Etisalat’s Board of directors proposes a record total dividend per share for the year 2020 of AED 1.20, inclusive of 40 fils special dividends
Etisalat Group Reports Consolidated Net Profit of AED 9.0 billion a 3.8% increase year over year
Abu Dhabi, February 23 2021: Etisalat Group announced today its consolidated financial statements for the 12 months ending December 31 2020.
2020 Financial Highlights and Key Developments
Community Support during Covid19
Etisalat launched multiple initiatives to support the community during the pandemic including but not limited to:
H.E. Obaid Humaid Al Tayer, Chairman of Etisalat Group, said: “As we begin our journey into a new digitally empowered future, 2020 was a true testimony to Etisalat Group’s resilience and agility.
“Despite the unprecedented global impact of the COVID 19 pandemic, Etisalat demonstrated robust financial performance, driven by our bold vision to constantly innovate while ensuring that communities we serve remain connected, informed and productive. Across our footprint, we stood for our communities and took immediate steps to protect our teams and customers, support critical verticals, and ensure the uninterrupted delivery of quality services. We engaged heavily with governments and authorities while supporting the community with innovative offerings and free initiatives that assisted students, organisations, and societies as a whole. During the year, revenue and net profit growth were witnessed in our international markets while the domestic market experienced a decline in both due to the pandemic and market maturity.
The telecom industry has proven to be the backbone of the new-norm and a tool of empowerment. We take pride in our response that stood out amongst global peers across our footprint. Etisalat demonstrated strong commitment, swift reactions, and readiness as a result of years of adept planning of business continuity and crisis management scenarios. We have also been in leading positions across several industry rankings. Years of investments in infrastructure and digital capabilities resulted in positioning Etisalat on global standings in ICT readiness and adoption, broadband subscriptions, fiber penetration and mobile coverage.
Etisalat Group is well positioned for the future and we are confident in our ability to maintain our exceptional financial performance. In addition to sustaining our total dividend of AED 0.80 per share, we are pleased to be proposing a special one-time dividend of AED 0.40, bringing the total dividends for the year to AED 1.20 per share representing a dividend payout ratio of 115% and a high dividend yield for year 2020. This is a testament to our commitment of enhancing shareholder value.
I would like to extend my gratitude and appreciation to the UAE leadership, an inspiration and motivation behind every success in our journey. Thanks to our customers for allowing us to be part of their lives, our stakeholders for their continuous trust and Etisalat employees and management team for their efforts and unwavering commitment towards realising our vision of ‘Driving the Digital Future to Empower Societies.”
Eng. Hatem Dowidar, CEO of Etisalat Group, said: “Our journey in 2020 was transformational with an unprecedented pandemic that reshaped humanity, created a new ‘irreversible’ normal, shattered the digital adoption divide, and accelerated the future. For Etisalat Group, it was a year of resilience, agility, social responsibility, and in contrast to many businesses, great results. A moment of truth that obliged us to reflect and transform at group level to affirm our position as a leading world-class telco.
It was indeed a challenging year, however across our operations we remained committed and took necessary steps to support our customers and the communities we serve. Our prime focus was to ensure business continuity and the sustainability of high quality services in a manner that was safe for our employees and customers. This was all possible due to the relentless effort towards realising our vision while investing for growth, sustaining a world-class telecom infrastructure, retaining differentiated assets, platforms, and capabilities integral to building a network for a better future across our operations. As a result we have achieved many historical milestones, from being recognised as the fastest mobile network in the world, to being crowned the strongest brand in Middle East and Africa and the most valuable telecom portfolio brand for a fifth year in a row.
In a challenging environment, we performed effectively and achieved strong financial and operational results with slightly lower revenue. Group consolidated revenue decreased by 0.9% while EBITDA rose by 0.3%, resulting in a healthy EBITDA margin of 51.1% The COVID-19 pandemic has had a negative impact on UAE’s performance that resulted in revenue and EBITDA decline. This was mostly compensated by growth in revenue and EBITDA of international operations. Consequently, consolidated group net profit grew by 3.8% reaching AED 9.0 billion.
Moving forward, I am confident that we will remain in a strong position compared to our global peers and other industries by maintaining our momentum and continuing our efforts to address several industry-wide challenges, focusing on operational areas of improvement and creating group synergies to capture further value.
We are looking beyond business as usual achievements and aiming to accelerate several key strategic priorities. We are certain that our “own transformation” is a necessity considering the enormous changes in industry ecosystem. In 2020 we have launched a Group-wide transformation program to address the challenges and seize the opportunities while shaping the future for Etisalat Group as a leading world-class telco.
The digital services and international portfolio remain the major drivers for future growth. There is considerable untapped potential and opportunities in the areas of cloud, IoT, and cyber security, which are expected to fuel future digital growth and rebalance telecom revenues. We will remain focused on improving operational excellence across our footprint, rationalise our portfolio and enrich it with assets that maximise the return on investment for our shareholders and added value for our customers. Moreover, 5G deployment will continue and unlock new business opportunities.
Etisalat is thankful to the visionary leaders of the UAE for their continuous support of the telecom sector and we owe our customers and shareholders immense appreciation for their trust and support. Thanks to our dedicated teams for going far and beyond in serving our customers, sustaining premium services in times of uncertainty and in times of prosperity.
In the UAE, the subscriber base reached to 12.2 million subscribers, while Etisalat Group aggregate subscribers reached 154 million subscribers representing a year on year increase of 3.6%.
Revenue and Net Profit
Twelve month consolidated revenues reached AED 51.7 billion, while consolidated net profit after Federal Royalty for the twelve month amounted to AED 9.0 billion an increase of 3.8% compared to last year.
Consolidated EBITDA amounted to AED 26.4 billion an increase of 0.3% compared to prior year, and resulting in EBITDA margin of 51.1%.
Source: Etisalat Press Release