Earnings Report

Sudatel Telecommunications Group Company

Q1 26

1. Company Overview & Earnings Context

Sudatel Telecommunications Group reported its FY2025 results, delivering a strong and record performance, with significant growth in revenue and profitability despite operating challenges.

2. Financial Performance Snapshot

Revenue: ~AED 1.66B (+19% YoY)
EBITDA: ~AED 0.87B (52% margin, +3pp YoY)
Net profit: ~AED 0.43B (+549% YoY)
Net profit margin: ~26% (significant expansion YoY)
EPS: ~AED 0.31
Operating income: Highest since inception

3. Operational Highlights & Key Metrics

Non-current assets: ~AED 4.44B (significant increase YoY)
Shareholders’ equity: ~AED 2.81B (strong expansion)
Sudani (core segment):

Net income: ~AED 0.50B
EBITDA margin: 65%

Infrastructure expansion:

94 new sites added
1,586 km fiber backbone deployed
543 sites upgraded with hybrid power solutions

4. Key Performance Drivers

Sudatel’s FY2025 performance was driven by strong operational resilience and disciplined execution, despite operating in a challenging macro and geopolitical environment.

Key drivers included:

Revenue growth (+19%), supported by stable telecom demand and USD-denominated pricing discipline
Significant margin expansion, with EBITDA margin reaching 52%
Sharp increase in net profit (+549%), aided by improved operating efficiency and strong performance from the Sudani segment
Balance sheet strengthening, primarily driven by asset revaluation and infrastructure expansion

However, some international operations (Senegal and Mauritania) remained loss-making, impacting overall geographic performance mix.

5. Outlook & Forward Guidance

The Group enters 2026 with its strongest financial position in a decade, with plans to:

Increase investment in digital infrastructure and data services
Drive turnaround of West African operations
Maintain operational discipline amid geopolitical and economic uncertainties

Management remains focused on long-term value creation and strengthening regional connectivity capabilities.

6. ???? Investor Takeaway

Sudatel delivered record earnings growth driven by strong margins and resilience, though performance remains exposed to geopolitical risks and underperforming international segments.