Etihad Etisalat stock rises on strong first quarter results

Published 19/02/2025, 11:42
© Reuters.

Investing.com -- Etihad Etisalat shares climbed 3.7% following a robust first quarter that saw the company surpassing revenue and earnings expectations significantly.

The telecom giant reported a roughly 41% and 29% beat on reported and clean earnings per share (EPS), respectively, buoyed by a 2.3% increase in revenue and significant savings in selling, general, and administrative expenses (SG&A).

The improved financial performance was partly attributed to substantial SG&A efficiencies, which led to a clean EBITDA margin that was 200 basis points above consensus estimates.

Additionally, the company announced a second-half dividend of SAR1.30 per share, which is 20% and 4% higher than Bloomberg consensus. This indicates a payout ratio of 55% to 63% on reported and clean earnings, an increase from 53% in the first half of the year.

Investors’ focus has now shifted to the fiscal year 2025, where Etihad Etisalat’s dividend expectations are set at SAR2.60, standing 9% above the consensus.

The forecasted dividend yield (DY) for the fiscal year 2024 is 3.9%, reflecting the company’s strong cash flow and commitment to shareholder returns.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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