e& Posts 11.6% Revenue Growth, Subscriber Base Surges Past 250 Million
e&, the UAE-based telecom and digital services group formerly known as Etisalat, reported consolidated revenue of AED 38.1 billion for the first half of 2026, an 11.6% jump from the same period last year. Net profit reached AED 6.0 billion, up 2.4% year-on-year after adjusting for one-time gains in 2025 from the sale of data centre business Khazna and the Maroc Telecom settlement.
The group’s total subscriber base expanded by 30.4% to 251.5 million, with its home-market UAE operations adding 6.4% more subscribers to reach 16.5 million. EBITDA climbed 13.1% to AED 17.7 billion, yielding a robust 46.5% margin.
Beyond operational metrics, the period marked a major portfolio overhaul. In July 2026, e& completed the sale of its entire stake in Vodafone Group Plc, generating gross cash proceeds of AED 21.9 billion (USD 5.95 billion) and a net cash return of AED 4.8 billion. The group also sold a 12.5% slice of its 50.03% holding in ride-hailing and delivery platform Careem Technologies to Uber for AED 367 million, deconsolidating Careem from its accounts.
What e&’s H1 Numbers and Asset Sales Signal for Its Strategy
The Vodafone Exit and Capital Recycling
Disposing of the Vodafone stake after a strategic review signals that e& intends to recycle capital into markets or asset classes where it can exercise more control. The AED 21.9 billion in cash provides substantial firepower for targeted acquisitions, technology infrastructure investments, or shareholder returns. It also removes exposure to a European telecom incumbent that has faced margin pressure and complex regulatory landscapes.
Subscriber Growth at Scale
A 30.4% jump to 251.5 million subscribers cannot be explained by organic growth alone in a mature UAE market. This likely reflects consolidation effects from prior international deals or a reclassification of digital service users. Still, the 6.4% increase in UAE subscribers confirms that the core domestic market remains healthy and that demand for AI-enhanced digital experiences and advanced connectivity is resilient.
Margin Strength Amid Regional Uncertainty
The 46.5% EBITDA margin is among the highest in the global telecom sector. Management attributed it to proactive risk management and portfolio diversification. With both top-line growth and margin expansion, e& appears to have contained cost pressures while still investing in AI and digital services.
Careem Stake Sale and Technology Bets
Selling a 12.5% stake to Uber locks in a gain and deepens the commercial relationship between e& and the global mobility platform. It also reduces the group’s exposure to the capital-intensive ride-hailing business while retaining a significant minority stake, potentially allowing e& to focus on its core telecom and enterprise digital services.
What the Results Mean for Investors and Industry Watchers
For investors: The Vodafone disposal creates a AED 4.8 billion net cash gain that could be deployed toward a special dividend, share buyback, or acquisitions in high-growth digital sectors. Watch for capital allocation announcements in the next earnings call. The UAE subscriber growth of 6.4% and the 13.1% EBITDA rise suggest that domestic ARPU and margin trends remain healthy, underpinning the dividend capacity.
For competitors: e&’s strong cash position and 251.5-million-strong subscriber base raise the stakes in any bid for regional digital infrastructure or enterprise service contracts. Incumbents in Middle East and African markets should anticipate more aggressive investment from the group now that Vodafone ties are severed.
For tech partners: The Careem-Uber transaction signals that e& is willing to co-invest and then partially exit to strategic partners, making it a more flexible joint venture counterpart. AI-driven service providers looking for a regional telecom gateway can point to e&’s explicit commitment to “differentiated AI-enhanced digital experiences.”
Key dates: H2 2026 results are likely in February 2027. The group may provide an investor update on the use of Vodafone proceeds before year-end.
Risk & Opportunity Assessment
| Commercial Risk | Low | Diversified revenue streams across telecom and digital services, strong cash generation (EBITDA margin 46.5%), and the AED 4.8 bn net gain from Vodafone exit provide substantial cushion against demand shocks. |
| Competitive Risk | Medium | Telecom markets remain highly competitive on price and digital services; rivals could erode margins if e& fails to differentiate through AI-enhanced products. The Vodafone exit also removes a potential partnership lever in Europe. |
| Regulatory Risk | Low | Operating primarily in the supportive UAE regulatory environment; international operations could face local compliance challenges, but no specific adverse regulatory action is indicated. |
| Reputation Risk | Low | Strong brand in the UAE and no public controversies associated with the reported transactions or operational metrics. |
| Technology Disruption | Medium | AI and digital transformation are central to the stated strategy; failure to execute or keep pace with rapid tech shifts could undermine the premium service positioning, though the Careem-Uber deal shows pragmatic partnership approach. |
| Commercial Opportunity | High | The Vodafone sale unlocks AED 21.9 bn in dry powder for growth investments in AI, digital infrastructure, or international expansion. The strong subscriber growth and margin profile make the group an attractive consolidator. |
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