Emirates Telecommunications Group Company PJSC (ADX: EAND) reported a solid financial performance for FY 2024, with revenue rising 10% year-on-year to د.إ59.2 billion, surpassing analyst expectations by 1.5%. The company’s net income also increased by 4.3%, reaching د.إ10.8 billion, although the profit margin dipped to 18%, down from 19% in FY 2023 due to higher expenses.
The primary revenue driver was the E& UAE segment, contributing د.إ33.1 billion, or 56% of the total revenue. However, the company faced significant costs, including a د.إ38.2 billion cost of sales and د.إ8.18 billion in non-operating expenses, which impacted earnings. Despite this, earnings per share (EPS) rose to د.إ1.24 from د.إ1.19 in FY 2023.
Looking forward, Emirates Telecommunications forecasts an 8.1% annual revenue growth over the next three years, well above the 4.0% forecast for the telecom industry in Asia. The company’s shares have risen 3.0% over the past week. However, analysts also highlight two warning signs that investors should consider when evaluating the company’s financials.
