The third-quarter net profit of Emirates Integrated Telecommunications Company, also known as du, increased by 12.7% as service revenue and gross margins increased.
According to a filing the firm made on Tuesday to the Dubai Financial Market, where its shares are traded, profit for the three months ending September 30 increased to Dh319 million ($86.8 million) from Dh283 million a year earlier.
Revenue increased 10.5% annually to Dh3.17 billion from Dh2.87 billion, the business reported, as demand for its mobile and broadband services remained strong.
Capital expenditures increased 93.5 percent annually to Dh724 million from Dh374 million, while earnings before interest, taxes, depreciation, and amortization increased by 18.5% to Dh1.3 billion from Dh1.1 billion a year earlier.
According to Fahad Al Hassawi, chief executive of EITC, the UAE government’s efforts to support the economy following the coronavirus pandemic helped industries recover at a much faster pace than most other parts of the world, with the telecom industry in particular experiencing a rebound in subscriber numbers.
“We see things becoming even better than pre-pandemic levels. This is a very positive environment that we operate in and this is what makes me extremely optimistic on next year as well, with all the momentum that was created this year,” he said.
According to Mr. Al Hassawi, the company will continue to boost investments in 2023, concentrating mainly on network and fiber infrastructure, which will always receive the “lion’s share.”
Net profit increased by more than 18% for the nine months ending September 30 from Dh780.2m to Dh922.4m, while revenue increased by 9.3% to Dh9.4bn from Dh8.6bn.
According to Mr. Al Hassawi, the company does not provide guidance for its full-year financial report.
Due to the pandemic’s consequences, Du’s full-year net profit for 2021 decreased by roughly 24% to Dh1.1 billion, even though revenue increased by 5.4% to Dh11.68 billion.
“All market indicators look positive. We are very happy to see that the UAE and this region are continuing to see strong growth, so we are very optimistic about 2023,” he said.
In keeping with the UAE’s economic expansion, Mr. Al Hassawi stated last month at Dubai’s Gitex Global exhibition that du was moving forward with greater investments in its infrastructure and data centers.
In an effort to improve its network capabilities, the corporation is also developing a “strong programme” to take use of the metaverse’s potential, chief technology officer Saleem AlBlooshi told The National earlier in October.
However, Mr. Al Hassawi stressed on Tuesday that this must “really address needs” if Du is to introduce the metaverse to other parts of its company, particularly its enterprise and consumer bases.
“We are looking at all of this — definitely, this is something that is part of our plans. We are working with our partners in terms of finalising how and where [it will be implemented],” he said.
According to the regulatory filing, du’s mobile services unit’s third-quarter revenue increased 10.7% yearly to more than Dh1.4 billion, with equipment sales contributing Dh176 million.
As the consumer segment continued to perform strongly, revenue for fixed services increased by 22.2% annually to Dh892m, the company reported.
Du added around 32,000 new customers to its postpaid segment, bringing the total to about 1.4 million, growing its mobile subscriber base by 14.7% to 7.4 million subscribers. This is the seventh consecutive quarter of growth for the postpaid segment. Six million prepaid users remained constant.
The business added that it has a debt-free balance sheet because it fully returned Dh200 million in credit facility borrowings during the third quarter, leaving du with a net cash position of Dh910 million and Dh3.8 billion in undrawn credit lines.
According to Mr. Al Hassawi, the outcomes put the pany in a position to expand its investments and services in 2019.
“We are one of the few companies that continued to invest in our network and capabilities [even during the pandemic], and this was a very wise decision as today we are seeing all these good results,” he said.