Emirates Integrated Telecommunications Company net profit jumps 31.2% in Q2

EITC’s mobile customer base grew 8% year-on-year to 8 million subscribers


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EITC's mobile service revenues continued their strong growth recording 7.6 per cent expansion to Dh1.513 billion.
EITC's mobile service revenues continued their strong growth recording 7.6 per cent expansion to Dh1.513 billion.

Published: Wed 26 Jul 2023, 5:39 PM

Last updated: Thu 27 Jul 2023, 3:29 PM

Emirates Integrated Telecommunications Company PJSC (EITC),the parent company of telecom operator du, on Wednesday announced that net profit for the quarter ended on June 30 jumped by 31.2 per cent to Dh397 million.

On the back of strong demand for postpaid mobile and fixed services, service revenues grew by 8.9 per cent supporting the growth of total quarterly revenue to reach Dh3.35 billion. Ebitda increased by 20 per cent to Dh1.52 billion. Operating free cash flow (Ebitda – Capex) grew by 43.3 per cent to Dh1 billion.

EITC’s mobile customer base grew 8 per cent year-on-year to 8 million subscribers while tapering over the quarter. Our Unlimited data plans and growing demand from the enterprise sector delivered eighth consecutive quarter of postpaid net-additions (13,000). The prepaid customer base grew 7.4 per cent year-on-year 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 per cent growth year-over-year.

Revenues grew 6.7 per cent to Dh3.347 billion. Mobile service revenues continued their strong growth recording 7.6 per cent expansion to Dh1.513 billion. Fixed services revenues grew 10.9 per cent to Dh948 million following a sustained demand from consumer and enterprise customers. In aggregate, service revenues increased 8.9 per cent to Dh2.461 billion. Other revenues grew by 1.1 per cent to Dh885 million due to healthy growth in roaming services as well as ICT services fueled by demand for security, datacentre and cloud services.

Ebitda increased by 20.0 per cent year-on-year to Dh1.52 billion. Gross profit was boosted by higher service revenues, improvement of the revenue mix and one-off reversal. This improvement of the gross margin was reflected in the Ebitda due to effective cost management and ongoing operational efficiency.

Capex spending stood at Dh506 million, with capital intensity at 15.1 per cent. The company’s spend during the quarter was directed towards 5G deployment, expanding its fibre network and ongoing IT transformation.  Traffic on EITC’s 5G network continues to grow rapidly, the company said.

Malek Al Malek, Chairman of 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 EITC 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 Dh0.13 per share.”

Fahad Al Hassawi, CEO, said: “I am very pleased with our performance this quarter, as our financial results highlight our ongoing dedication to executing our strategy of enhancing customer experience and offering innovative products, services and solutions. 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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