Financial
Statements
Emirates Telecommunications Group Company PJSC
Consolidated statement of profit or loss
for the year ended 31 December 2023|
Notes |
2023 AED’000 |
2022 AED’000 |
|
|
Revenue |
6 (a) |
53,752,118 |
52,434,227 |
|
Operating expenses |
7 (a) |
(34,371,770) |
(33,323,052) |
|
Impairment loss on trade receivables and contract assets |
35 (b) |
(899,830) |
(803,470) |
|
Impairment loss on other assets - net |
12(a) |
(80,896) |
(2,756) |
|
Share of results of associates and joint ventures |
16 |
761,035 |
417,358 |
|
Operating profit before federal royalty |
19,160,657 |
18,722,307 |
|
|
Federal royalty |
7 (b) |
(6,328,722) |
(5,770,893) |
|
Operating profit |
12,831,935 |
12,951,414 |
|
|
Finance and other income |
8 |
3,794,661 |
2,000,601 |
|
Finance and other costs |
9 |
(3,928,152) |
(2,674,340) |
|
Profit before tax |
12,698,444 |
12,277,675 |
|
|
Income tax expenses |
10 |
(1,554,234) |
(1,751,977) |
|
Profit for the year |
11,144,210 |
10,525,698 |
|
|
Profit attributable to: |
|||
|
Owners of the Company |
10,304,547 |
10,007,361 |
|
|
Non-controlling interests |
15(c) |
839,663 |
518,337 |
|
11,144,210 |
10,525,698 |
||
|
Earnings per share |
|||
|
Basic and diluted |
39 |
AED 1.18 |
AED 1.15 |
Emirates Telecommunications Group Company PJSC
Consolidated statement of profit or loss and other comprehensive income
for the year ended 31 December 2023|
Notes |
2023 AED’000 |
2022 AED’000 |
|
|
Profit for the year |
11,144,210 |
10,525,698 |
|
|
Other comprehensive income / (loss) |
|||
|
Items that will not be reclassified to profit or loss: |
|||
|
Remeasurement of defined benefit obligations - net of tax |
(3,055) |
20,398 |
|
|
Share of other comprehensive gain/(loss) of associates and joint ventures – net of tax |
(5,330) |
8,947 |
|
|
Loss on revaluation of financial assets |
(2,496,841) |
(5,724,804) |
|
|
Items that are or may be reclassified subsequently to profit or loss: |
|||
|
Exchange differences on translation of foreign operations |
(583,212) |
(5,260,477) |
|
|
(Loss)/gain on net investment hedge |
28,34 |
(306,799) |
545,895 |
|
Fair value gain arising on cash flow hedges |
28 |
(82,738) |
209,110 |
|
Cumulative gain transferred to profit or loss on deconsolidation of a subsidiary |
(63,775) |
- |
|
|
Share of other comprehensive income of associates and joint ventures – net of tax |
(21,633) |
33,672 |
|
|
Total other comprehensive loss |
(3,563,383) |
(10,167,259) |
|
|
Total comprehensive income for the year |
7,580,827 |
358,439 |
|
|
Total comprehensive income/(loss) attributable to: |
|||
|
Owners of the Company |
7,295,533 |
1,637,852 |
|
|
Non-controlling interests |
285,294 |
(1,279,413) |
|
|
7,580,827 |
358,439 |
Emirates Telecommunications Group Company PJSC
Consolidated statement of financial position
as at 31 December 2023|
Notes |
2023 AED’000 |
2022 AED’000 |
|
|
Non-current assets |
|||
|
Goodwill and other intangible assets |
11 |
23,411,594 |
22,339,232 |
|
Property, plant and equipment |
13 |
39,335,942 |
39,925,299 |
|
Right-of-use assets |
14 |
1,680,979 |
1,781,560 |
|
Investments in associates and joint ventures |
17 |
8,977,802 |
8,266,101 |
|
Other investments |
18 |
19,795,521 |
15,715,504 |
|
Trade and other receivables |
21 |
499,896 |
446,248 |
|
Finance lease receivables |
23 |
1,442,979 |
1,138,181 |
|
Derivative financial instruments |
28 |
39,249 |
208,220 |
|
Contract assets |
22 |
537,658 |
556,768 |
|
Deferred tax assets |
10(d) |
395,953 |
220,111 |
|
96,117,573 |
90,597,224 |
||
|
Current assets |
|||
|
Inventories |
20 |
1,090,185 |
972,875 |
|
Trade and other receivables |
21 |
16,397,865 |
15,647,768 |
|
Current income tax assets |
491,065 |
484,686 |
|
|
Finance lease receivables |
23 |
152,443 |
195,533 |
|
Due from related parties |
19 |
74,362 |
112,319 |
|
Contract assets |
22 |
2,545,688 |
1,824,918 |
|
Other investments |
18 |
743,162 |
2,407,143 |
|
Derivative financial instruments |
28 |
67,550 |
3,357 |
|
Cash and bank balances |
24 |
28,989,387 |
32,839,482 |
|
Assets held for sale |
|
234,975 |
- |
|
50,786,682 |
54,488,081 |
||
|
Total assets |
146,904,255 |
145,085,305 |
|
|
Non-current liabilities |
|||
|
Trade and other payables |
25 |
1,763,257 |
1,247,240 |
|
Borrowings |
27 |
35,850,092 |
24,209,643 |
|
Payables related to investments and licenses |
29 |
236,379 |
302,250 |
|
Deferred tax liabilities |
10(d) |
1,765,746 |
1,645,275 |
|
Lease liabilities |
30 |
2,894,144 |
2,602,977 |
|
Provisions |
31 |
367,092 |
381,677 |
|
Provision for employees’ end of service benefits |
32 |
1,194,245 |
1,166,134 |
|
Contract liabilities |
26 |
91,805 |
97,855 |
|
44,162,760 |
31,653,051 |
||
|
Current liabilities |
|||
|
Trade and other payables |
25 |
29,543,734 |
30,583,955 |
|
Contract liabilities |
26 |
2,851,049 |
2,991,721 |
|
Borrowings |
27 |
13,190,573 |
23,744,566 |
|
Payables related to investments and licenses |
29 |
15,024 |
13,686 |
|
Current income tax liabilities |
291,890 |
415,036 |
|
|
Lease liabilities |
30 |
568,557 |
542,233 |
|
Provisions |
31 |
5,039,163 |
5,028,677 |
|
Deferred tax liabilities |
10(d) |
3,918 |
- |
|
Derivative financial instruments |
28 |
25,695 |
- |
|
Provision for employees’ end of service benefits |
32 |
138,189 |
113,280 |
|
51,667,792 |
63,433,154 |
||
|
Total liabilities |
95,830,552 |
95,086,205 |
|
|
Equity |
|||
|
Share capital |
33 |
8,696,754 |
8,696,754 |
|
Reserves |
34 |
17,364,905 |
20,240,124 |
|
Retained earnings |
16,596,235 |
13,326,978 |
|
|
Equity attributable to the owners of the Company |
42,657,894 |
42,263,856 |
|
|
Non-controlling interests |
15(c) |
8,415,809 |
7,735,244 |
|
Total equity |
51,073,703 |
49,999,100 |
|
|
Total liabilities and equity |
146,904,255 |
145,085,305 |
Emirates Telecommunications Group Company PJSC
Consolidated statement of changes in equity
for the year ended 31 December 2023|
Notes |
Attributable to owners of the Company |
Non-controlling interests AED’000 |
Total AED’000 |
||||
|
Share capital AED’000 |
Reserves AED’000 |
Retained earnings AED’000 |
Owners’ AED’000 |
||||
|
Balance at 1 January 2022 |
8,696,754 |
28,598,188 |
10,291,094 |
47,586,036 |
9,977,786 |
57,563,822 |
|
|
Profit for the year |
- |
- |
10,007,361 |
10,007,361 |
518,337 |
10,525,698 |
|
|
Other comprehensive income/(loss) for the year |
- |
(8,399,796) |
30,287 |
(8,369,509) |
(1,797,750) |
(10,167,259) |
|
|
Total comprehensive income for the year |
- |
(8,399,796) |
10,037,648 |
1,637,852 |
(1,279,413) |
358,439 |
|
|
Other movements in equity |
- |
(368) |
(5,268) |
(5,636) |
(12,321) |
(17,957) |
|
|
Transfer to reserves |
- |
87,102 |
(87,102) |
- |
- |
- |
|
|
Transfer of fair value reserve of equity instruments designated at FVTOCI |
- |
(45,002) |
45,002 |
- |
- |
- |
|
|
Transactions with owners of the Company: |
|||||||
|
Acquisition of a subsidiary |
41.2 |
- |
- |
- |
- |
218,232 |
218,232 |
|
Dividends |
|
- |
- |
(6,954,396) |
(6,954,396) |
(1,169,040) |
(8,123,436) |
|
Balance at 31 December 2022 |
8,696,754 |
20,240,124 |
13,326,978 |
42,263,856 |
7,735,244 |
49,999,100 |
|
|
Balance at 1 January 2023 |
8,696,754 |
20,240,124 |
13,326,978 |
42,263,856 |
7,735,244 |
49,999,100 |
|
|
Profit for the year |
- |
- |
10,304,547 |
10,304,547 |
839,663 |
11,144,210 |
|
|
Other comprehensive income / (loss) for the year |
- |
(3,011,124) |
2,110 |
(3,009,014) |
(554,369) |
(3,563,383) |
|
|
Total comprehensive income for the year |
- |
(3,011,124) |
10,306,657 |
7,295,533 |
285,294 |
7,580,827 |
|
|
Other movements in equity |
- |
- |
14,645 |
14,645 |
265,541 |
280,186 |
|
|
Transfer to reserves |
- |
135,905 |
(135,905) |
- |
- |
- |
|
|
Transactions with owners of the Company: |
|||||||
|
Acquisition of a subsidiary |
41.1 |
- |
- |
38,256 |
38,256 |
860,560 |
898,816 |
|
Dividends |
- |
- |
(6,954,396) |
(6,954,396) |
(730,830) |
(7,685,226) |
|
|
Balance at 31 December 2023 |
8,696,754 |
17,364,905 |
16,596,235 |
42,657,894 |
8,415,809 |
51,073,703 |
|
Emirates Telecommunications Group Company PJSC
Consolidated statement of cash flows
for the year ended 31 December 2023|
Notes |
2023 AED’000 |
2022 AED’000 |
|
|
Operating profit |
12,831,935 |
12,951,414 |
|
|
Adjustments for: |
|||
|
Depreciation |
5,966,695 |
5,794,766 |
|
|
Amortisation |
1,847,393 |
1,854,270 |
|
|
Impairment loss on other assets - net |
80,896 |
2,756 |
|
|
Share of results of associates and joint ventures |
(761,035) |
(417,358) |
|
|
Provisions and allowances |
(564,684) |
(768,293) |
|
|
Unrealised currency translation loss/(gain) |
110,608 |
536,686 |
|
|
Operating cash flows before changes in working capital |
19,511,808 |
19,954,241 |
|
|
Changes in: |
|||
|
Inventories |
(123,376) |
(292,095) |
|
|
Due from related parties |
53,635 |
(30,293) |
|
|
Trade and other receivables including contract assets |
(1,520,431) |
(2,581,546) |
|
|
Trade and other payables including contract liabilities |
(683,823) |
4,037,631 |
|
|
Cash generated from operations |
17,237,813 |
21,087,938 |
|
|
Income tax expenses paid |
(1,916,232) |
(1,841,221) |
|
|
Payment of employees’ end of service benefits |
(115,717) |
(112,216) |
|
|
Net cash generated from operating activities |
15,205,864 |
19,134,501 |
|
|
Cash flows from investing activities |
|||
|
Proceeds from disposal of investments at amortised cost |
1,103,291 |
349,367 |
|
|
Acquisition of investments at amortised cost |
(4,039,630) |
(575,536) |
|
|
Acquisition of subsidiaries (net of cash and bank balances acquired) |
(85,962) |
(224,015) |
|
|
Acquisition of investments classified as fair value through profit or loss |
(266,894) |
(1,549,577) |
|
|
Proceeds from disposal of investments classified as fair value through profit or loss |
1,583,802 |
366,997 |
|
|
Acquisition of investments classified as fair value through other comprehensive income ("OCI") |
(3,857,914) |
(18,688,232) |
|
|
Proceeds from disposal of investments classified as fair value through OCI |
497,979 |
61,838 |
|
|
Acquisition of interest in an associate |
(220,350) |
(638,889) |
|
|
Net cash outflow on deconsolidation of a subsidiary |
(2,957) |
- |
|
|
Purchase of property, plant and equipment |
(6,039,615) |
(6,747,423) |
|
|
Proceeds from disposal of property, plant and equipment |
105,741 |
67,201 |
|
|
Purchase of intangible assets |
(1,247,874) |
(1,289,877) |
|
|
Proceeds from disposal of intangible assets |
28,532 |
898 |
|
|
Dividend income received from associates, joint ventures and other investments |
1,465,197 |
334,570 |
|
|
Term deposits made with maturities over three months |
(11,616,436) |
(32,373,123) |
|
|
Term deposits matured with maturities over three months |
22,436,921 |
11,180,517 |
|
|
Cash flows from unwinding of derivative financial instruments - net |
(23,150) |
22,323 |
|
|
Finance and other income received |
2,262,256 |
1,241,615 |
|
|
Net cash (used in)/generated from investing activities |
2,082,937 |
(48,461,346) |
|
|
Cash flows from financing activities |
|||
|
Proceeds from borrowings |
27(c) |
26,410,721 |
30,439,982 |
|
Repayments of borrowings |
27(c) |
(25,160,947) |
(6,646,006) |
|
Payments of lease liabilities |
27(c) |
(1,043,937) |
(707,205) |
|
Dividends paid |
(7,676,917) |
(8,035,146) |
|
|
Finance and other costs paid |
(3,127,621) |
(1,431,103) |
|
|
Net cash generated from/(used in) financing activities |
(10,598,701) |
13,620,522 |
|
|
Net (decrease)/increase in cash and cash equivalents |
6,690,100 |
(15,706,323) |
|
|
Cash and cash equivalents at the beginning of the year |
3,202,195 |
19,911,520 |
|
|
Effect of foreign exchange rate changes |
280,291 |
(1,003,002) |
|
|
Cash and cash equivalents at the end of the year |
24 |
10,172,586 |
3,202,195 |
