e& lowers Capex intensity ratio to 15.5% for 2022

e& (formerly known as Etisalat) lowered its Capex intensity ratio to 14.5-15.5% for 2022, from a previous forecast of 16.5-17.5%.

e& said its capital expenditure in the third quarter of 2022 fell by 41% to AED1.6 billion with an intensity ratio of 12%; Excluding spectrum and license acquisition costs, capital expenditures decreased by 2%.

Capital expenditures were boosted by its significant investment in a superior network. This includes the deployment of the 5G network in the United Arab Emirates, the expansion of the fiber network in the countries of the Maroc Telecom group and in Pakistan as well as the expansion of the coverage of mobile networks in Egypt, Pakistan and in the Moov markets. Africa.

In the United Arab Emirates, capital expenditure increased by 6% to reach AED 0.6 billion. The capital intensity ratio was 7%, remaining stable compared to the same quarter of the previous year and 2 percentage points higher than in the second quarter of 2022. Capital expenditure focused on the modernization of the network and capacity improvement in addition to the deployment of 5G.

Capital expenditure in e& international fell 52% to AED 1 billion compared to the same period last year and fell 26% from the previous quarter. International activities represented 65% of the Group’s total capital expenditure.

At Maroc Telecom, third-quarter capital expenditure decreased in AED terms by 3% year-on-year and 35% quarter-on-quarter to reach AED 0.6 billion, which results in a capital intensity ratio of 20%.

Capital spending in Morocco was up 8% year-over-year and focused on the fibre-to-the-home (FTTH) network, improving capacity and expanding 4G coverage.

In Moov Africa operations, Capex increased year-over-year by 15% focusing on network expansion and upgrades to support traffic and customer growth and network deployment FTTH in new countries.

In Egypt, capital expenditure for the third quarter decreased by 31% year-on-year to reach AED 0.2 billion, resulting in a capital intensity ratio of 17%, 7 percentage points less than in the same period of the previous year. Capital spending has been focused on 4G deployment after acquiring spectrum and upgrading network capacity.

In Pakistan, capital expenditure fell 86% year-on-year to AED0.2 billion, resulting in a capital intensity ratio of 27%, or 131 basis points. percentage lower than prior year due to spectrum acquisition in Q3 2021. Capital spending focused on mobile network expansion. network coverage, FTTH deployment and fixed network capacity reinforcement.

e& reported revenue of AED13 billion and net profit of AED2.5 billion in the third quarter of 2022.

e& recorded operating expenses of AED 8 billion, a decrease of 4% compared to the same quarter of the previous year and a decrease of 1% compared to the second quarter of 2022. This decrease highlights the the Group’s ongoing efforts to control and optimize costs to offset inflationary pressures by illustrating sound cost discipline. As a result, we recorded lower marketing, personnel, depreciation and consulting costs, among others.

The total number of subscribers as of September 30, 2022 stands at 162 million, recording the highest number of subscribers in the Group’s history. This resulted in a net increase of 6.2 million over the last 12-month period, primarily due to strong subscriber acquisition in Egypt, UAE, Mali, Burkina Faso, Côte d’Ivoire, Chad, Benin and Pakistan. The quarter-over-quarter subscriber base grew by 1.6 million.

The number of etisalat subscribers by e& in the United Arab Emirates reached 13.3 million in the third quarter of 2022, an increase of 11% compared to the same period last year, while the total number of subscribers of the group reached 162 million, an increase of 4%.

“We are focused on adopting flexible and agile business models that fuel growth through innovation and the creation of new value propositions,” said Hatem Dowidar, CEO of e& Group.

Sallie R. Loera