Emirates Integrated Telecommunications Company (EITC) has reported a 31.2% increase in net profit to AED397 million ($108.08 million) during the second quarter (Q2) of this year on the back of strong demand for postpaid mobile and fixed services.

 

EITC operates under two brands: du (launched in 2007) and Virgin Mobile, the region’s first digital service (started operations in September 2017).

 

Revenues increased 8.9% to AED3.35 billion and EBITDA jumped 20% to AED1.52 billion. Operating Free Cash Flow (EBITDA – Capex) grew by 43.3% to AED1 billion, the company said. 

 

Operating highlights 

• Reflecting the company’s focus on delivering innovative services and personalised experiences to its customers, its mobile customer base grew 8% y-o-y to 8 million subscribers while tapering over the quarter. Its Unlimited data plans and growing demand from the enterprise sector delivered eighth consecutive quarter of postpaid net-additions (13,000). Its prepaid customer base grew 7.4% y-o-y to register 6.5 million customers, despite declining over the quarter reflecting the typical seasonality impact. 

• The company’s fixed offering continues its growth with 559,000 broadband customers, representing 18.3% growth year-over-year. The continued expansion of its fibre network and the disciplined execution of our broadband strategy supported another quarter of steady performance. 

 

The company’s capex spend was AED506 million during the quarter. The spend was directed towards 5G deployment, expanding our fibre network and our ongoing IT transformation.  Traffic on its 5G network continues to grow rapidly reflecting the higher adoption and improved customer experience.

 

Malek Al Malek, Chairman, commented: “Amid the burgeoning UAE economy and robust non-oil sector performance, we have persevered in sustaining our momentum, yielding an exceptional array of results. I take great pride in our proactive and dynamic commercial strategy, coupled with our unwavering dedication to excellence that has catalyzed EITC to ascend to new heights and spurred strong performance across all key financial indicators. We remain committed to continuously improving our operational efficiencies and advancing our transformation projects, both of which are integral to our ongoing success. Considering these factors and our solid performance, it is with pleasure that I announce the Board of Directors’ approval of an interim half-year cash dividend distribution of AED 0.13 per share.”

 

Fahad Al Hassawi, CEO said: “I am very pleased with our performance this quarter, as our financial results highlight our ongoing dedication to executing our strategy of enhancing customer experience and offering innovative products, services and solutions. The strong demand for our Unlimited Data Power Plans, has allowed us to add 13,000 mobile postpaid customers during this period. Furthermore, we have consistently expanded our broadband customer base by acquiring over 5,000 home wireless and fibre clients, demonstrating our ability to excel in a rapidly evolving business environment. 

 

“Our strategic, commercial and investment initiatives have yielded a high growth of 8.9% in our service revenues, making a significant contribution to our improved EBITDA and overall profitability.  This success is a testament to our continuous commitment to creating shareholder value for our shareholders through enhanced profitability and a stronger market position. We remain resolute in our disciplined cost management approach and our dedication to investing in high-growth opportunities. This unwavering focus drives our transformation journey as a digital-first telecom operator, committed to delivering an unparalleled customer experience. I take immense pride in our sustained commercial vitality and the role it plays in achieving our goals,” he said. – TradeArabia News Service