Emirates Integrated Telecommunications Company PJSC (“du”) published its financial results for the nine-month period ended 30 September 2019, reporting Revenues of AED 9.4 billion, an EBITDA of AED 4.22 billion and a Net Profit after royalty of AED 1.29 billion.
For Q3 2019, EITC reported revenues of AED 3.07 billion, an EBITDA of AED 1.33 billion and a net profit after royalty of AED 381 million.
2019 Q3 and first 9 months major KPIs
| (AED million) |
Third Quarter |
Year to Date |
||||
|
Q3 2018 |
Q3 2019 |
% change |
YTD 2018 |
YTD 2019 |
% change |
|
|
Revenues |
3,331 |
3,067 |
-7.9% |
10,013 |
9,396 |
-6.2% |
|
Fixed revenues |
579 |
623 |
7.7% |
1,723 |
1,851 |
7.5% |
|
Mobile revenues |
1,779 |
1,605 |
-9.8% |
5,398 |
4,956 |
-8.2% |
|
Other revenues |
973 |
838 |
-13.9% |
2,892 |
2,588 |
-10.5% |
|
EBITDA |
1,369 |
1,332 |
-2.7% |
4,231 |
4,224 |
-0.2% |
|
Adjusted EBITDA (like-for-like) |
1,453 |
1,332 |
-8.3% |
4,297 |
4,224 |
-1.7% |
|
Net Profit after royalty |
441 |
381 |
-13.5% |
1,406 |
1,294 |
-7.9% |
|
Adjusted Net Profit after royalty (like-for-like) |
428 |
381 |
-11.0% |
1,249 |
1,294 |
3.7% |
|
Mobile subscriber base (thousands) |
8,650 |
7,736 |
-10.6% |
8,650 |
7,736 |
-10.6% |
|
Fixed subscriber base (thousands) |
760 |
771 |
1.5% |
760 |
771 |
1.5% |
Commenting on the results, Osman Sultan, EITC’s chief executive officer, said, “I am pleased to report for the first nine months of the 2019 year a 3.7% growth in our adjusted (like-for-like) Net Profit after royalty which reached AED 1.29 billion. We were able to achieve this result despite several challenges in our market where certain of our business lines which reached maturity are subject to pressure on their top line. During the first 9 months of the year we were able to report a total revenues of AED 9.4 Billion driven by a healthy increase of 7.5% in our fixed business revenues that absorbed part of the 8.2% decline in mobile revenues.
“Our fixed business continues to register regular growth of the subscriber base which reached 771 thousands, an increase of 1.5%. We continue to focus our efforts on attracting high value post-paid mobile customers to improve the mix of our mobile subscriber base amounting to 7.74 million subscribers, leading to a 2.5% increase in mobile ARPU during the period.”
EITC CEO added, “We continue our transformation efforts to cope with a changing business paradigm and increase the efficiency of the business. Our EBITDA for the first 9 months was at AED 4.22 billion virtually flat on a reported basis and with a contained erosion of 1.7% on a like-for-like basis reflecting efficiency efforts all over the organisation to absorb an important part of the pressure on the Revenues. As a part of our operational improvements we have made significant progress during the quarter to advance our digital strategy, while also strengthening our customer proposition.”
In relation to 5G, Osman Sultan emphasized the operator’s efforts that aimed to accelerate the deployment of the technology.
He said, “We have also accelerated in Q3 2019 the deployment of our network and in particular our 5G deployment. Our Capex for the first 9 month-period increased by 82% compared to same period last year to reach AED 799 million almost doubling the capital intensity of the business. These continuous investments confirm our commitment to provide our customers with the latest technologies and products and our regular efforts towards improving customer experience.”
