du Q1 profit jumps 19.8% on strong revenue growth, margin expansion

Emirates Integrated Telecommunications Company (du) reported its first-quarter results for 2025, with strong growth across revenues, margins and profitability, driven by performance across both service and non-service segments.

Total revenues rose 7.4 per cent year-on-year to Dhs3.8bn, while EBITDA surged 15 per cent to Dhs1.8bn, resulting in a margin of 47.4 per cent.

The company said the growth was underpinned by an improved revenue mix and cost efficiency measures.

Net profit rose 19.8 per cent to Dhs722m, with a net margin of 18.8 per cent. The company cited disciplined execution of strategy, positive interest results and strong operational performance as key contributors.

Good start to the year: du CEO

“We started the year with a very strong first quarter, delivering growth across all key financial metrics and making meaningful progress on our strategy to diversify revenue streams, as witnessed by the strategic partnership with Microsoft to develop a hyperscale data centre,” said du CEO Fahad Al Hassawi.

“The resilient UAE environment coupled with the quality of our offerings and our ability to respond to evolving customer needs contributed to the solid growth in our subscriber base, with our mobile base now exceeding the 9 million mark and our revenues witnessing a remarkable 7.4 per cent growth,” he added.

Al Hassawi said the company achieved “strong margin expansion” as EBITDA margin rose to 47.4 per cent and reiterated full-year guidance, citing confidence in continued momentum.

He noted the company’s balance sheet remains robust, supported by strong cash generation and normalisation of capital expenditure.

Revenues on the rise

Mobile service revenues rose 7.4 per cent year-on-year to Dhs1.7bn, supported by a growing customer base and higher ARPU through improved product mix and personalised offerings.

Fixed service revenues climbed 10.2 per cent to Dhs1.1bn, attributed to rising fibre penetration and the success of home wireless and enterprise connectivity solutions.

Other revenues grew 4.8 per cent to Dhs1.1bn, led by expansion in ICT and higher inbound roaming and interconnection revenues. Lower handset sales, due to a high comparison base from Q1 2024, partly offset the gains.

Capex for the quarter stood at Dhs377m, slightly up from Dhs359m a year earlier, representing a capex intensity of 9.8 per cent.

The company said it remains focused on 5G densification, fibre expansion and ICT development, along with IT system transformation to enhance network quality and customer experience.

Operating free cash flow increased 17.9 per cent to Dhs1.4bn, driven by strong EBITDA growth.

At a glance

Dhs million	Q1 2025	Q1 2024	Change
Revenues	3,848	3,581	7.4%
Service revenues	2,780	2,563	8.5%
Other revenues	1,067	1,018	4.8%
EBITDA	1,824	1,586	15%
EBITDA Margin (%)	47.4%	44.3%	+3.1pp
Net profit	722	603	19.8%
Capex	377	359	5%
Capital intensity (%)	9.8%	10.0%	-0.2pp
Operating Free Cash Flow	1,447	1,228	17.9%