Sudatel Telecommunications Group Company Limited

1. Company Overview & Earnings Context

Sudatel Telecom Group is a telecommunications and digital services provider listed on both the Abu Dhabi Securities Exchange (ADX) and the Khartoum Stock Exchange. The Group operates across Sudan and several West African markets, offering mobile, broadband, telecom infrastructure and digital financial services. During H1 2026, Sudatel delivered strong revenue growth supported by the recovery of operations in Sudan, continued network expansion and the launch of its new fintech venture, SAH. However, higher depreciation, rising fuel costs and foreign exchange pressures weighed on profitability.

2. Financial Performance Snapshot

• Revenue: USD 278.9 Million (+29.8% YoY)

• Gross Profit: USD 102.5 Million (-17.8% YoY)

• Operating Profit: USD 49.6 Million (-27.2% YoY)

• Net Profit: USD 14.4 Million (-63.7% YoY)

• Earnings Per Share (EPS): USD 0.0106 (vs USD 0.0285)

Compared with H1 2025:

• Revenue increased 29.8% to USD 278.9 million.

• Gross profit declined 17.8% to USD 102.5 million.

• Operating profit declined 27.2% to USD 49.6 million.

• Net profit declined 63.7% to USD 14.4 million.

• EPS declined from USD 0.0285 to USD 0.0106.

3. Operational Highlights & Key Metrics

• Total Assets: USD 1.04 Billion

• Total Equity: USD 462.0 Million

• Cash & Bank Balances: USD 42.8 Million

• Operating Cash Flow: USD 93.8 Million

• Capital Expenditure: USD 61.8 Million

• Total Customer Base: ~10.3 Million

• SAH Fintech Customers: 867,000+

4. Key Performance Drivers

Sudatel's revenue growth was driven primarily by the continued recovery of its Sudan operations, ongoing network restoration and expansion, and the launch of its SAH fintech platform, which surpassed 867,000 customers by the end of June. Revenue also benefited from improvements in Mauritania and continued investments across West African operations. Despite this, profitability was impacted by higher depreciation following asset revaluations, a sharp increase in imported fuel costs and continued foreign exchange volatility.

5. Outlook & Forward Guidance

Management expects the recovery momentum in Sudan to continue through further network restoration and digital service expansion, while ongoing investments in Senegal and Mauritania are aimed at strengthening long-term growth. The Group also sees significant growth potential from its newly launched SAH fintech platform and expects it to play an increasingly important role in Sudan's digital economy, although exchange rate volatility and inflation remain key business risks.

6. Investor Takeaway

Sudatel delivered impressive top-line growth in H1 2026, supported by improving operating conditions in Sudan and continued investments across its regional businesses. While profitability remained under pressure from higher operating costs, depreciation and currency headwinds, the Group continued to generate positive earnings, strong operating cash flow and advance its digital transformation strategy through fintech expansion.