Latest news with #EmiratesIntegratedTelecommunicationsCompany
Khaleej Times
20-05-2025
- Business
- Khaleej Times
Dubai telecom operator du reports 19.8% net profit increase in Q1 2025
Emirates Integrated Telecommunications Company PJSC (du) reported its financial results for the first quarter of 2025, marked by robust growth in both revenues and profitability. Total revenues increased by 7.4 per cent year-over-year, driven by solid performance across both service and non-service segments. EBITDA rose by an impressive 15.0 per cent supported by improved revenue mix and efficient cost management, resulting in an exceptional EBITDA margin of 47.4 per cent. This operational strength translated into a net profit increase of 19.8 per cent, underscoring our continued momentum and financial discipline, according to a press statement released by the company today. Fahad Al Hassawi, CEO commented, '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 data centre. 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, "We also achieved a strong margin expansion, with EBITDA margin rising to 47.4 per cent while net profit grew by 19.8 per cent, reflecting disciplined execution of our strategy and effective cost management. Our balance sheet remains robust supported by strong cash generation and the continuing normalisation of capital expenditures in our connectivity business, enabling us to strategically expand into high-potential growth areas. We have reiterated our guidance, highlighting our confidence in maintaining this strong momentum throughout the year.' According to the company's statement, Q1 revenues grew by 7.4 per cent year-over-year reaching Dh3.8 billion with growth in both service and non-service revenues primarily driven by the strong macro environment in the UAE, our ability to gain market share, as well as our sustained focus on high ARPU products and mix improvement. Q1 Mobile service revenues increased by 7.4 per cent year-over-year to Dh1.7 billion driven by the growth of our customer base, improved mix and enhanced ability to capture demand for higher ARPU products through higher offer personalisation and data driven Customer Value Management, as well as some non-recurring revenues. Q1 Fixed service revenues rose by 10.2 per cent year-over-year reaching Dh1.1 billion mainly driven by the higher fibre penetration and the continuing success of our Home Wireless product and Enterprise connectivity solutions. Q1 'Other revenues' grew by 4.8 per cent year-over-year to Dh1.1 billion driven by the expansion of our ICT business as we continue to seek new revenue streams beyond our core business. The growth was also driven by higher in-bound roaming revenues supported by higher tourists' inflow and higher interconnection revenues reflecting our higher mobile base. This was partly offset by lower handset sale mainly reflecting a phasing effect, with Q1'24 handset sales benefitting from a pull-forward in demand due to supply constraints in the prior quarter, resulting in a higher comparison base. Q1 EBITDA grew by 15.0 per cent to Dh1.8 billion, with an EBITDA margin of 47.4 per cent. The strong revenues' growth, improved Mix, increased ARPU, lower handset sales and lower authentication costs, as well as the positive impact of the non-recurring revenue items resulted in higher gross margin. This was coupled with improved collections performance and our continuous focus on operational efficiency and strong control of indirect costs. Q1 Net Profit witnessed a 19.8 per cent growth year-over-year to Dh722 million, representing a Net Profit margin of 18.8% reflecting the strong EBITDA performance and positive interest result. Q1 Capex was at Dh377 million (Q1 2024: Dh359 million), a capex intensity of 9.8 per cent (Q1 2024 capex intensity of 10.0 per cent). Our core investments remain focused on 5G densification, enhancing indoor coverage and expanding Fibre deployment, and we will further allocate capital to continue developing our ICT activities. We will also continue improving our infrastructure and transforming our IT systems to further enhance the quality of our network and elevate customer experience. Q1 Operating free cash flow (EBITDA – Capex) increased by 17.9 per cent to Dh1.4 billion, mainly driven by EBITDA growth.
CairoScene
15-05-2025
- Business
- CairoScene
du Launches GPU-as-a-Service to Boost Enterprise AI in the UAE
du's new GPU-as-a-Service platform aims to support AI development across sectors by offering high-performance, scalable compute infrastructure to enterprises and developers in the UAE. May 15, 2025 UAE telecom operator du, part of Emirates Integrated Telecommunications Company (EITC), has launched a new GPU-as-a-Service (GPUaaS) offering designed to meet the rising demand for high-performance compute infrastructure required for enterprise artificial intelligence (AI) and machine learning workloads. The service provides access to NVIDIA GPUs on-demand through a subscription model, allowing businesses to scale AI development without the need for significant upfront investment in hardware. du's platform will be hosted in its Tier III data centres, with enterprise-grade SLAs and secure, low-latency access, tailored for AI model training, inferencing, and large-scale data processing. By launching GPUaaS, du positions itself as a critical enabler of AI adoption in the UAE's public and private sectors. The initiative aligns with the country's broader digital transformation goals, particularly the UAE's National Artificial Intelligence Strategy 2031. du's enterprise clients—including those in finance, healthcare, energy, and smart city planning—can now accelerate AI development pipelines while managing costs and resource allocation more efficiently. The service is expected to appeal to startups and research institutions as well, offering flexible compute access without the traditional capital expenditure hurdles.
Mid East Info
06-05-2025
- Business
- Mid East Info
du reports its Q1 2025 results with 19.8% net profit increase - Middle East Business News and Information
Sustained revenue growth with revenues up 7.4%, combined with an exceptional margin expansion to 47.4% Landmark partnership in ICT for a new hyperscale data centre Dubai, UAE. May 2025 – Emirates Integrated Telecommunications Company PJSC (du) reported its financial results for the first quarter of 2025, marked by robust growth in both revenues and profitability. Total revenues increased by 7.4% year-over-year, driven by solid performance across both service and non-service segments. EBITDA rose by an impressive 15.0% supported by improved revenue mix and efficient cost management, resulting in an exceptional EBITDA margin of 47.4%. This operational strength translated into a net profit increase of 19.8%, underscoring our continued momentum and financial discipline. Q1 2025 Highlights Continuing commercial momentum resulting in 7.4% revenue growth to AED 3.8bn Solid growth of mobile and fixed subscriber base with mobile exceeding 9 million subscribers Strong profitability with EBITDA increasing by 15.0% to AED 1.8bn, EBITDA margin up by 3.1pp to 47.4% and net profit up by 19.8% to AED 0.7bn Key milestone achieved in expanding ICT footprint through a strategic partnership with Microsoft to build state-of-the-art hyperscale data centre in the UAE du Pay celebrates one year of activity with half a million app downloads and half a billion dirhams in transactions Financial Summary: AED 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 15.0% EBITDA Margin (%) 47.4% 44.3% 3.1pp Net profit 722 603 19.8% Capex 377 359 5.0% Capital intensity (%) 9.8% 10.0% 0.2pp Operating Free Cash Flow 1,447 1,228 17.9% Fahad Al Hassawi, CEO commented: '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 data centre. 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% growth. We also achieved a strong margin expansion, with EBITDA margin rising to 47.4% while net profit grew by 19.8%, reflecting disciplined execution of our strategy and effective cost management. Our balance sheet remains robust supported by strong cash generation and the continuing normalization of capital expenditures in our connectivity business, enabling us to strategically expand into high-potential growth areas. We have reiterated our guidance, highlighting our confidence in maintaining this strong momentum throughout the year.' Customer base: In Q1 Our Mobile customer base grew by 5.5% year-over-year reaching 9.1 million subscribers with 475,000 net-additions. Postpaid remains a strong engine of growth with an increase of 9.6% year-over-year to 1.8 million customers mainly driven by Enterprise, where we introduced several innovative offerings such Business roaming proposals. The Prepaid base grew by 4.5% to 7.3 million customers driven by new customized plans. In Q1 our Fixed customer base saw a strong growth of 13.8% year-over-year reaching 701,000 subscribers, with 19,000 net-additions in the first quarter and 85,000 over the past 12 months driven by new offers such as the upgraded Home basic plan and Office wireless offers including managed services. We maintained a strong momentum in Home Wireless boosted by the virgin mobile offerings and we sustained our operational and commercial focus towards network expansion and penetration in areas with high growth potential. Q1 2025 Financial Highlights Q1 revenues grew by 7.4% year-over-year reaching AED 3.8 billion with growth in both service and non-service revenues primarily driven by the strong macro environment in the UAE, our ability to gain market share, as well as our sustained focus on high ARPU products and mix improvement. Q1 Mobile service revenues increased by 7.4% year-over-year to AED 1.7 billion driven by the growth of our customer base, improved mix and enhanced ability to capture demand for higher ARPU products through higher offer personalisation and data driven Customer Value Management, as well as some non-recurring revenues. Q1 Fixed service revenues rose by 10.2% year-over-year reaching AED 1.1 billion mainly driven by the higher fibre penetration and the continuing success of our Home Wireless product and Enterprise connectivity solutions. Q1 'Other revenues' grew by 4.8% year-over-year to AED 1.1 billion driven by the expansion of our ICT business as we continue to seek new revenue streams beyond our core business. The growth was also driven by higher in-bound roaming revenues supported by higher tourists' inflow and higher interconnection revenues reflecting our higher mobile base. This was partly offset by lower handset sale mainly reflecting a phasing effect, with Q1'24 handset sales benefitting from a pull-forward in demand due to supply constraints in the prior quarter, resulting in a higher comparison base. Q1 EBITDA grew by 15.0% to AED 1.8 billion, with an EBITDA margin of 47.4%. The strong revenues' growth, improved Mix, increased ARPU, lower handset sales and lower authentication costs, as well as the positive impact of the non-recurring revenue items resulted in higher gross margin. This was coupled with improved collections performance and our continuous focus on operational efficiency and strong control of indirect costs. Q1 Net Profit witnessed a 19.8% growth year-over-year to AED 722 million, representing a Net Profit margin of 18.8% reflecting the strong EBITDA performance and positive interest result. Q1 Capex was at AED 377 million (Q1 2024: AED 359 million), a capex intensity of 9.8% (Q1 2024 capex intensity of 10.0%). Our core investments remain focused on 5G densification, enhancing indoor coverage and expanding Fibre deployment, and we will further allocate capital to continue developing our ICT activities. We will also continue improving our infrastructure and transforming our IT systems to further enhance the quality of our network and elevate customer experience. Q1 Operating free cash flow (EBITDA – Capex) increased by 17.9% to AED 1.4 billion, mainly driven by EBITDA growth. 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 fibre 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.
Arabian Post
06-05-2025
- Business
- Arabian Post
du reports significant profit surge for Q1 of 2025
Emirates Integrated Telecommunications Company has reported a strong financial performance for the first quarter of 2025, reflecting substantial growth in both net profit and revenues. The company's net profit surged by 19.8%, reaching AED 722 million , while revenues increased by 7.4% year-on-year to AED 3.8 billion. The results highlight du's resilience and strategic initiatives in a highly competitive telecom market. The strong growth in net earnings is primarily attributed to du's effective management of its revenue mix and operational costs. The company's EBITDA also saw a notable increase of 15%, amounting to AED 1.8 billion. This growth in earnings before interest, tax, depreciation, and amortisation was aided by the improved cost management strategies and a more balanced revenue distribution, which contributed to an EBITDA margin of 47.4%. This marked a 3.1 percentage-point improvement from the same period last year. du's performance in Q1 2025 underscores the success of its ongoing transformation efforts aimed at strengthening its market position. The company has made significant strides in diversifying its product and service offerings, tapping into new revenue streams, and expanding its digital services portfolio. These measures have not only helped improve its financial outcomes but also bolstered its competitiveness in an evolving telecommunications landscape. The telecom industry in the UAE, which continues to be driven by technological advancements and digital transformation, has seen both du and its competitors adapt to changing consumer demands. With an increasing reliance on mobile data, fibre optics, and digital platforms, du has managed to capitalise on this shift by enhancing its service delivery and improving customer experience. The company's digitalisation strategy has been integral to this growth, positioning it as a strong player in both consumer and business sectors. See also Scorching Heat and Dust Storms Grip UAE Cities In terms of operational performance, du has placed a significant emphasis on network optimisation and infrastructure upgrades. This includes expanding its 5G capabilities, which have become a crucial part of the telecom landscape in the UAE. As 5G networks continue to roll out across the country, du's investments in next-generation technologies are likely to provide a competitive edge, enabling it to meet the growing demand for faster and more reliable mobile connectivity. The company has also focused on improving its cost management strategies, which have been a key factor in its improved profitability. By streamlining operations, reducing unnecessary expenditures, and optimising its resource allocation, du has been able to maintain a healthy margin despite the competitive pressures in the telecom sector. Another factor contributing to du's success has been its continued focus on expanding its customer base. The company has increased its customer acquisition efforts, both in the consumer and enterprise markets, offering tailored solutions to meet the needs of various segments. With a robust digital strategy, du has been able to deliver value-added services, such as cloud solutions, IoT, and advanced cybersecurity offerings, which are highly sought after by businesses and government entities. Looking ahead, du's financial outlook remains positive, with analysts forecasting continued growth in the upcoming quarters. The company's strong market position, enhanced service offerings, and commitment to technological innovation are expected to support its long-term growth trajectory. Furthermore, the UAE's ongoing infrastructure development and plans for economic diversification are likely to present further opportunities for du to expand its footprint. Despite the challenging nature of the telecom industry, characterised by high competition and regulatory pressures, du's performance demonstrates its ability to adapt and thrive. The company's proactive approach to cost control, investment in technology, and customer-centric focus have proven to be effective strategies in maintaining profitability and growth. See also EU and UAE Set Course for Direct Trade Negotiations
06-05-2025
- Business
du Reports Strong Q1 2025 Results as Revenues and Profits Surge
Emirates Integrated Telecommunications Company PJSC (du) has reported a robust start to 2025, with its first-quarter financials showing solid growth in revenue, profit, and operating performance. The telecom operator posted a 7.4% year-over-year increase in total revenues, reaching AED 3.8 billion. This was driven by strong performance across both service and non-service segments. EBITDA jumped 15% to AED 1.8 billion, lifting the EBITDA margin to an impressive 47.4%. Net profit surged by 19.8% to AED 722 million, reflecting effective cost control and operational discipline. Fahad Al Hassawi, CEO of du, described the quarter as a 'very strong start' to the year. He credited the growth to a resilient UAE market, evolving customer needs, and the company's strategic focus on diversification. Notably, du's partnership with Microsoft to develop a hyperscale data centre signals its continued push beyond traditional telecom offerings. Mobile service revenues climbed 7.4% to AED 1.7 billion, supported by subscriber growth and increased demand for higher-value services. The mobile base now exceeds nine million users. Fixed service revenues rose by 10.2% to AED 1.1 billion, driven by higher fibre penetration and strong performance from home and enterprise connectivity products. Other revenues, including ICT services and roaming, grew by 4.8%, despite lower handset sales compared to Q1 2024. du said the previous year benefited from a demand surge due to earlier supply constraints. Capital expenditure stood at AED 377 million, with continued investments in 5G infrastructure, fibre rollout, and IT transformation. Operating free cash flow increased by 17.9% to AED 1.4 billion, underpinned by EBITDA growth. The company reaffirmed its full-year guidance, citing strong momentum and a stable outlook for sustained growth. News Source: Emirates News Agency
