Emirates Integrated Telecommunications Company PJSC announced on Monday that its Q2 2024 revenues increased by 7.3 per cent to Dh3.6 billion.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 3.2 per cent to Dh1.6 billion reflecting the top line growth. Net profit reached Dh581 million, a 46.3 per cent increase year over year primarily reflecting the strong Ebitda growth. Capex was at Dh442 million, while Operating Free Cash Flow (Ebitda – Capex) was Dhat 1.1 billion, a 10.9 per cent increase year over year.
The company’s mobile customer base grew 2.9 per cent year-over-year to 8.2 million subscribers, while tapering over the quarter, reflecting the typical seasonality impact. The postpaid customer base grew by 11.3 per cent year over year to 1.7 million subscribers. The prepaid customer base grew by 0.9 per cent to 6.5 million customers with voice and data growth offset by a normalisation of the tourist influx.
The fixed customer base rose by a 12.7 per cent year-over-year to 630,000 subscribers, with net-additions of 15,000 subscribers over the quarter. “Our Home Wireless plans continue to be the main growth driver boosted by new attractive offerings such as the launch of Home Wireless Gaming, while enterprise connectivity also performed strongly during the quarter,” EITC said in a statement.
Mobile service revenues grew 6.6 per cent year-over-year to Dh1,612 million primarily driven by robust growth in postpaid revenues, increased demand from the enterprise sector and the success of our innovative offers. The growing subscriber base also positively impacted mobile revenues. Fixed service revenues increased by 3.5 per cent to reach Dh982 million, with the growth primarily attributed to our Home Wireless product and enterprise broadband plans which remain extremely attractive.
Other revenues increased by 12.7 per cent to Dh998 million, driven by strong growth in revenues from ICT and wholesale services.
Capex was Dh442 million (Q2 2023: Dh504 million). Capital intensity is moderating at 12.3 per cent (Q2 2023: 15.1 per cent) and reflecting a typical capex phasing pattern. Focus of our investment programme continues to be enhancement of the 5G coverage, fibre deployment and the ongoing transformation of our IT and network infrastructure.
Malek Al Malek, Chairman said: “The first half of 2024 saw EITC deliver another record set of results. The management remained focused on strategy execution, delivering profitable growth in our core business and beyond and creating value to our shareholders. The company remained at the forefront of technological innovation to offer the best experience to our customers in areas including Fintech and AI. The Company’s strategy to deliver unmatched experiences to customers has resulted in the du brand now being the 3rd strongest in the UAE. The country’s macro-economic environment was very supportive to our activity and we remain well positioned to support the UAE government digital strategy, as demonstrated by the plan to launch Hyperscale Cloud and Sovereign AI Services for the Government. Reflecting our dedication to excellence in governance, we made strategic additions to our Board of Directors by welcoming four new members with valuable experience and perspectives. In light of our sustained strong performance and healthy balance sheet, I am pleased to announce that the Board of Directors approved the distribution of an interim cash dividend of Dh0.20 per share, representing an increase of 53.8 per cent compared to interim dividends of 2023. This reflects the Board’s confidence in the Company’s ongoing success and outlook and our commitment to delivering value to our shareholders.”
Fahad Al Hassawi, CEO said: “Our unwavering commitment to excellence, our focused strategy and efficient resource management have enabled us to deliver another strong operational and financial performance in the second quarter of the year. We have grown our subscriber base, revenues, profitability and cash generation, solidifying the stellar start we made this year. Our commercial momentum led to a strong growth in our service revenues in Q2 buoyed by significant large enterprise deals with a robust pipeline of new projects as well as the launch of new innovative consumer products. In Fintech, the first full quarter of du Pay has exceeded our expectations, marking a significant milestone in our innovation journey and further expanding our market reach capabilities. Our results for the first half give us full confidence in delivering our upward revised full year financial guidance. Going forward we will remain focused on executing our strategy and are committed to investing in our future, enhancing 5G coverage and continuing to transform our IT and network infrastructure, thus building a solid foundation for long-term growth and creating value for our shareholders.”