Group chief financial officer at e&, Karim Bennis, speaks to Economy Middle East about building a financially robust organization strategically positioned to empower operational agility and drive sustainable growth for years to come.
e& has reported a record-breaking financial performance, with a consolidated net profit of AED10.8 billion and a 10.1 percent revenue increase in 2024. From a financial leadership perspective, what were the key factors that drove this growth, and how do you plan to sustain it in an evolving economic landscape?
e&’s 5-year record-breaking financial results are a powerful testament to the bold vision and dynamic strategy driving our performance. At the heart of our achievements is a relentless focus on digital transformation, strategic diversification, and global expansion, all while reinforcing our leadership in our UAE home market.
By embracing digitization and pioneering next-generation technologies, we’re leveraging our telco roots to transform and become a global tech powerhouse. Our strategy to move beyond traditional connectivity and tap into high-growth sectors, both regionally and internationally, has unlocked new opportunities and created long-term value.
This momentum is fueled by the passion and expertise of our people, whose commitment has been central to delivering our standout financial results.
Read: e& crowned world’s fastest growing brand as valuation reaches $15.3 billion
In 2024, we delivered exceptional results: AED 59.2 billion in revenue, AED 26.5 billion in EBITDA, and a record-breaking AED 10.8 billion in net profit. Operating cash flow reached AED 18.2 billion, representing 31 percent of total revenue. The real story goes beyond the financials, as this was a year of transformation and the result of a clear and bold vision and disciplined execution.
Our telecom operations achieved a robust 49 percent EBITDA margin, solidifying our financial strength and earning us best-in-class investment-grade ratings of AA- by S&P Global and Aa3 by Moody’s.
Our strategy is about challenging the status quo, finding the right balance between investing for future growth and maintaining a disciplined financial approach: Fueling growth when it counts, sharpening operations with precision, and maximizing our ROI.
And we carried that momentum into the first quarter of 2025 and carved out a story of clarity and audacity. Q1 results speak for themselves:
Subscribers: 194.8 million, up 12.9 percent
Revenue: AED 16.9 billion, up 18.7 percent YoY
EBITDA: AED 7.4 billion, up 15.4 percent
Net profit: AED 5.4 billion, up 129.9 percent
Operating free cash flow cash flow: AED 5.7 billion, with a 34 percent margin (excluding spectrum)
These figures aren’t just performance metrics — they reflect our ability to turn one in every three dirhams of revenue into cash. Our decision to monetize our 40 percent stake in Khazna Data Centers was a calculated move to free up capital, strengthen our balance sheet, and maintain our focus on investing in our core telecom infrastructure and digital technologies.
I see numbers as only the outcome , never the input. And this quarter’s numbers are no exception. They come from our committed international teams who dare every day to chart blue oceans where bold ideas and execution create enduring value.
Today, our reach spans nearly 195 million subscribers across the globe. A powerful, diversified portfolio led by our core telecom business. Through e& international, we provide high standard connectivity across 19 global markets while branching into new frontiers of growth and innovation.
All while targeted investments in 5G, AI-powered network optimization, and cutting-edge infrastructure in our home market continue to give us a technological edge in a fast-moving industry.
The UAE continues to shine on the global stage, ranked among the fastest countries for mobile speeds, boasting the world’s fastest 5G network, the world’s fastest mobile network, and the GCC’s fastest fixed network.
Beyond telecom, we are reshaping the digital landscape. e& money has become the UAE’s fastest-growing digital wallet, reflecting our leadership in the shift toward a cashless economy. e& enterprise is making waves in cloud services, cybersecurity, IoT, and AI-powered automation, empowering businesses and governments to advance in a digital-first era.
Strategic acquisitions have propelled us even further. Our majority acquisition of PPF Telecom’s assets expanded our presence into Central and Eastern Europe, connecting millions more to our ecosystem. Our strategic stake in Careem Everything App also unlocks new possibilities for collaboration and value creation.
Throughout this journey, we have maintained unwavering financial discipline. Through data analytics, operational efficiency and a focus on cash generation, we’ve scaled smartly while optimizing costs keeping us agile and resilient in an ever-changing landscape.
Looking ahead, we’re just getting started. We are doubling down on AI and digital services, building stronger global partnerships, and anticipating the trends that will shape the future of connectivity.
As we continue to raise the bar, we remain deeply committed to creating lasting value for our customers, shareholders, and the communities we serve.
e& has been making significant investments in AI, including a collaboration with IBM on AI governance and launching AI-powered solutions for SMBs. As GCFO, how do you balance the capital allocation for these innovations while ensuring sustainable financial returns?
At e&, financial success is more than just numbers; it’s about making bold, forward-thinking decisions that unlock sustainable, long-term value. Our capital allocation strategy is built on a careful balance of innovation and financial foresight, ensuring we invest where the future is being shaped while preserving the strength of our balance sheet and profitability.
When it comes to AI, we assess investments through a structured framework: Strategic fit, scalability, risk management, and financial return. The collaboration with IBM on AI governance, for example, is about building trust and competitive advantage in AI-driven services.
We pair this innovation-driven mindset with disciplined cost management. Every dirham invested in AI must deliver measurable value whether through monetization, operational efficiency, or strengthening our core telecom and technology capabilities.
Our commitment to AI isn’t theoretical; it’s already transforming experiences on the ground. In the UAE, we introduced the “EASE” autonomous retail experience powered by AI, machine learning, facial recognition, robotics, and smart infrastructure. “EASE” reimagines how customers interact with our products and services, offering a seamless, futuristic shopping journey.
We also know that collaboration is key to staying ahead. As a founding member of the Global Telco AI Alliance, alongside SK Telecom, Deutsche Telekom, Singtel, and SoftBank, e& is leading the charge in developing a multilingual Telco-specific Large Language Model (Telco LLM). This joint venture is designed to redefine how telecoms leverage AI and tailor it for the unique demands of the industry.
Our proactive approach to partnerships and tech adoption is underpinned by a disciplined focus on operational efficiency and smart capital deployment. We’re becoming our own disruptors. Thanks to our strong financial position, we can confidently invest in high-growth, high-impact areas like AI without compromising resilience.
With a progressive dividend policy and a focus on capital efficiency, how do you balance reinvestment in growth with delivering shareholder value?
Creating lasting value for shareholders while fueling long-term growth demands more than ambition; it requires a precise balance of financial discipline and bold reinvestment. At e&, this strategic equilibrium is embedded in our DNA.
Our strategy combines a progressive dividend policy with efficient capital management and forward-focused investments, all aimed at securing future cash flow and profitable growth.
At the core of this approach is an unwavering commitment to delivering consistent, growing value to shareholders. Our planned dividend increase from AED 0.80 per share in 2023 to AED 0.89 per share by 2026 goes beyond just a number; it’s a powerful signal of our confidence in generating sustainable returns while continuing to invest in the opportunities that will define the future.
Every capital decision is guided by discipline and intent. Whether it’s new technologies, enterprise-scale services, or international expansion, our investments are strategically aligned to generate long-term value and strengthen our global footprint.
Reinvestment is the engine of our future. We continue to double down on high-growth domains like 5G, fiber, cloud computing, cybersecurity, and AI-driven digital solutions where our capabilities and market vision intersect to realize value.
At the same time, strategic asset monetization, like the recent $2.2 billion Khazna transaction, enhances our financial flexibility, supporting both deleveraging and bold reinvestment maintaining an attractive net debt to EBITDA ratio which as of March 2025 is at 0.88x and confirming our robust credit rating.
This balanced, forward-looking approach is further reinforced by strong governance. We ensure capital is deployed efficiently and risks are proactively managed, whether from currency volatility, inflationary headwinds, or regulatory shifts.
Through smart cost optimization, financial hedging, and a diversified portfolio, we’ve built a resilient platform capable of weathering market fluctuations while delivering solid returns.
Ultimately, shareholder value isn’t just about direct returns; it’s about building a financially robust, operationally agile, and strategically positioned company that can drive sustainable growth for years to come.
e& has consistently maintained strong investor confidence. What are the key factors that drive market trust in the group’s financial strategy?
Investor confidence in e& is built on more than performance. It’s driven by a proven track record, disciplined execution, and a consistent ability to deliver in dynamic, high-growth markets. At every level, we are focused on one clear goal: Maximizing long-term shareholder value.
Our progressive dividend policy reflects this commitment, providing reliable and growing returns. At the same time, we’re investing decisively in the technologies shaping tomorrow: 5G, cloud, cybersecurity, and fintech, laying the groundwork for continued expansion and future value creation.
A key pillar of investor trust lies in our strategic diversification. With a significant share of revenue now generated from markets beyond the UAE and a growing presence in non-telecom sectors, e& has successfully broadened both its geographical reach and its portfolio.
This diversification boosts resilience and shields us from volatility in any single market or industry, providing a level of immunity from macroeconomic headwinds while capturing new opportunities. Our strong financial foundation reinforces this confidence.
With $12 billion cash balance in March 2025, we have the agility to capitalize on new opportunities while staying protected against external risks. Strategic moves such as the acquisition of a controlling stake in PPF Telecom and the $2.2 billion monetization of Khazna demonstrate our ability to realize value, enhance financial flexibility, and validate the group’s strategic direction.
We don’t just meet expectations; we surpass them. e& has consistently outperformed its financial guidance, with regular upgrades that underscore our precision, agility, and commitment to delivering results.
This track record of exceeding market expectations strengthens investor trust and highlights our ability to adapt and thrive in a challenging environment.
Strong governance, transparency and rigorous risk management are embedded in everything we do. Our disciplined approach ensures that capital is allocated wisely, risks are anticipated and mitigated, and shareholder interests remain at the heart of our decision-making.
Financial performance can be impacted by external risks and market shifts. What are the key financial risks to watch for in 2025, and how is e& preparing for them?
As we navigate the remainder of 2025, e& remains sharply focused on managing external risks and market volatility with resilience, agility, and foresight. While the global landscape continues to evolve, our strategy is built to withstand disruption and seize opportunity.
Inflation remains a key challenge, particularly in markets such as Egypt and Pakistan, where double-digit rates are placing pressure on both consumers and operations. We’re tackling this head-on by actively monitoring market dynamics and adjusting pricing strategies to protect margins while maintaining value for our customers.
Currency volatility is another area of vigilance. Devaluations in key markets like Egypt have had an impact, but our ongoing expansion into strong currencies (Euro), particularly in Central and Eastern Europe, is helping mitigate and dilute the weight of the volatile markets.
Thanks to our solid balance sheet and broad geographic diversification, we maintain the flexibility to adapt operations and protect financial stability.
Regulatory changes are a constant in the telecom and tech sectors. We stay ahead by working hand-in-hand with regulators to ensure compliance and business continuity. Our business model is designed to adapt quickly to changing regulatory landscapes minimizing disruption while ensuring long-term alignment.
In today’s interconnected world, geopolitical uncertainty poses real risks from disrupted supply chains to shifts in investment flows. While we can’t control these dynamics, our global presence and strong strategic partnerships offer critical insulation against region-specific shocks.
At the same time, technology and cybersecurity remain top investment priorities. As AI advances and cyber threats grow more sophisticated, we are proactively reinforcing our digital infrastructure to ensure operational resilience and business continuity across all markets.
Our OpCos strategy is also driving impactful local transformation. In Morocco, for example, we recently reaffirmed our commitment to national digital advancement through a strategic partnership between Maroc Telecom and Inwi.
This includes the creation of joint ventures related to future FiberCo and TowerCo, which will accelerate the rollout of fiber optics and 5G infrastructure solidifying Morocco’s position as a regional digital leader.
Looking ahead, we’re not just bracing for uncertainty; we’re preparing to thrive through it. By maintaining a strong liquidity position, managing debt with discipline, and staying nimble in our capital allocation, e& is fully equipped to navigate the challenges and opportunities of 2025. We are confident in our resilience, ability to deliver our objectives, and agility to maintain strong momentum.
What advice would you give to companies navigating today’s economic uncertainty while maintaining financial strength and investor confidence?
In today’s volatile world, performance, market conditions, and even competitive advantages can shift in an instant. The only true constant is the ability to generate cash flows. But even that, while essential, is just the starting point.
The companies that thrive are the ones that are prepared to confront the upcoming challenges and act with precision, urgency, and discipline.
First, financial strength is not enough. Having a strong balance sheet is critical, but it is only a foundation, not a guarantee of future success. Instead of taking their performance as granted, companies must treat it as something that needs constant care, adaptation, and dedication. Just as we safeguard valuable assets, we must actively preserve and strengthen our market position every day.
Second, reset the clock daily. The biggest risk in uncertain times is complacency. Organizations like ours must operate with a mindset that assumes nothing is permanent. This means questioning strategies, revisiting assumptions, and staying hyper-aware of potential risks.
Leaders should instil a culture “where the only constant in life is change” and hence remain agile because that’s what drives resilience and performance.
I have been privileged to work closely with our group CEO, Hatem Dowidar, who has trusted me and provided autonomy and a laser-sharp vision with strategic clarity and impeccable execution. His leadership has been pivotal in driving the transformation of the group and continues to challenge the status quo.
Finally, investor confidence comes from discipline, not just results. And hence we must live up to our role as the economic guardians of the company.
Investors don’t just look at numbers; they look at how a company proactively manages its challenges while still delivering its commitments. Are you proactive? Are you disciplined in capital allocation? Are you making bold but responsible moves? Are you maximizing the return on your assets?
Confidence isn’t built on past success; it’s a living asset we must earn every day through consistency, forward-thinking execution and bold decisions.
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