The net profits of Emirates Integrated Telecommunications Company "du" surged by 54% in the first half of the year to reach 1.18 billion dirhams compared to profits of 767.68 million dirhams during the same period last year. Revenues amounted to 7.17 billion dirhams, a 6% increase compared to 6.78 billion dirhams in the same period of 2023. The company announced its financial results for the second quarter of 2024, reporting net profits of 581 million dirhams, an increase of 46.3% year-over-year.
The company recorded a revenue increase of 7.3% to reach 3.6 billion dirhams, driven by premium services and products offered in the market. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 3.2% to reach 1.6 billion dirhams, thanks to revenue growth.
Capital expenditures stood at 442 million dirhams, while free cash flow from operating activities (EBITDA – Capex) rose by 10.9% year-over-year to reach 1.1 billion dirhams.
Key Operational Results:
- The mobile service subscriber base grew by 2.9% year-over-year to 8.2 million subscribers. However, the mobile subscriber base experienced a slight decline in the second quarter due to seasonal impacts.
- The postpaid customer segment grew by 11.3% year-over-year to reach 1.7 million subscribers, reflecting the attractiveness of innovative communication solutions and technologies offered to corporate clients.
- The prepaid customer segment grew by 0.9% to reach 6.5 million subscribers, as demand for data packages and calling offers partially rebounded with the return of tourists.
The fixed-line service customer base recorded strong growth of 12.7% year-over-year to 630,000 subscribers, with 15,000 new subscribers added in the second quarter. This growth is largely attributed to the continued success of home wireless communication packages, which have been supported by attractive new offers.
Financial Highlights:
- Company's revenues increased by 7.3% year-over-year to 3.59 billion dirhams, primarily supported by strong growth in mobile service revenues and "other revenues":
- Mobile service revenues grew by 6.6% year-over-year to 1.61 billion dirhams, driven by sustained demand from corporate clients and ongoing successes of the premium offerings.
- Fixed-line service revenues grew by 3.5% to 982 million dirhams, mainly due to continuous demand for home wireless communication and broadband packages for corporate clients.
- "Other revenues" increased by 12.7% to 998 million dirhams, propelled by strong growth in ICT solutions and wholesale revenues.
- EBITDA rose by 3.2% to 1.57 billion dirhams, with an EBITDA margin of 7.43%. Excluding a non-recurring item that had a positive impact in Q2 2023, the company recorded high single-digit growth in EBITDA compared to the same period last year.
- Net profit increased by 46.3% to 581 million dirhams, attributed to the rise in EBITDA.
- Capital expenditures were 442 million dirhams (compared to 504 million dirhams in Q2 2023), with a capital intensity ratio decreasing to 12.3% from 15.1% in Q2 2023.
The Chairman of Emirates Integrated Telecommunications Company, Malik Sultan Al Malik, noted that the first half of 2024 saw the company continuing to deliver record results across various indicators, supported by a robust economic and business environment in the UAE.
The Board of Directors approved the distribution of a cash dividend for the first half of the year at 20 fils per share, reflecting a 53.8% increase compared to last year.
Fahad Al Hassawi, CEO of Emirates Integrated Telecommunications Company, stated that due to a steadfast commitment to excellence and a focus on fostering innovation, they have achieved strong operational and financial performance during the second quarter of 2024.
They will continue to focus on implementing their strategy and investing in capabilities to meet future digital demands, as well as expanding 5G network coverage across the UAE and enhancing their IT infrastructure transformation program.
