du Posts Strong Q1 2024 Financial Performance with Notable Growth Across All Sectors

A futuristic telecommunications scene in landscape format, depicting the dynamic growth of du's telecom services. The image features a modern, high-tech

Emirates Integrated Telecommunications Company, known as du, reported a 4.1% increase in revenues, reaching AED 3.58 billion ($974 million) in the first quarter of 2024, showcasing sustained commercial momentum and competitiveness in the market.

The company’s EBITDA saw a significant rise of 16.2% to AED 1.59 billion, attributed to growth in top-line revenues, margin expansion, and ongoing enhancements in operational efficiency. Consequently, the EBITDA margin widened by 4.6 percentage points to an impressive 44.3%.

Net profit for the quarter soared to AED 603 million, marking a 62.7% increase year-on-year, primarily due to robust EBITDA performance. Capital expenditure (Capex) was reported at AED 359 million, while Operating Free Cash Flow (EBITDA minus Capex) for the year increased by 28.2% to AED 1.2 billion.

In a strategic move to expand its digital services, du launched “du Pay” on April 1, a digital financial service aimed at advancing the UAE’s goals of innovation, competition, and financial inclusion. Positioned to leverage du’s strong brand and extensive customer reach, “du Pay” aims to accelerate the transition to a cashless economy and digitalization by offering superior financial services.

Operational highlights include a 5.7% growth in the mobile customer base to 8.7 million subscribers, driven by successful commercial campaigns and attractive consumer offers. The postpaid segment grew by 10.1% to 1.7 million subscribers, while the prepaid segment increased by 4.7% to 7 million customers.

The fixed customer base also saw a significant increase of 11.1% year-over-year to 616,000 subscribers, highlighting the success of du’s strategic offerings, particularly in Home wireless plans and broadband services.

Financially, mobile service revenues grew by 7.4% to AED 1,602 million, primarily fueled by higher postpaid revenues from enterprise sectors and compelling consumer plans. Fixed service revenues also grew by 2.7% to AED 961 million, driven by the popularity of Home Wireless and enterprise broadband plans.

With a focus on strengthening its infrastructure, du’s capital investments are geared towards enhancing 5G coverage and fiber deployment, alongside ongoing transformations in IT and network infrastructure. The company’s robust cash flow generation continues to strengthen its balance sheet, enabling future growth and value creation for shareholders.

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