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Earnings Report

Sudatel Telecommunications Group Company

Q1 26 NEUTRAL LOW Impact

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.