EITC reports annual net profit of Dh1.1b

In 2021, the company deployed a record Dh2.6 billion in capital investment

Emirates Integrated Telecommunications Company (EITC) has announced its financial results for the year-ended December 31, 2021, with full-year revenues growing by 5.4 per cent to Dh11.7 billion.

The growth is based on sustained demand for broadband services and 5G handsets as well as a gradual recovery of mobile services. Revenues in Q4 staged a remarkable 12 per cent growth thanks to several commercial initiatives supported by improving market conditions. Full-year EBITDA grew by 1.9 per cent to Dh4.6 billion reflecting revenue growth and cost saving initiatives. In addition, EBITDA increased by 20.5 per cent. Net profit for the year reached Dh1.1 billion.

In 2021, EITC invested a record amount of Dh2.6 billion as evidenced by the rapid 5G network roll-out. Despite the magnitude of investments, EBITDA – Capex for the year remains strong at Dh2 billion. On the basis of these results, the board recommended a dividend for the year 2021, of 21 fils per share, out of which 10 fils per share were already paid as an interim dividend on August 24, 2021.

Fahad Al Hassawi, CEO of EITC, said: “We built a tremendous commercial momentum by focusing on our customers. We are anticipating their requirements and we provide them innovative products and services. This drove an increase in our postpaid mobile and broadband customer base in the last quarter.”

He added: “I am proud that we delivered growth in service revenues. Fixed service revenue trends from the consumer and enterprise segments remain buoyant. I am especially pleased to report that mobile service revenues returned to growth in Q4 following 12 consecutive quarters of decline. This vindicates our strategic roadmap and we have no plans to slow down.”

EITC’s mobile customer base grew by 8.9 per cent year-over-year. It ended the year with 7.3 million subscribers on record net-additions in Q4. This growth reflects the growth in postpaid customers as well as a significant increase in prepaid customers during Q4. The company’s fixed customer base increased by 66 per cent year-over-year. The company ended the year with 390,000 subscribers on another record net-additions in Q4.

Malek Sultan Al Malek, chairman of EITC, said: “While 2020 was challenging and tumultuous, 2021 was a year of recovery and transformation. In 2021, we returned to growth thanks to our consistent and disciplined strategy execution supported by a gradual improvement of market dynamics. During the year, we continued our ambitious investment program to accelerate the transformation and deployment of our infrastructure into a next-generation network for the benefit of our customers.”

“We also fine-tuned our operational model and governance to evolve with our market, our industry and our customers’ needs,” he added. “Despite significant investments, our business remains very cash generative and our balance sheet solid with Dh5.6 billion in available liquidity. We have expanded our fibre footprint in terms of backhaul and premises connected. Our IT infrastructure continues its transformation. We have the financial flexibility to pursue our exciting growth journey.”

business@khaleejtimes.com