ABU DHABI: e& today announced its consolidated financial results for H1 2023 and that it has signed a binding agreement with PPF Group (PPF) to acquire a controlling stake (50 percent + 1 share economic stake) in PPF Telecom Group’s (PPF Telecom) assets in Bulgaria, Hungary, Serbia, and Slovakia. PPF Telecom is the telecommunications division of PPF.

e&'s consolidated revenues during the H1 2023 reached AED 26.6 billion, a year-on-year (YoY) increase of 1.1 percent. Consolidated net profit recorded AED 4.7 billion while consolidated EBITDA reached AED 12.8 billion, resulting in an EBITDA margin of 48 percent.

In the UAE, etisalat by e& recorded 13.9 million subscribers an increase of 5.1 percent compared to the same period of last year. The Group’s aggregate subscribers reached 165 million, a YoY increase of 3.1 percent.

Jassem Mohamed Obaid Bu Ataba Alzaabi, Chairman, e&, said, “e&'s performance during the first half of the year reinforces the resilience of our business model despite the challenging global macroeconomic environment. This was also the result of our teams' relentless efforts to remain committed to our vision and drive sustainable growth, making a positive change in the societies we serve while adding value to our shareholders.

"Today we are also delighted to announce e&'s strategic expansion into the European market. With this move, we join forces with PPF to build and expand our international footprint in the attractive Central and Eastern Europe region and beyond. It is the next step of our transformation into a global technology group, offering e& multiple avenues to roll-out its leading suite of B2B and B2C digital products in the CEE with significant synergies.

"The acquisition aligns with e&’s strategic ambition to accelerate international growth and diversify geographically. This represents an unparalleled opportunity to establish a strong presence and foster development within the dynamic CEE region. The PPF Telecom portfolio, spanning four countries, exhibits a well-balanced structure, underpinned by robust macroeconomic fundamentals and stable currencies. The countries of its operations are characterised by regulatory stability, healthy competition, and highly attractive returns, positioning them among the most promising in Europe. e& will consolidate more than 10 million subscribers from this acquisition post-closing.

"We achieved remarkable progress in our strategic focus areas, supported by strong performance in our core telecom business, increased demand for our innovative digital services and solutions, and a commitment to deliver cutting-edge solutions that accelerate digital transformation in the communities we serve. During the period, we also made strategic investments and fostered partnerships that will drive our growth in the coming years, pushing us to seize new opportunities in the fast-evolving digital landscape.

"In line with the UAE leadership's vision, we are committed to continuing progress and development and enhancing our confidence in the added value e& provides. We are resolute in our commitment to spare no effort in delivering cutting-edge technologies and world-class services that will not only shape the digital future but also turn the vision of sustainable socio-economic growth into a tangible reality. With the utmost dedication, we aim to play an instrumental role in fostering a knowledge-based economy, cementing our position as a driving force for innovation and progress.”

Hatem Dowidar, Group CEO, e&, stated, “Over the past six months, we have demonstrated a strong sense of resilience and adaptability. Our relentless focus on excellence and innovation has allowed us to thrive in the dynamic landscape of the telecommunications and technology sectors, maintaining our growth momentum. This positive performance has been driven by our core businesses and our new business verticals, which have seen an increase in demand domestically and internationally.

“This growth was also fueled by harnessing the power of our technological prowess, leveraging our expertise to forge new paths, disrupt industries, and transform the way we do business on a global scale. Our commitment to pushing boundaries and embracing change has positioned us as a true trailblazer in the digital era. Our success has been driven by the combination of our innovative, customer-centric strategies and the unwavering dedication of our teams, along with our investment in world-leading infrastructure and cutting-edge technologies that consistently serve as the foundation of our achievements.”

“I would like to express my gratitude to our dedicated employees, whose relentless efforts and innovative spirit remain the driving force behind our progression. Similarly, we thank our loyal customers and stakeholders for their continued faith in our vision. Looking ahead, I remain confident that our commitment to connecting people, businesses, and communities through technology will enable us to provide continuous growth and value for our customers and stakeholders in the years to come,” he added.