du reports 25.1% year-on-year rise in Q2 net profit
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
9 hours ago
- Zawya
Du partners with Microsoft, Nokia, Khalifa University, and ITU to launch region's first Arabic Telecom LLM for Operational Excellence
Landmark collaboration to deliver an Arabic Telecom Large Language Model (LLM) tailored for internal operations, driving efficiency, automation and AI-driven innovation across systems at du. Dubai, UAE: du, the leading telecom and digital services provider, has partnered with Microsoft, Nokia, Khalifa University's 6G Research Center, and the International Telecommunication Union (ITU) to launch a first-of-its-kind Arabic Telecom Large Language Model (LLM). This cross-sector partnership brings together global tech innovation, regional research leadership, and international policy guidance to co-create an AI model that serves critical telecom functions in Arabic—a first in the industry. The du Arabic Telecom LLM is tailored specifically for internal telecom operations and is designed to enhance the efficiency of du's processes while advancing the UAE's vision for sovereign AI capabilities. This breakthrough collaboration introduces an Arabic-language telecom assistant that supports du's internal teams by enabling real-time customer complaint handling, device issue resolution, and intelligent operational insights through culturally fluent and context-aware dialogue. The model is built to transform internal processes while ensuring alignment with linguistic precision and cultural nuances specific to the UAE market. Saleem AlBlooshi, Chief Technology Officer at du, said: " du Arabic Telecom LLM reflects our commitment to improving internal efficiency and customer experiences using advanced, culturally attuned solutions. Together with our esteemed partners, Microsoft, Nokia, Khalifa University and ITU, we are building a future where AI speaks our language, understands our context, and drives real operational transformation and impactful customer exp." Developed in the UAE, du Arabic Telecom LLM reflects the region's language and cultural standards, ensuring accurate and meaningful applications for internal telecom use across national critical infrastructure. Looking forward, this collaboration lays the groundwork for extending the model's capabilities beyond internal operations to include customer-facing functions and multilingual support, paving the way for broad sectoral innovation. du and its partners are dedicated to advancing this Arabic Telecom LLM as a benchmark for localized, responsible AI application in the telecom industry and beyond. About du du adds life to life with a comprehensive portfolio of mobile, fixed, broadband, entertainment services, and fintech solutions. Through a digital-first approach powered by ultra-reliable fiber and 5G technology, du delivers bespoke solutions leveraging cloud computing, AI-driven analytics, advanced cybersecurity, and IoT integration. As a trusted digital telco enabler spearheading the UAE's digital transformation, we collaborate with a dynamic partner ecosystem to propel industries and society toward operational excellence, shaping a more connected and digitally advanced future across the region.
Zawya
5 days ago
- Zawya
TECOM Group reports $200.6mln net profit in H1 2025
TECOM Group announced its financial results for the first half (H1) of the year ending 30th June 2025. The Group reported robust net profit growth of 22 percent year-on-year (YoY) to AED737 million, with revenue rising 21 percent YoY to AED 1.4 billion during the period. TECOM Group noted a YoY 24 percent increase in EBITDA, which reached AED1.1 billion, maintaining healthy EBITDA margins at 80 percent, reflecting sustainable business growth. Funds from operations (FFO) increased by 17 percent YoY to reach AED984 million, supported by consistent collections and improved revenue quality. The Board of Directors approved an interim dividend payment of AED400 million for H1 2025, in line with the approved Dividend Policy valid until September 2025. Malek Al Malek, Chairman of TECOM Group, said the results reflect the Group's resilience and its ability to keep pace with the economic growth witnessed in the UAE. He added that TECOM continues to enhance its operational efficiency and deliver sustainable value to shareholders. Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, 'Our financial and operational growth in H1 2025 reflects the success of TECOM Group's roadmap for long-term growth through our recent strategic investments and attracting new customers. The Group's robust performance is a step forward in our journey to enable a sustainable future through our ecosystems, solidifying the UAE's and Dubai's appeal as a global destination for investment and the ease of doing business.' Occupancy in the Group's Land Lease portfolio reached 99 percent, marking YoY growth of 3 percent led by strong customer demand from the industrial sector, accelerated by government strategies such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda 'D33'. In April, PayPal opened its first regional headquarters in the Middle East and Africa at Dubai Internet City, the pioneering hub uniting global tech industry leaders and talent which today generates 65 percent of Dubai's technology sector GDP. In May, Pure Ice Cream commenced construction on its AED80 million production facility at Dubai Industrial City, cementing its vital contribution towards developing the UAE's industrial sector. TECOM Group continued its commitment to nurturing sustainability across its ecosystems and raised the number of its LEED-certified buildings to 55 during H1 2025, marking 34 percent growth compared to H1 2024. The Group made steady progress towards renewable energy adoption, with its solar power projects contributing 8 gigawatt hours (GWh) of clean energy. Aligned with the UAE's vision to strengthen gender balance in the private sector, 35.4 percent of the Group's workforce is comprised of women. TECOM Group has been awarded Shariah compliance certification by the Shariyah Review Bureau (SRB) for the fiscal period ending 31st March 2025.
Gulf Business
5 days ago
- Gulf Business
TECOM Group reports 22% profit growth in H1 2025, declares Dhs400m dividend
Image: TECOM TECOM Group, a leading developer and operator of specialised business districts in Dubai, has announced strong financial results for the second quarter (Q2) and first half (H1) of 2025, ending 30 June. The Group recorded a 22% year-on-year (YoY) increase in net profit, reaching Dhs737m for H1, while revenue grew by 21 per cent YoY to Dhs1.4bn during the same period. The robust performance reinforces TECOM Group's position as a preferred partner for global and regional businesses operating within its 10 specialised business districts, which span six key economic sectors. The results also underscore Dubai and the UAE's continuing appeal as hubs for foreign direct investment. Malek Al Malek, chairman of TECOM Group, said: 'The UAE and Dubai are continuing their journey of sustainable development, achieving record growth and exceptional accomplishments across all economic sectors. Their success is positively reflected in TECOM Group's H1 2025 performance, demonstrating our fundamental strengths and agility in addressing growing demand from the commercial and industrial market, while focusing on operational efficiency to create long-term value for our shareholders. The Board has approved an interim cash dividend of Dhs400m for H1 2025, aligned with our Dividend Policy.' Abdulla Belhoul, chief executive officer of TECOM Group, added: 'Our financial and operational growth in H1 2025 reflects the success of TECOM Group's roadmap for long-term growth through our recent strategic investments and attracting new customers. The Group's robust performance is a step forward in our journey to enable a sustainable future through our ecosystems, solidifying the UAE's and Dubai's appeal as a global destination for investment and the ease of doing business.' The entire financial report can be found
