Latest news with #Dhs1.1bn
Gulf Business
4 days ago
- Business
- Gulf Business
du reports 25.1% year-on-year rise in Q2 net profit
Image: Getty Images Emirates Integrated Telecommunications Company ( Revenue rose by 8.6 per cent to Dhs3.9bn, while EBITDA grew by 16.4 per cent to Dhs1.83bn, lifting the e arnings before interest, taxes, depreciation, and amortisation (EBITDA) margin to 46.8 per cent, up from 43.7 per cent a year earlier. The company attributed the performance to disciplined cost management and a more favourable product mix, including increased uptake of unlimited data plans. In light of these results, the board approved an interim cash dividend of Dhs0.24 per share, a 20 per cent increase over last year's interim payout. 'Our second quarter financial results showcased impressive performance, fuelled by the meticulous execution of our strategy,' said CEO Fahad Al Hassawi. 'The solid revenue growth was coupled with strong profitability, translating into a 25.1 per cent increase in net profit.' du sees solid subscriber growth The company reported a 10.8 per cent year-on-year increase in mobile subscribers, reaching 9.1m, including 893,000 net additions. Postpaid subscriptions rose 9.8 per cent to 1.9m, while prepaid customers grew 11.1 per cent to 7.3m. Fixed-line subscriptions rose 12 per cent year-on-year to 706,000, supported by continued demand for Home Wireless and fibre broadband services. Segment performance Mobile revenues climbed 7.7 per cent to Dhs1.7bn, reflecting growth in customer base and marketing campaigns. Fixed revenues rose 10.1 per cent to Dhs1.1bn, driven by higher adoption in consumer and SME segments. Other revenues increased by 8.8 per cent to Dhs1.1bn, supported by handset sales, ICT revenues and inbound roaming. Strategic progress During the quarter, du launched the UAE's first sovereign hyperscale cloud platform, the National Hypercloud, and advanced its The company also rolled out 5G Advanced and expanded fibre coverage. 'We are enabling sovereign hyperscale cloud and AI services from UAE-based data centres, empowering a smarter, more connected future for the Emirates,' said chairman Malek Al Malek. Capex and cash flow Capital expenditure increased by 23.1 per cent to Dhs545m, reflecting investments in digital infrastructure and data centres. Operating free cash flow rose 13.8 per cent to Dhs1.28bn. Capital intensity rose to 14 per cent from 12.3 per cent in Q2 2024. The company reaffirmed its 2025 full-year guidance, with revenue expected to grow 6 to 8 per cent and EBITDA margin targeted between 45 to 47 per cent. The guidance was upgraded based on strong results and sustained growth momentum.
Gulf Business
06-05-2025
- Business
- Gulf Business
Du Q1 profit jumps 19.8% on strong revenue growth, margin expansion
Image: Getty Images Emirates Integrated Telecommunications Company (du) reported its first-quarter results for 2025, with strong growth across revenues, margins and profitability, driven by performance across both service and non-service segments. Total revenues rose 7.4 per cent year-on-year to Dhs3.8bn, while EBITDA surged 15 per cent to Dhs1.8bn, resulting in a margin of 47.4 per cent. The company said the growth was underpinned by an improved revenue mix and cost efficiency measures. Net profit rose 19.8 per cent to Dhs722m, with a net margin of 18.8 per cent. The company cited disciplined execution of strategy, positive interest results and strong operational performance as key contributors. Good start to the year: du CEO 'We started the year with a very strong first quarter, delivering growth across all key financial metrics and making meaningful progress on our strategy to diversify revenue streams, as witnessed by the strategic partnership with Microsoft to develop a hyperscale 'The resilient UAE environment coupled with the quality of our offerings and our ability to respond to evolving customer needs contributed to the solid growth in our subscriber base, with our mobile base now exceeding the 9 million mark and our revenues witnessing a remarkable 7.4 per cent growth,' he added. Al Hassawi said the company achieved 'strong margin expansion' as EBITDA margin rose to 47.4 per cent and reiterated full-year guidance, citing confidence in continued momentum. He noted the company's balance sheet remains robust, supported by strong cash generation and normalisation of capital expenditure. Revenues on the rise Mobile service revenues rose 7.4 per cent year-on-year to Dhs1.7bn, supported by a growing customer base and higher ARPU through improved product mix and personalised offerings. Fixed service revenues climbed 10.2 per cent to Dhs1.1bn, attributed to rising fibre penetration and the success of home wireless and enterprise connectivity solutions. Other revenues grew 4.8 per cent to Dhs1.1bn, led by expansion in ICT and higher inbound roaming and interconnection revenues. Lower handset sales, due to a high comparison base from Q1 2024, partly offset the gains. Capex for the quarter stood at Dhs377m, slightly up from Dhs359m a year earlier, representing a capex intensity of 9.8 per cent. The company said it remains focused on 5G densification, fibre expansion and ICT development, along with IT system transformation to enhance network quality and customer experience. Operating free cash flow increased 17.9 per cent to Dhs1.4bn, driven by strong EBITDA growth. At a glance Dhs million Q1 2025 Q1 2024 Change Revenues 3,848 3,581 7.4% Service revenues 2,780 2,563 8.5% Other revenues 1,067 1,018 4.8% EBITDA 1,824 1,586 15% EBITDA Margin (%) 47.4% 44.3% +3.1pp Net profit 722 603 19.8% Capex 377 359 5% Capital intensity (%) 9.8% 10.0% -0.2pp Operating Free Cash Flow 1,447 1,228 17.9%
