Du's second-quarter net profit jumps 31% on higher revenue

The telecom company's income for the three-month period stood at $108 million

Du retail store. The company's second-quarter revenue rose about 7 per cent annually to Dh3.3 billion. Photo: du
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Emirates Integrated Telecommunications Company, the Dubai telecom operator known as du, has reported a 31 per cent rise in its second-quarter net profit on higher revenue.

Net profit in the three months to the end of June was Dh397.2 million ($108 million), the company said on Wednesday in a filing to the Dubai Financial Market, where its shares are traded.

Revenue rose about 7 per cent annually to Dh3.3 billion, driven by higher demand for fixed and mobile services.

Mobile service revenue was up nearly 8 per cent to Dh1.5 billion, while fixed services revenue jumped about 11 per cent to Dh948 million on higher customer demand.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 20 per cent annually to Dh1.52 billion.

The company’s mobile customer base grew 8 per cent year-on-year to eight million subscribers as a result of net additions across the postpaid and prepaid segments.

The strong results come amid “the burgeoning UAE economy and robust non-oil sector performance”, Malek Al Malek, chairman of du, said.

“We remain committed to continuously improving our operational efficiencies and advancing our transformation projects, both of which are integral to our success.”

The UAE’s gross domestic product grew by 7.9 per cent in 2022 to reach Dh1.62 trillion at constant prices, supported by its non-oil sector as the country continues with its economic diversification strategy, according to preliminary estimates from the Federal Competitiveness and Statistics Centre.

Last month, the UAE Central Bank revised its forecast for the country's non-oil economic growth for 2023 to 4.5 per cent, from 4.2 per cent in March, amid a surge in travel and tourism.

Du's six-month profit, meanwhile, surged 25 per cent to Dh767.6 million as revenue rose more than 8 per cent to Dh6.7 billion. Finance income more than doubled to Dh27.9 million during the period.

“Our strategic, commercial and investment initiatives have yielded a high growth … making a significant contribution to our improved Ebitda and overall profitability,” Fahad Al Hassawi, du's chief executive, said.

The telecoms company is continuing to invest in the 5G network, with capital expenditure during the second quarter reaching Dh506 million.

“Our spend during the quarter was directed towards 5G deployment, expanding our fibre network and our IT transformation. Traffic on our 5G network continues to grow rapidly reflecting the higher adoption and improved customer experience,” it said.

Du also approved an interim half-year cash dividend distribution of Dh0.13 per share, according to the statement.

Updated: July 26, 2023, 6:42 AM