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Emirates Integrated Telecommunications Company posts 63% rise in first quarter net profit

Company’s mobile customer base grew 5.7% year-over-year to 8.7 million subscribers

Emirates Integrated Telecommunications Company on Monday reported a 62.7 per cent surge in net profit to Dh603 million for the first quarter of 2024.

Revenues increased by 4.1 per cent to Dh3.58 billion. Earnings before interest, taxes, depreciation and amortisation (Ebitda) soared by 16.2 per cent to Dh1.59 billion reflecting top line growth, margin expansion as well as continued focus on enhancing operational efficiency. Ebitda margin expanded by 4.6 points to reach an impressive 44.3 per cent.

The rise in net profit primarily reflected strong Ebitda growth, the company said in a statement. “Capex was at Dh359 million, while operating free cash flow (Ebitda – Capex) for the year was up 28.2 per cent to Dh1.2 billion.

Launch of “du Pay”

On April 1, the company launched its digital financial services under the brand “du Pay” to provide transformative fintech solutions for UAE residents. This is a significant milestone that supports the UAE’s commitment to fostering innovation, competition, and financial inclusion. Leveraging du’s robust brand identity and extensive customer reach, “du Pay” is poised to accelerate the transition towards a cashless economy and digitalisation by providing unparalleled financial services.

Operating highlights

The company’s mobile customer base grew 5.7 per cent year-over-year to 8.7 million subscribers, with net additions of 108,000 subscribers over the quarter. The postpaid customer base grew 10.1 per cent to 1.7 million subscribers (Q1 2024 net additions: 47,000). The prepaid customer base grew by 4.7 per cent to seven million customers (Q1 2024 net additions: 61,000).

The fixed customer base rose by a 11.1 per cent year-over-year to 616,000 subscribers, with net additions of 12,000 subscribers over the quarter. “This significant growth underscores the success of our strategic positioning and is driven by the continuous success of our Home wireless plans and the sustained growth of our broadband customer base,” the company said.

Mobile service revenues grew 7.4 per cent year-over-year to Dh1.602 billion primarily driven by higher postpaid revenues. Prepaid revenues continue to grow driven by the higher subscriber base.

Fixed services revenues reached Dh961 million, a 2.7 per cent year-over-year growth mainly driven by our Home Wireless and enterprise broadband plans which remain extremely attractive.

Other revenues were broadly stable at Dh1.018 billion as higher interconnect and inbound roaming revenues offset the reduction in hubbing revenues.

Ebitda margin expanded by 4.6 percentage points to 44.3 per cent.

Fahad Al Hassawi, EITC’s CEO, commented: “2024 has kicked off on an extremely positive note. We strengthened our position as a major operator in the telecommunications industry by delivering an excellent operational and financial performance and executing on our strategic initiatives in core and non-core areas of our business. We expanded our customer base and achieved robust revenue growth, underscoring the strength of our offerings and our unwavering commitment to excellence. We have further optimised our operations, thus significantly boosting our bottom line. Looking ahead, we are confident in our ability to sustain this positive momentum and we will continue to innovate and lead in the rapidly evolving telecom landscape while creating long-term value for our stakeholders.”