Post by : Badri Ariffin

Emirates Integrated Telecommunications Company PJSC, known as du, has unveiled impressive financial outcomes for the first quarter concluded on 31 March 2026. Despite experiencing a slowdown in March caused by geopolitical tensions in the region and a decline in travel activity, the company demonstrated remarkable growth.

For this quarter, du reported a revenue of AED 4.1 billion, representing a year-on-year increase of 6.9%. This growth was primarily fueled by solid performances in January and February across mobile, fixed, and enterprise sectors. However, March saw a dip in demand attributed to fewer tourist visits, lower roaming activities, and a slowdown in new subscriber additions.

The company’s EBITDA increased by 11.7% to AED 2.0 billion, achieving an unprecedented EBITDA margin of 49.5%. Additionally, net profit escalated 15.5% from the previous year to AED 0.8 billion, bolstered by improved EBITDA and disciplined cost management.

Operating free cash flow exhibited a notable rise of 14.2% to AED 1.7 billion, indicating robust earnings and judicious capital expenditures, with quarterly capital expenditure recorded at AED 386 million, resulting in a capital intensity of 9.4%.

The mobile subscriber base witnessed a growth of 6.1%, reaching 9.7 million, along with a 9.6% increase in postpaid users to 2.0 million. Prepaid growth, at 5.2%, benefited from versatile value plans. The fixed-line customer base expanded by 6.3%, totaling 745,000, driven by demand for home wireless and fiber services.

du underscored its ongoing robustness in enterprise connectivity and ICT services, alongside consistent growth in its digital service offerings. Although March posed temporary challenges in usage patterns, particularly with roaming and prepaid services, network operations remained stable and unaffected.

Financial health appeared strong, marked by a substantial net cash position and no financial leverage. In April, du successfully refinanced a AED 2 billion revolving credit facility, enhancing it to a 7-year term under improved conditions, thus bolstering liquidity and financial flexibility.

As du continues to navigate market conditions diligently, the company affirmed its intention to uphold its full-year guidance.

#Global News #Dubai News #UAE News #World Update