Dubai telecom operator du has said that its fiscal guidance for this year remains unchanged despite the current geopolitical situation, cautioning against any premature assessments as its operations have remained "fully resilient".
Du - formally known as Emirates Integrated Telecommunications Company - acknowledged that operations last month were affected by the US-Iran war, which began on February 28.
The conflict caused a shift in the environment last month, that "resulted in significant reduction of tourist inflows and inbound roaming activity, some pressure on gross subscriber additions, and short-term ARPU [average revenue per user] softness as both consumers and businesses moderated discretionary spending", said chief executive Fahad Al Hassawi said.
Usage patterns also changed with increased remote working and learning.
Despite this - and with an "excellent" January and February - du continues to benefit from "a resilient business model supported by strong fundamentals and a solid balance sheet", he said.
"With near‑term uncertainty remaining elevated, du continues to adapt to the situation and manage its business in an agile manner to cope with changing operating environment."
Mr Al Hassawi stressed that the company is continuing to monitor business conditions closely, assessing and adjusting to the evolving situation.
"We are maintaining our full-year guidance for the time being, as we believe additional clarity and data are required before providing further visibility."
For the first quarter, du's net profit jumped 15.5 per cent year on year to about Dh834.2 million ($227.1 million), it said in a filing to the Dubai Financial Market, where its shares trade.
Revenue for the three-month period ended March 31 grew 6.7 per cent annually to more than Dh4.11 billion, underpinned by "strong commercial momentum", particularly during the first two months of the year. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins reached 49.5 per cent.
For this year, du is expecting revenue growth of between 5 per cent and 7 per cent, with Ebitda margins at 46 per cent to 47 per cent, according to its website.
Its priorities for the year include boosting its core business, expanding its data centre operations, and growing its du Pay and adjacent digital services, the company said in the statement.
Du has been supported by "uninterrupted network operations and solid underlying fundamentals, demonstrating the resilience of du’s business model in a highly atypical operating environment", it said.
