Emirates Integrated Telecommunications Company PJSC (“EITC”) whose brand name is du published its financial results for the quarter-ended 30 June 2022. Sustained demand for broadband and mobile services led the revenues to increase by 9.9% to AED 3.14 billion. EBITDA improved by 12.1% to AED 1.27 billion, attributable to a sharp increase in service revenues and gross margin expansion. Net profit increased by 26.2% to AED 303 million. Operating Free Cash Flow (EBITDA – Capex) grew 47.7% to AED 709 million, driven by higher EBITDA and Capex spend that is beginning to normalize. On the basis of these results, the Board of Directors approved an interim cash dividend of AED 0.11 per share representing a 10% increase over the previous year’s interim dividend. Read Q1 results
Source: EITC Q2 2022 financial results
Operating highlights
The mobile customer base grew 13.0% to 7.4 million subscribers, highlighting the sustained performance of the postpaid segment with net-additions of 24,000, a fourth consecutive quarter of growth, to reach 1.4 million subscribers. The quarter ended with 6.1 million prepaid customers. The prepaid visitor customer base tapered following the conclusion of Expo 2020 and the start of the low tourist season. Excluding visitor SIMs, our prepaid customer base remained stable when compared to the previous quarter.
Consumer broadband customer base increased 69.5% to 473,000, attracting 35,000 new customers, compared to 31,000 for the same period last year, as a result of the combination of connecting new premises to fiber network and an attractive commercial offering.
Commenting on the results, Malek Al Malek, Chairman said, “EITC delivered an excellent set of results. The recovery trend seen towards the end of last year, is morphing into a growth trajectory that is driving revenues back to pre-COVID levels and an improvement in profitability. We are maintaining a dynamic and proactive commercial approach: we will continue launching new products and services for the benefit of our customers. Our transformation projects, a key enabler of these commercial initiatives, are progressing according to plan.”
Meanwhile, Fahad Al Hassawi, EITC CEO added, “I am really delighted by this quarter’s performance. We have delivered three consecutive quarters of improvements and growth. Crucially, our service revenues have been and will continue to be a significant driver of profitability. Q2’22 service revenues have reached a three-year high. Our commercial and investment efforts continue to bear fruits. We had a fourth consecutive quarter of net-additions on the high-value postpaid segment. Our customer acquisition on the consumer broadband services remains robust. We are also actively managing the efficiency of our business to drive profitability. Cash generation will sustainably improve as our Capex program continues to normalize.”
He concluded, “As the UAE economy and population grow, I am confident we will continue to improve our positioning through the various initiatives we are launching.”
