EITC reports a 5.4% growth in full-year revenues to Dhs11.7 billion

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Malek Sultan Al Malek

Emirates Integrated Telecommunications Company (EITC) announced its financial results for the year-ended 31 December 2021. Full-year revenues grew by 5.4% to Dhs11.7 billion on sustained demand for broadband services and 5G handsets as well as a gradual recovery of mobile services.

Revenues in Q4 staged a remarkable growth (+12%) thanks to several commercial initiatives supported by improving market conditions. Full-year EBITDA grew by 1.9% to Dhs4.6 billion reflecting revenue growth and cost saving initiatives. We note the exceptional performance in Q4 as EBITDA increased by 20.5%. Net profit for the year reached Dhs1.1 billion. In 2021, EITC invested a record amount of Dhs2.6 billion as evidenced by the rapid 5G network roll-out. Despite the magnitude of investments, Operating Free Cash Flow (EBITDA – Capex) for the year remains strong at Dhs2 billion.

On the basis of these results, the Board recommends a dividend, for the year 2021, of 21 fils per share, out of which 10 fils per share were already paid as an interim dividend on 24 August 2021.

The company Mobile customer base grew by a remarkable 8.9% year-over-year and ended the year with 7.3 million subscribers on record net-additions in Q4. This growth reflects the growth in postpaid customers as well as a significant increase in prepaid customers during Q4. Our postpaid customer base grew to 1.3 million reflecting our continuous focus on both the consumer and enterprise segments. Our prepaid customer base increased to 5.9 million subscribers thanks to the release of mobility restrictions (domestic and international) and higher tourist activity driven by Expo 2020.

Fixed customer base increased by an impressive 66% year-over-year. We ended the year with 390,000 subscribers on another record net-additions in Q4. Our customer base has grown consistently throughout each quarter. This solid performance was driven by our commercial initiatives across various product categories and the disciplined execution of our broadband strategy.

Malek Sultan Al Malek, Chairman commented, “While 2020 was challenging and tumultuous, 2021 was a year of recovery and transformation. In 2021, we returned to growth thanks to our consistent and disciplined strategy execution supported by a gradual improvement of market dynamics. During the year, we continued our ambitious investment program to accelerate the transformation and deployment of our infrastructure into a next-generation network for the benefit of our customers. We also fine-tuned our operational model and governance to evolve with our market, our industry and our customers’ needs. In 2021, we generated a Net Profit of Dhs 1.1 billion and an operating free cash flow of nearly Dhs 2 billion. Despite significant investments, our business remains very cash generative and our balance sheet solid with Dhs 5.6 billion in available liquidity.

I am pleased to announce that, on the basis of our financial results, the Board is recommending a dividend, for the year 2021, of 21 fils per share, out of which 10 fils per share were already paid in August 2021 as an interim dividend. This corresponds to a distribution of 96% of net profit after appropriation for statutory reserves.”

Fahad-Al-Hassawi
Fahad Al Hassawi

Fahad Al Hassawi, CEO said: “While 2021 presented its set of challenges, EITC emerged stronger and with an even greater sense of purpose. We built a tremendous commercial momentum by focusing on our customers. We are anticipating their requirements and we provide them innovative products and services. This drove an increase in our postpaid mobile and broadband customer base in the last quarter. I am proud that we delivered growth in service revenues. Fixed service revenue trends from the consumer and enterprise segments remain buoyant. I am especially pleased to report that mobile service revenues returned to growth in Q4 following 12 consecutive quarters of decline. This vindicates our strategic roadmap and we have no plans to slow down.”




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