Du Telecom Profit Soars in First Quarter

Strong Start to the Year for 'du' Telecom – Profit Up 19.8% in Q1

Dubai-based Emirates Integrated Telecommunications Company PJSC (commonly known as du) reported outstanding financial results for the first quarter of 2025. The company's revenue increased by 7.4% compared to the same period last year, reaching 3.8 billion dirhams. This growth is attributed to the favorable economic environment in the UAE and strong performance in both service and non-service segments.

Dynamically Growing Revenue and Subscriber Base

The company stated that revenue from mobile services rose by 7.4% to 1.7 billion dirhams. This was mainly driven by an expanding customer base, increased demand for higher-value service packages, and personalized offers, alongside data-driven customer value management. The number of mobile subscribers now exceeds 9 million.

Revenue from fixed-line services saw an even higher growth of 10.2%, reaching 1.1 billion dirhams. This is largely due to the robust expansion of broadband networks, as well as the success of the Home Wireless product and enterprise connectivity solutions.

The 'Other Revenue' category, which includes the expansion of the ICT (information and communications technology) business line and increased inbound roaming fees, grew by 4.8%. The revival in the travel sector and a rise in interconnection charges also contributed to this improvement.

High Operational Efficiency and Record EBITDA

Du's EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 15% to 1.8 billion dirhams. The EBITDA margin rose to 47.4%, which is considered outstanding in the industry. The company highlighted that the results were strengthened not only by revenue growth but also by effective cost control and the positive impact of non-recurring income.

Impressive Profit Growth

The first quarter's net profit increased by 19.8% to 722 million dirhams, translating to an 18.8% profit margin. The company attributes this to excellent EBITDA performance and positive interest income.

Investments and Future Developments

Du invested 377 million dirhams in the quarter, representing a capex intensity of 9.8%. The investments focus primarily on densifying the 5G network, improving indoor coverage, and expanding the fiber-optic network. Additionally, the company is expanding its ICT activities and upgrading its IT systems to provide an even higher level of customer experience.

Strong Free Cash Flow

First-quarter operating free cash flow (EBITDA – Capex) grew by 17.9% to 1.4 billion dirhams, which is also attributable to the growth in EBITDA.

Looking Ahead

Du reaffirmed its previous annual forecast, remaining confident that the current momentum will continue for the rest of the year. The focus of the company's strategy remains on diversifying revenue sources, digital transformation, and improving customer experience. Strategic partnerships, such as the development of a hyperscale data center with Microsoft, could open new horizons in the future.

(The article source is Emirates Integrated Telecommunications Company PJSC (du) press release.)