303 million dirhams, net profit of “du” for the second quarter, a growth of 26.2%

T + T – normal size

The Emirates Integrated Telecommunications Company “du” achieved a 26.2% increase in its net profit to 303 million dirhams, while the company’s revenue recorded a 9.9% growth, according to the company’s financial results for the second quarter of the year ended. on June 30, 2022, to reach 3.14 billion dirhams, due to continued demand for broadband and mobile services.

The company’s earnings before interest, tax, depreciation and amortization grew by 12.1% to AED 1.27 billion, driven by higher service income and an improvement in gross profit margin.

The free cash flow from operating activities also recorded a growth of 47.7% to 709 million dirhams, thanks to the increase in profit before interest, tax, depreciation and amortization, and the gradual continuation of the return on capital expenditure to its normal course. Based on these results, the Board of Directors of Emirates Integrated Telecommunications Company approved the distribution of half-yearly cash dividends of 0.11 dirhams per share, representing a 10% increase compared to the distribution of interim dividends for the previous year.

Malik Sultan Al Malik, Chairman of the Board of Emirates Integrated Telecommunications Company, said that Emirates Integrated Telecommunications Company was able to achieve good operating and financial results during the second quarter of this year, together with the continued recovery and recovery of the sector, from end to end. last year, to now turn into a natural growth path, bringing revenue back to pre-Covid 19 levels, as well as improving profitability figures. These positive results are due to the innovative and proactive approach taken by Emirates Integrated Telecommunications Company, and its flexible operating model, which has enabled the company to keep pace with the dynamic changes in the market, and to create new and modern provide products and services in accordance with the aspirations of customers. He added: “We continue to make remarkable progress in implementing our strategic projects, which is a key factor in enabling our future initiatives, in line with the planned plans. Based on our financial results, I would like to announce the approval of the company’s board of directors to distribute a half-yearly cash dividend of 0.11 dirhams per share.

In turn, Fahd Al-Hasawi, CEO of Emirates Integrated Telecommunications Company, said that the second quarter of 2022 is the third consecutive quarter, in which the company records improvement and growth in its operating and financial performance, noting that revenue van du’s innovative services were and still are. The main driver behind the company’s profitability, the company’s services revenue in the second quarter, recorded its highest level in three years.

Al-Hasawi added, in exclusive statements to Al-Bayan, that du’s achievement of these good results is due to the flexible and proactive approach taken by the company to address challenges and keep pace with transformations, supported by the gradual improvement in market conditions and the business environment, as well as the company’s innovation of a new and comprehensive strategy. , to operate its business, and to improve its operational model and management frameworks, in line with developments observed by the sector, which were positively reflected in our financial results during the first half of 2022.

next phase

He added: “During the next phase, we will continue to focus on implementing our strategic plans and goals, in line with the requirements of growth, especially with the remarkable improvement in the business environment in the country, and the increasing tendencies on the side. of customers, especially the corporate and institutional segment, to accelerate the digitization of operations, and the adoption of information technology solutions and communications, such as cloud solutions, data center services and cybersecurity solutions. During the second half of 2022, we will continue our efforts to spread and expand the coverage of the fifth generation network, to include all parts of the UAE, and to provide the best possible coverage for our customers. At the same time, we will move forward with our strategy to explore and develop more new use cases based on 5G technology and transform them into tangible applications and services for our individual and enterprise customers.

Commenting on his assessment of the business environment in general, and the performance of the telecommunications sector in particular, during the first half of 2022, Al-Hasawi said: “There is no doubt that the business sectors, including the telecommunications sector, face many challenges. did not face. during the past two years, but the business environment in the country Since the second half of last year, it has seen a remarkable improvement and a clear recovery of various economic sectors, which coincided with the country’s presentation of the Expo. We expect the UAE economy to continue to grow during the current year, supported by the investment and trading momentum seen by the business sectors, in addition to the strategic visions and decisions taken by the UAE government to strengthen the strength and power of the UAE to improve economy, through various competitive indicators, which will certainly reflect on the performance of the telecommunications sector, from During the growth of the demand for communication technologies and solutions, and thus, increasing the revenue of the telecommunications sector and profit margins.

Operational highlights

The mobile customer base grew by 13.0% to 7.4 million subscribers as the postpaid customer segment recorded sustained growth for the fourth consecutive quarter, with net new subscribers reaching 24,000 subscribers, bringing the total number of subscribers to bringing this segment to 1.4. million subscribers. The company also closed the second quarter with a prepaid subscriber base of 6.1 million. While the segment of prepaid visitors’ customers recorded a decline, with the closure of the Expo 2020 activities, and the start of the low-intensity tourist season. Excluding visitor SIMs, the prepaid customer base was stable compared to the previous quarter.

The broadband customer base grew by 69.5% to 473,000 subscribers as the company managed to attract 35,000 new subscribers (compared to 31,000 in the second quarter of 2021). This strong performance is due to the company’s success in connecting new buildings and complexes to its fiber optic network, and the leading commercial offerings introduced by the company.

Striking financial results

During the second quarter, the company recorded a growth of 9.9% in its revenue to reach AED 3,137 million, as mobile services revenue continued to recover and recorded a growth of 8.6%, to AED 1,406 million, while revenue from mobile sales amounts to AED 196 million Emirati. Revenue from fixed line services increased by 24.4% to 855 million dirhams due to constant demand from individual and institutional clients. In total, service revenue increased by 14.1% to AED 2.261 million.

EBITDA increased 12.1% year-on-year to AED 1.267 million. This remarkable improvement in profit is mainly due to the increase in service income and the improvement in the gross profit margin. EBITDA margins also expanded by 80 points to 40.4% due to the high profitability of mobile and fixed services.

The company’s net profit during the first quarter recorded a growth of 26.2% and reached 303 million dirhams, as the impact of higher profits was partially offset by higher depreciation costs and increased franchise fees.

The company’s capital expenditure stabilized at 558 million dirhams, with a capital density of 17.8%, and this stability reflects the seasonal nature, as most capital expenditure is usually injected in the second half of the year. The second quarter witnessed the continued return of capital expenditure to its normal course, after two consecutive years of capital intensity increase.

Free cash flow from operating activities increased by 47.7% to AED 709 million due to improved EBITDA and lower capital expenditure.

Summary of financial results

Million Dirhams Second Quarter 2021 Second Quarter 2022 Change

Income 2,855 3,137 9.9%

EBITDA 1,130 1,267 12.1%

Margin 39.6% 40.4% 0.8 pips

Net profit 240,303 26.2%

Capital expenditure 650 558 -14.1%

Capital density 22.8% 17.8% -5.0 Points

Free cash flow from operating activities 480 709 47.7%


Leave a Comment