Du reports robust Q1 2025 financial results, with revenues and profits experiencing significant growth.
Du Tearing Up 2025 With Groundbreaking Growth
Emirates Integrated Telecom, known as du, is kicking off the year with a bang, leaving its competitors in the dust. The telecommunications powerhouse reported a whopping 7.4% year-over-year surge in total revenues, reaching an impressive AED 3.8 billion. This stellar performance was fueled by strong growth across its service and non-service segments.
The company's EBITDA skyrocketed a staggering 15% to AED 1.8 billion, propelling the EBITDA margin to an enviable 47.4%. Net profit experienced an even more dramatic increase of 19.8%, reaching AED 722 million, demonstrating impressive cost control and operational discipline.
Fahad Al Hassawi, du's CEO, hailed the quarter as a "very strong start" to the year and attributed the success to a robust UAE market, evolving consumer demands, and the company's strategic focus on diversification. One of du's strategic steps in this direction is its partnership with Microsoft to develop a cutting-edge hyperscale data center, signaling its ambitions to break free from traditional telecom offerings.
Mobile service revenues inched up 7.4% to AED 1.7 billion, driven by steadily growing subscriber numbers and increased demand for premium services. The mobile user base now stands at over nine million subscribers. Fixed service revenues exhibited an impressive 10.2% boost to AED 1.1 billion, propelled by higher fiber penetration and strong performances from home and enterprise connectivity products.
Income streams beyond mobile and fixed services grew by 4.8%, despite handset sales taking a slight dip compared to Q1 2024. The previous year saw a demand surge due to earlier supply constraints.
Du's capital expenditure stood at AED 377 million, with investment continueing in 5G infrastructure, fibre rollout, and IT transformation. Operating free cash flow soared by 17.9% to AED 1.4 billion, fueled by EBITDA growth.
The company maintained its optimistic full-year guidance, citing strong momentum and a favorable outlook for sustained growth.
Du has been making waves in the digital space, championing innovation and transformation beyond conventional telecom services. The company's strategic efforts are geared towards digital leadership, utilizing technologies like cloud computing, AI, cybersecurity, and IoT to fuel tailor-made enterprise and consumer solutions.
Their digital-first approach is backed by ultra-reliable fiber and 5G technology, showcasing their commitment to lead the digital transformation. Moreover, they are actively engaging with industry leaders, such as hosting a recent roundtable with Hewlett Packard Enterprise to discuss the future of AI, hybrid cloud, and networking within the banking sector.
Du's Future X Graduate Program underscores their dedication to nurturing digital talent. The program is structured around four pillars: Digital Talent Learning, Culture of Innovation & Excellence, Adaptability & Integrity, and Collaboration & Engagement, ensuring that the next generation of workers is equipped to handle the challenges of emerging technologies.
Sustainability is also a key part of du's strategy, aligning with the UAE's Net Zero by 2050 vision. The company has implemented 169 solar-powered telecom sites and optimized network operations to reduce its carbon footprint, setting a strong example for sustainable business practices.
- Du's strategic partnership with Microsoft and focus on technologies like cloud computing, AI, cybersecurity, and IoT indicate a financial investment in technology to drive both enterprise and consumer solutions, signifying a transformation beyond traditional telecom offerings.
- In line with its dedication to digital leadership, du has been investing in 5G infrastructure, fibre rollout, and IT transformation, which are crucial components of its plan to lead the digital transformation in the business sector and contribute to the UAE's Net Zero by 2050 vision.
