E&A Soars 60.7% in H1, Reporting AED 8.8 Billion in Profits

e& Posts 60.7% Profit Surge as UAE Telecoms Giant Accelerates Global AI and Digital Sovereignty Push

UAE telecommunications powerhouse e& has delivered explosive first-half 2025 results, with net profits soaring 60.7% to AED 8.8 billion as the company aggressively expands its global footprint and positions itself at the forefront of artificial intelligence and digital sovereignty initiatives. The results underscore how regional telecom leaders are evolving beyond traditional connectivity into comprehensive technology ecosystems.

Financial Performance Reflects Strategic Transformation

e&'s consolidated revenues reached AED 34.9 billion in the first half of 2025, marking a robust 23.3% year-on-year increase. The company's EBITDA climbed 18.8% to AED 15.4 billion, achieving a healthy 44.1% margin that demonstrates operational efficiency amid rapid expansion.

The financial momentum accelerated in Q2 specifically, with revenues growing 28.1% annually to AED 18.0 billion. This performance trajectory places e& among the fastest-growing major telecommunications groups globally, particularly impressive given the mature nature of many telecom markets.

Global Subscriber Base Expansion Drives Growth

e&'s worldwide subscriber count reached 198 million, up 13.1% from the previous year, while domestic UAE subscribers grew 6.3% to 15.5 million. This expansion reflects increasing demand for advanced connectivity solutions, AI services, and integrated digital experiences across both consumer and enterprise segments.

The subscriber growth pattern mirrors successful expansion strategies employed by other regional champions like Saudi Arabia's STC and Qatar's Ooredoo, who have similarly leveraged strong domestic positions to fuel international growth.

Digital Sovereignty Initiative Positions UAE as Regional Tech Hub

A standout strategic development was e&'s launch of the "UAE Sovereign Launch Platform" in partnership with Amazon Web Services and the UAE Cybersecurity Council. This initiative represents a significant shift toward digital sovereignty – a trend accelerating globally as nations seek greater control over critical data infrastructure.

The platform enables secure AI technologies and cloud innovation while allowing vital sectors to rely on advanced local infrastructure. This positions the UAE alongside countries like Singapore and Estonia in building sovereign digital capabilities, potentially attracting international businesses seeking data residency solutions in a stable jurisdiction.

AI Leadership Recognition

e& became among the first companies to receive the highest "Category S" classification under Dubai's AI Seal initiative, reflecting its commitment to responsible AI development. This regulatory recognition provides competitive advantages as enterprises increasingly prioritize AI governance and compliance.

Strategic Portfolio Optimization Creates Financial Flexibility

The company executed significant portfolio moves during the period, including divesting its stake in Khazna and partially exiting Airalo. These strategic sales generated substantial cash flows, providing financial flexibility for future investments and acquisitions.

e& also completed its acquisition of Serbia Broadband, expanding its European footprint. This follows a broader trend of Gulf telecommunications companies acquiring assets in emerging European markets, where infrastructure modernization needs create attractive investment opportunities.

5G and Edge AI Integration Accelerates

The partnership with Qualcomm to accelerate 5G network development and edge AI integration across critical sectors positions e& to capitalize on the convergence of connectivity and computing. Edge AI represents a particularly lucrative opportunity as enterprises seek low-latency processing capabilities for autonomous systems, smart manufacturing, and real-time analytics.

This technology integration strategy resembles approaches taken by leading Asian operators like Singapore's Singtel and South Korea's SK Telecom, who have successfully monetized advanced network capabilities through enterprise solutions.

Market Implications and Investment Outlook

e&'s performance suggests the telecommunications sector's evolution toward technology platforms is accelerating, particularly in regions with strong government digitization initiatives. The company's 60.7% profit growth significantly outpaces traditional telecom sector benchmarks, indicating successful business model transformation.

For investors, e&'s results demonstrate how regional telecommunications leaders can leverage geographic advantages, government partnerships, and strategic investments to achieve technology company-like growth rates while maintaining telecom-level cash generation.

The digital sovereignty focus also positions e& to benefit from increasing enterprise demand for locally-controlled cloud and AI infrastructure, a market segment expected to grow substantially as data localization requirements expand globally.