e& Delivers Strong Q2 Financials with Subscriber Surge
Consolidated revenue for Q2 rose 28.1 per cent to AED 18.0 billion, while earnings before interest, tax, depreciation and amortisation increased by approximately 22.2 per cent year‑on‑year to AED 8.0 billion, yielding an EBITDA margin of around 44–44.5 per cent. For the first half of 2025, the group's net profit surged 60.7 per cent to AED 8.8 billion, on consolidated revenue of AED 34.9 billion, up 23.3 per cent compared with the same period in 2024.
Expansion of its subscriber base emerged as a key growth driver: the total number of users increased 13.1 per cent year‑on‑year to 198 million globally, including a rise to 15.5 million domestic subscribers in the UAE. Executives attribute this growth to rising demand for advanced connectivity, AI‑enabled services and bespoke digital solutions.
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Chairman H. E. Jassem Mohamed Bu Ataba Alzaabi said that the financial strength reflects disciplined strategy and long‑term value creation, citing initiatives such as the UAE Sovereign Cloud Launchpad launched with AWS and the UAE Cybersecurity Council, which targets digital sovereignty and is projected to add US$ 181 billion to the national digital economy by 2033. CEO Hatem Dowidar highlighted strategic divestments—such as exits from Khazna and Airalo—and expansion into new territories, including the acquisition of Serbia Broadband, as milestones in the company's growth path.
Operational enhancements also supported performance. e& secured a Tier S rating under the Dubai AI Seal for responsible AI use, formed partnerships with Qualcomm to scale 5G and edge AI, and rolled out Business Continuity as a Service, an AI governance framework with IBM, and an AI lab in collaboration with Open Innovation AI.
Financial metrics reveal strong cash generation and low leverage. Operating free cashflow rose 15.6 per cent year‑on‑year to AED 5.5 billion, with free cashflow margin around 30.7 per cent. Group net debt stood at AED 34.5 billion, yielding a modest net debt/EBITDA ratio of 1.19x, with a cash balance of AED 30.9 billion as of the end of Q2. Capital expenditure excluding spectrum and licence fees totalled AED 2.5 billion, representing a capex intensity of approximately 13.8 per cent.
Analyst consensus indicates that e& is consolidating its position as a global telecom‑tech operator. Brand Finance named it the world's fastest‑growing brand, and the company has been expanding its footprint internationally, including launching a new office in Miami and forging partnerships across the Americas with Digicel.
On the market front, performance in the sector is mirroring broader regional sentiment. UAE stock markets climbed driven by rising oil prices and optimism over trade agreements, lifting telecom shares, including a 1 per cent rise for Du following stronger quarterly results ■…
While Emirates NBD, the UAE's largest lender, saw a profit decline in the first half of 2025 due to tax impacts and weaker recoveries, e& stands in contrast with strong growth momentum and robust profitability
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