e& embodies a vision that transcends traditional constraints, and its unwavering commitment to this ideology has been the cornerstone of its success by focusing on hyper-scale, achieved through a deep understanding of customer needs, combined with rigorous specialisation.
Our philosophy is rooted in a commitment to responsiveness. Whether it's feedback from customers, shareholders, partners, or employees, we listen and act. This attention has enabled us to revolutionize the way businesses operate in the markets we serve, and to continually innovate to bring communities together in new ways.
The digital age is calling, and e& is responding with vigour. Our evolution as a technology group is reflected in our significant investment in innovative digital solutions. This is accelerating the digital transformation of communities across the 16 markets we serve.
e&’s business structure reflects a carefully considered diversification into five key verticals: etisalat by e&, e& international, e& life, e& enterprise, and e& capital. Each of these verticals has distinct strategies that enable us to respond to the needs of different stakeholders, both locally and globally. They symbolize a proactive approach to harnessing the immense potential of the rapidly changing digital environment. The guiding principle is clear: innovation that delivers superior value.
It is this forward-thinking approach that has driven the exponential growth of our businesses. This trajectory promises even more growth across our commercial ecosystem.
The market's confidence in our strategic efforts is reflected in our third quarter financial results. e& reported consolidated revenues of AED 13.4 billion with a YoY increase of 3.3 percent, while consolidated net profit was AED 3.0 billion, a year-over-year increase of 20 percent. Our subscriber base has also grown remarkably, and our financial indicators reflect the strong demand for our digital and data services.
As e& moves towards technological leadership, we are taking advantage of transformative technologies such as 5G, AI, blockchain and IoT. Our acquisition of a 57 percent stake in STARZPLAY Arabia demonstrates our ambition to strengthen our international presence and deepen our activities in digital verticals. With the investment into Careem, there are also several growth opportunities with strengths in fintech and multimedia. This, coupled with our services and regional footprint, will accelerate the joint vision towards a regional super app. This partnership will set new standards of product innovation and customer experience throughout the region.
By broadening our horizons, our verticals such as e& capital and e& enterprise have strengthened our capabilities. Recent collaborations with companies such as Smartworld and Bespin Global MEA have extended our reach, while strategic investments such as VUZ and LabLabee demonstrate our determination to remain at the forefront of technological progress.
e& is evolving and always pushing boundaries. Our journey is just beginning.
Making its Mark in the Technology Sector and Remaining Competitive
e& is not just a telecom company; we are a heritage built over 47 years, constantly evolving and innovating to stay at the forefront of the digital age. Our aim has always been to be more than a service provider; we want to be the trusted partner in the interconnected digital world. We do this by adopting a customer-centric approach while leveraging the latest technologies, analytics, and innovation.
The strong growth of our subscriber base, which has reached 167 million by the third quarter of 2023, is a testament to our progressive approach. This significant leap was achieved through network expansion, smart investments, and a commitment to delivering a seamless digital experience.
The strength of our brand is unrivalled, with etisalat by e& reigning as the leading brand across all sectors in the Middle East and Africa. This is reflected in our 'AAA' rating and prominent position as one of the world's top telecoms brands in the 2023 Brand Finance Global 500 report.
But we're not just about connectivity, we're about enhancing lifestyles. As we embarked on this journey of making a mark in the global technology industry, and moving from a telco to a techco, it was essential to strike the right partnerships and incorporate technologies in our services and solutions to achieve our vision.
In the industry, and internally, AI is a technology that has left a profound impact and is also transforming industries, which will only grow in the coming years. At e&, we partnered with Microsoft to explore the integration of the technology into our services, becoming a powerful tool for improving customer experience, helping businesses provide more personalized customer support. Our UAE operations led by etisalat by e& are already setting industry benchmarks with certifications on Open API that has reflected internally in efficient integration, streamlining the development and operation of complex services.
Thanks to the UAE’s leadership’s vision, this has also supported us in charting out our ambitious plans for AI. In the last year, the country has rolled out multiple digital strategies to establish itself as a global AI powerhouse by 2031. All of which aligns seamlessly with the UAE Centennial 2071 vision of fostering a robust knowledge-driven economy.
The impact of AI on the region's economic augmentation is monumental. Projections show that by 2030, AI will infuse a staggering USD 320 billion into the Middle East and North Africa region, predominantly through industrial automation savings. On a global scale, AI's economic contribution is anticipated to hit a massive USD 15.7 trillion.
Similarly, 5G has revolutionized every industry since its launch with its faster speeds and lower latency, which is supporting the growth of IoT, autonomous vehicles and smart cities in the Middle East and globally. With e&’s sustained investments spanning several decades in network infrastructure, the United Arab Emirates (UAE) has emerged as a global leader, currently securing the 143rd position worldwide in terms of 5G mobile speeds. Additionally, the Net Promoter Score (NPS), a key metric gauging customer experience on the network, reflects the UAE's and e&’s commitment to providing exceptional services. This impressive standing highlights the nation's dedication to advancing telecommunications technology and ensuring a superior connectivity experience for its users on a global scale.
Edge computing is another technology that will help with real time data processing and is being used in a variety of industries in the Middle East, especially oil and gas, manufacturing, and transportation. With etisalat by e&’s successful launch of the ‘Microsoft Azure for Multi-Access Edge Computing for Enterprises (MEC)’ service, it was another first in the region that was made available across various sectors.
The distributed ledger technology blockchain is making a major difference in creating secure and transparent transactions. UTC, the fintech blockchain platform of e& enterprise, is the first commercialized solution that has 12 banks onboard. It is a cloud-native solution that detects suspicious transactions, prevents fraud and duplication, and supports a wide range of trade-related documents that are validated and inspected in real time.
5G has also supported the growth of IoT which is expected to have a major impact on the global economy in the coming years. According to a report by McKinsey, IoT could generate up to USD 11.1 trillion in economic value each year by 2025. The Middle East is also expected to see significant growth in the IoT market in the coming years. According to recent reports and studies, the IoT market in the Middle East is expected to grow to USD 42.8 billion by 2028.
By prioritizing support for the Internet of Things (IoT), e& enterprise is actively facilitating governments and businesses in intensifying their initiatives to transition into data-driven and highly automated organizations. By investing in IoT technologies, businesses can improve their efficiency, productivity, and profitability. Governments can use IoT to improve the quality of life for their citizens by developing smart cities and smart infrastructure.
A great example of this is the recent collaboration with Emirates Health Services (EHS) and Abu Dhabi Department of Economic Development (ADDED) to develop and advance technologies and initiatives to improve the overall customer experience in healthcare and manufacturing. EHS will work with e& enterprise to explore cloud-based enterprise systems and platforms for community health programmes, specifically focused on healthcare seekers in the Northern Emirates. Together with e& enterprise, they developed the ‘Digital Clinic’. The aim was to improve access and quality of care through the integration of digital technologies into clinical workflows, evidence-based care and shared decision making in a sustainable and scalable way.
With ADDED, they will look at Industry 4.0 and sustainable manufacturing, as part of efforts to achieve the Abu Dhabi Industrial Strategy's (ADIS) objectives by adopting technologies like cloud computing, cybersecurity, Internet of Things (IoT), and Artificial Intelligence (AI) to empower manufacturing enterprises in Abu Dhabi.
All these technologies are transforming our lives and making a major impact regionally and globally in the coming years. At e&, we are in a unique position and can contribute to the future of the region by investing in these technologies and developing new products and services that leverage them, while creating a more sustainable and greener future.
In short, the telecoms and technology landscape is changing and so are we, enabling e& to remain not only relevant, but indispensable.
Focusing on Sustainability and Corporate Responsibility
In today's rapidly changing business landscape, organizations need to lead with purpose, especially when it comes to sustainability and corporate responsibility. At e&, we are deeply committed to playing our part in global climate action and understand the importance of aligning our mission with global environmental, social and governance (ESG) standards.
Embedding sustainability into our DNA is at the heart of our ethos, not an afterthought. Through a focused effort, we have integrated these principles into our systems and processes, with a particular emphasis on energy efficiency and the use of renewable energy. We see it as our duty not only to manage our environmental footprint, but also to cultivate a vision of a sustainable future that resonates with governments and the business community.
The UAE's ambition to be at the forefront of climate change solutions has found a committed partner in e&. Every facet of our business embodies sustainability, as clearly demonstrated by the pivotal role we played in joining the UAE Independent Climate Change Accelerators (UICCA). Our participation in major events such as the COP28 conference is not just a representation; it is a demonstration of our commitment and underlines our goal of achieving zero net operations emissions in the UAE by 2030.
e&'s pursuit of sustainability is demonstrated through tangible actions. For example, our switch to energy-efficient wireless equipment at mobile network sites has resulted in a staggering 52 percent reduction in energy consumption. In real terms, this equates to an annual reduction of 7.6 tonnes of carbon emissions per site. Through these initiatives, we hope to lead the way for others to join us in our collective journey towards a sustainable future.
Our responsibility extends beyond the environment to the well-being of society. Our membership of global initiatives such as the Edison Alliance reinforces our commitment to digital inclusion and supports the United Nations' Sustainable Development Goals. e& has also been at the forefront of electric mobility in the UAE with its 'Charge&Go' initiative. More than just a charging network, this initiative embodies our commitment to a sustainable future and aligns perfectly with milestones such as the Emirates Net Zero 2050 goal and the Dubai Integrated Energy Strategy 2030.
Technology inclusion remains at the forefront of our vision. We have launched digital accessibility initiatives, as a result of significant collaboration with key players in the energy sector. At the same time, the relentless influence of AI on our industry is driving us to partner with global technology and ESG stalwarts. This enables us to deliver ESG-centric services while preserving the environment for future generations.
Our commitment to education and the democratization of technology is exemplified by our collaboration with Code.org, which aims to enrich computer science education in the Middle East, Asia, and Africa. By joining forces with partners, we stimulate innovation and pave the way for transformative solutions that improve the education ecosystem.
e&'s commitment to inclusion extends beyond technology and is reflected in our efforts to ensure gender balance and the empowerment of women within our business and in the markets in which we operate. As a technology conglomerate, we have leveraged our capabilities to provide free communication services to communities in need, such as those in Morocco and Libya, demonstrating our unwavering commitment to social responsibility.
In conclusion, as e& continues its growth trajectory, our core principles of sustainability, inclusion and corporate responsibility remain firm and guide us every step of the way. Our journey is not just about business expansion; it's about ensuring that every step we take leaves a positive and lasting impact on our world.
Vodafone Partnership
The recent partnership with Vodafone marks a pivotal moment in the development of e&. As we move forward, it is imperative that we articulate the strategic nuances and potential benefits that this collaboration brings to our clients and the region.
Our partnership is a testament to e&'s unwavering commitment to leadership and innovation. As we consolidate our position as Vodafone's cornerstone shareholder, we are advancing a strategic relationship that began in May 2022 when e& first invested in Vodafone. The depth of this partnership allows us to leverage our respective operational strengths, as well as our extensive and complementary geographies.
Among the opportunities for business collaboration, the enterprise segment stands out. Together with Vodafone, we want to redefine the way cross-border digital services are delivered to multinational companies and government organizations. We envisage a full range of services, from fixed and mobile connectivity to IoT, to cybersecurity to cloud services, promising holistic digital transformation.
Procurement is another key area. By pooling our knowledge, we are not only sharing best practice, but also looking at joint procurement to drive efficiencies and value. What's more, our combined ambitions in carrier, wholesale, and roaming make us potential leaders in delivering an unrivalled digital infrastructure.
Technological progress remains at the heart of our concerns. Together, e& and Vodafone are charting a technological course that includes the evolution of Open RAN, ensuring that our technology solutions are ready for the future.
Our strategic collaboration is already bearing fruit. The collaborative venture between our organization and Vodafone Business, culminating in the acquisition of a significant client, the Al-Futtaim Group, marks a pivotal milestone. This collaboration is instrumental in the development of a software-driven network tailored for the specific needs of the Al-Futtaim Group. This partnership underlines our ability to deliver superior value to multinational customers by leveraging our combined scale and regional expertise.
The MoU signed between Vodafone Business and e& further strengthens our commitment. Our shared intention is clear: to be at the forefront of digital transformation, ensuring that businesses and the public sector benefit from our combined offerings.
In short, this partnership is about shaping the future of the technology and the telecoms landscape, globally, by ensuring unrivalled quality of service and innovation.
Digital Transformation is a Key Priority
In today's dynamic business landscape, the need for digital transformation is clear and at e& we have strategically positioned ourselves at the forefront of this change. e& utilises the power of technology and digital solutions to refine our services and drive operational excellence.
Our strategy is based on a holistic approach to innovation and technology. It's not just about adapting; it's about reimagining our future. Our vision is not just growth, but sustainable growth. We aim to broaden our scope through the seamless integration of non-telecom verticals and a diversified geographic footprint. Key acquisitions in the telecoms and technology sectors such as El Grocer, Smartworld, STARZPLAY Arabia, Bespin Global and the merger with Khazna underlines our intention.
While these acquisitions play a key role in our digital journey, it is the partnerships that crystallize our technology strategy. Collaborations with giants such as Microsoft, META, NICE and Oracle equip us with cutting-edge digital solutions, ensuring e& stays ahead of the rapidly evolving digital curve. What's more, our investment in Smartworld and alliance with DataRobot strengthens our capabilities in IoT and AI. It's not just about acquiring technology, it's about orchestrating transformative solutions for our customers and strengthening our position in cybersecurity, cloud, IoT and AI.
Collaboration remains at the heart of our approach. Our engagement with technology leaders such as Microsoft, Google, and Amazon accelerate our pace of innovation. This synergy allows us to design and refine products, gain deep customer insights and venture into previously uncharted territory.
At the same time, we recognize the importance of digital financial solutions. Strategic alliances with financial giants such as MoneyGram, VISA and Mastercard reinforce our commitment to disrupting the traditional financial paradigm. With e& life, our ambition goes beyond simple transactional offerings; we aim to revolutionize financial inclusion for the people of the UAE by combining security, flexibility, and intuitiveness.
Our fintech arm, e& money, embodies this ambition. As the UAE's pioneering digital payment service, authorized by the Central Bank, our vision is bold: to become the UAE's financial super-app of choice. This includes an unwavering commitment to innovation, demonstrated by a wide range of fintech products covering everything from remittances and bill payments to investments and insurance.
The road ahead for e& money is exciting. We are on the verge of launching new capabilities such as companion cards, loans, and investments. Leveraging our core strengths, our horizon includes a wide range of fintech offerings tailored to a diverse customer base; in line with our ambition to be the pinnacle of digital wallets and financial apps in the UAE.
In summary, e&'s digital transformation journey is not a reactive strategy, but a proactive plan, finely-tuned to the evolving needs of our customers and the market at large. We're not just navigating the digital age, we're shaping it.
