UAE telecom operator Emirates Integrated Telecommunications Company (du) reported a 12.6% increase in first-half net profit on Wednesday, supported by higher service revenue, improved operating margins and disciplined cost management, despite softer customer activity during the second quarter.
Net profit for the six months ended June reached Dh1.63 billion, while revenue increased 5.8% year-on-year to Dh8.20 billion. Service revenue, which accounts for the majority of the company's income, rose 7.7% to Dh6.03 billion.
The company's board approved an interim cash dividend of 26 fils per share, up 8.3% from the same period last year.
The results came as regional tensions slowed subscriber activations, tourism and consumer spending during the second quarter, although du maintained revenue growth through its expanding enterprise business and continued demand for digital connectivity services.
Quarterly revenue increased 4.6% to Dh4.08 billion, while net profit rose 9.8% to Dh798 million. EBITDA climbed 9.2% to Dh1.99 billion, lifting the quarterly EBITDA margin to 48.8%.
Mobile subscribers stood at 9.3 million at the end of June, representing annual growth of 1.6%. Postpaid subscriptions increased 9% to 2.1 million, while prepaid subscribers slipped 0.4% to 7.2 million, reflecting weaker tourism-related demand.
The fixed-line business continued to expand, with the customer base growing 5.5% to 744,000. The company said Home Wireless services and enterprise connectivity remained the main growth drivers.
Capital expenditure during the second quarter rose 19.8% to Dh653 million as du accelerated investment in network expansion and data centre infrastructure. First-half capital expenditure reached Dh1.04 billion, up 12.7% from a year earlier.
Despite the higher investment, operating free cash flow increased 9.7% to Dh2.99 billion during the first six months of the year.
Chief Executive Officer Fahad Al Hassawi said the company continued to invest in cloud computing, artificial intelligence and data centre capabilities while maintaining financial discipline.
"These efforts enabled us to sustain both top-line and bottom-line growth despite a softer monetisation trend and a cautious spending environment," Al Hassawi said.
During the quarter, du also launched du Ventures in partnership with investment firm Shorooq, with the new fund focusing on startups developing emerging technologies.
Chairman Malek Al Malek said the company remains focused on strengthening its digital infrastructure while maintaining operational discipline amid evolving market conditions.
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