Revenue surged by 29% on YoY basis
The company maintained its strong growth trajectory in 3Q25, reporting revenue of AED 18,629mn (+29% YoY). This performance was primarily driven by the international segment, where revenue surged 67% YoY, underpinned by a 15% YoY increase in subscribers. Egypt was a key driver of subscriber growth, adding 4.3mn customers (+12% YoY) over the last 12 months.
Higher operating expenses impacted profitability
Net profit growth to shareholders remained muted in 3Q25, despite the strong top-line performance. This pressure stemmed primarily from a 36% YoY increase in operating expenses, outpacing revenue growth. Additionally, higher federal royalty payments, tax expenses, and a YoY increase in finance costs further weighed on profitability.
U-Capital View
Emirates Telecom. continues to grow, driven by steady performance in its UAE segment and rapid international expansion. The recent acquisition of PPF Telecom is set to further bolster this international footprint and provide an incremental revenue boost, while its other segments (Enterprise and Life) also post healthy growth. We maintain an Accumulate rating on the stock with a target price of AED 21.9/share.