du announced its financial results for the third quarter of 2024, boasting a stellar top line growth of 9.1%, revenues of AED 3.6 billion, and robust EBITDA growth of 16.9% to AED 1.7 billion.
Moreover, its Q3 EBITDA margin of 48.3% marks the highest since its inception while its Q3 net profit of AED 719 million represents its highest quarterly net profit in the last three years, surging by 42.7%. CapEx was also normalized with a capital intensity of 12.2% during the first nine months of the year.
This very strong financial performance is the result of sustained commercial momentum, consistent strategy execution and efficient cost management.
Coverage: du’s Envision 2024: Charting the Future of AI and Digital Innovation
Q3 Financial Snapshot
Commenting on the Q3 developments and performance, Fahad Al Hassawi, CEO, said, “In the third quarter, we continued to execute our strategy of strengthening our core connectivity business whilst selectively expanding beyond the core to position ourselves as a leading integrated digital services enabler.”
du’s mobile service revenues increased by 7% YoY to AED 1,633 million, primarily driven by strong growth in the postpaid segment and an increase in mobile ARPU, thanks to high-value products and the success of its customer value management (CVM) strategy.
Additionally, du’s fixed service revenues rose by 7.9% reaching AED 1,013 million, driven by the continued success of its Home Wireless product, enterprise broadband plans and the expansion of its fixed network into underserved areas.
Within its “Other” revenues segment, there has also been a 14.1% surge to AED 944 million, driven by the strong performance of its wholesale business and high equipment sales following the successful launch of the iPhone 16. du’s ICT business also contributed significantly to this performance, due to its growth in cloud and managed services as well as consistent results from its data center operations.
Based on the company’s latest financial statement, CapEx reached AED 511 million, moderating from its peak levels as the bulk of du’s investments in 5G have been achieved. “We will continue extending our 5G coverage, focusing on densification and indoor coverage, as well as deploying fiber in new and existing developments and implementing the transformation of our IT and infrastructure to increase efficiency and offer the best-in class customer experience,” its Q3 earnings release mentioned.
Q3 Milestones
Significant milestones have been achieved in du’s connectivity business and beyond, underpinning its evolution from a telecom operator into a leading telecom and digital services provider. These include its strategic B2B portfolio overhaul with the launch of two new sub brands: du Tech and du Infra.
According to the CEO, the recent overhaul of the company’s operating brands “reflects our strategic shift to drive comprehensive digital transformation across our services, underscoring our commitment to innovation and creation of dynamic digital ecosystems.”
With du’s expanded portfolio and the deployment of 5G SA and AI technologies, the digital telco is setting the stage for transformative digital adoption by individuals, businesses, and governmental bodies.
The UAE-based telco has also invested in a recent partnership with AI Hosting Hub, underscoring its commitment to growing in the data center and cloud sectors. It has also collaborated with the Orange Alliance, highlighting its aim to leverage the expertise of global operators to adopt industry-leading practices.
“The successful execution of our strategy has led to another quarter of strong financial performance. Our quarterly revenues were up by over 9% as we saw a robust growth in all our segments. Our customer base is further expanding, and the third quarter was marked by over 14% growth of the fixed customer base. These results highlight the alignment of our products with customer needs and the high quality of our infrastructure,” continued the CEO.
du’s fixed customer base saw a strong YoY growth, reaching 655,000 subscribers, with 24,000 net-additions this quarter and 81,000 over the past 12 months. On the other hand, its mobile customer base grew 2.7% YoY, reaching 8.3 million subscribers with 71,000 net-additions this quarter and 218,000 over the past 12 months.
“Our strong cash generation and healthy balance sheet provide us with the flexibility to invest in future growth opportunities and deliver strong returns to our shareholders. We remain confident in achieving our targets and have reaffirmed our 2024 guidance,” concluded Al Hassawi.
Previous Results:
du Records 54.2% Net Profit Rise in H1 2024, Eyes Long-Term Growth
du Q1 2024: Impressive 63% Surge in Net Profit
