Emirates Integrated Telecommunications Company (EITC), also known by its brand name “du,” announced its financial results for the quarter ended June 30, 2023. The company reported service revenue growth of 8.9% on the back of strong demand for postpaid mobile and fixed services. Total quarterly revenue reached AED 3.35 billion, according to the company statement.
Financial Highlights:
Revenues grew 6.7% to AED 3,347 million. Mobile service revenues recorded a 7.6% expansion to AED 1,513. Fixed services revenues grew 10.9% to AED 948 million following sustained demand from consumer and enterprise customers. In aggregate, service revenues increased by 8.9% to AED 2,461 million. Other revenues grew by 1.1% to AED 885 million due to healthy growth in roaming services as well as ICT services fueled by demand for security, data center and cloud services.
Net Profit jumped 31.2% to AED 397 million, primarily due to higher EBITDA and excellent management of the cost base. These were partially offset by an increase in royalty expenses and higher D&A charges.
Financial Summary:
Operating Highlights:
The company’s mobile customer base grew 8% year over year to 8 million subscribers while tapering over the quarter. Unlimited data plans and growing demand from the enterprise sector delivered the eighth consecutive quarter of postpaid net additions (13,000). The prepaid customer base grew 7.4% yoy to register 6.5 million customers, despite declining over the quarter, reflecting the typical seasonality impact.
Fixed offering continued its growth with 559,000 broadband customers, representing 18.3% growth year-over-year. The continued expansion of the fiber network and the disciplined execution of broadband strategy supported another quarter of steady performance.
On the basis of these results, the Board of Directors approved the distribution of an interim half-year cash dividend of AED 0.13 per share.
Commenting on the report, Malek Al Malek, EITC Chairman, 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 catalyzed EITC to ascend to new heights and spurred strong performance across all key financial indicators.”
Meanwhile, Fahad Al Hassawi, CEO at du, added, “Our strategic, commercial and investment initiatives have yielded a high growth of 8.9% 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.”
Also read: EITC (du) Reports 19.1% Net Profit Increase in Q1 2023
