UAE telco EITC (du)sees net profit rise 31.2% in Q2 2023
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UAE telco du sees Q2 net profit rise 31.2%

UAE telco du sees Q2 net profit rise 31.2%

On the basis of the Q2 2023 results, the company’s board of directors has approved the distribution of an interim half year cash dividend of Dhs0.13 per share

ETIC reports Q2 2023 results Image: Du EITC

Emirates Integrated Telecommunications Company (EITC), also known as du, has reported an impressive 31.2 per cent increase in net profit for the quarter ended on June 30.

The UAE’s second licensed telecom operator, EITC operates under two brands: du and Virgin Mobile. It is listed on the Dubai Financial Market and trades under the ‘DU’ ticker.

On the back of strong demand for postpaid mobile and fixed services, the company’s service revenues grew by 8.9 per cent, supporting the growth of total quarterly revenue to reach Dhs3.35bn.

Key EITC (du) Q2 performance highlights

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 20 per cent to Dhs1.52bn and net profit jumped by 31.2 per cent to Dhs397m.

Operating free cash flow (EBITDA – Capex) grew by 43.3 per cent to Dhs1bn.

The company’s mobile customer base grew 8 per cent year-on-year (YoY) to eight million subscribers while tapering over the quarter. Its unlimited data plans and growing demand from the enterprise sector delivered the eighth consecutive quarter of postpaid net-additions (13,000).

The company’s prepaid customer base grew 7.4 per cent YoY to register 6.5 million customers, despite declining over the quarter reflecting the typical seasonality impact.

The fixed offering continued its growth with 559,000 broadband customers, representing 18.3 per cent growth YoY. The continued expansion of its fibre network and the focused execution of its broadband strategy supported another quarter of steady performance.

Capex spend was Dhs506m (capital intensity of 15.1 per cent) directed towards 5G deployment, expanding the fibre network and ongoing IT transformation.

Malek Al Malek, chairman EITC, said: “Amid the burgeoning UAE economy and robust non-oil sector performance, we have persevered in sustaining our momentum, yielding an exceptional array of results. I take great pride in our proactive and dynamic commercial strategy, coupled with our unwavering dedication to excellence that has catalysed the company to ascend to new heights and spurred strong performance across all key financial indicators. We remain committed to continuously improving our operational efficiencies and advancing our transformation projects, both of which are integral to our ongoing success. Considering these factors and our solid performance, it is with pleasure that I announce the board of directors’ approval of an interim half-year cash dividend distribution of Dhs0.13 per share.”

Fahad Al Hassawi, EITC CEO, said: “The strong demand for our ‘Unlimited Data Power Plans’, has allowed us to add 13,000 mobile postpaid customers during this period. Furthermore, we have consistently expanded our broadband customer base by acquiring over 5,000 home wireless and fibre clients, demonstrating our ability to excel in a rapidly evolving business environment.

“Our strategic, commercial and investment initiatives have yielded a high growth of 8.9 per cent in our service revenues, making a significant contribution to our improved EBITDA and overall profitability.  This success is a testament to our continuous commitment to creating shareholder value for our shareholders through enhanced profitability and a stronger market position. We remain resolute in our disciplined cost management approach and our dedication to investing in high-growth opportunities. This unwavering focus drives our transformation journey as a digital-first telecom operator, committed to delivering an unparalleled customer experience. I take immense pride in our sustained commercial vitality and the role it plays in achieving our goals.”

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