Wednesday, January 22, 2025
Wednesday, January 22, 2025
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Capital gains help du to register 116% profit growth in third quarter

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  • Stripping off the AED519m benefit from AED824m, the net profit is down 19.95% to AED305m.
  • Operator’s third-quarter revenues decrease by 10.33% to AED2.69b.
  • Mobile revenues up 2% to reach AED1.33b.

Dubai: Capital gains derived from the sale of its 26 per cent stake in Khazna datacentre helped Emirates Integrated Telecommunications Company (EITC), the parent company of du, to register 116.2 per cent year-over-year growth in the third quarter of the year to AED824 million.

On September 15, 2020, EITC announced the sale of its stake for AED800 million.

Stripping off the AED519 million benefit, the net profit is down 19.95 per cent to AED305 million compared to AED381 million a year ago.

The telecom operator’s third-quarter revenues decreased by 10.33 per cent to AED2.69 billion compared to AED3 million a year ago.

“At EITC, we have been quick in adapting and responding to the market disruptions. We have launched a new operating model, underpinned by an acceleration in digital transformation. The new operating model is designed to deliver growth in a digital world, and with it, long-term returns for our shareholders,” Fahad Al Hassawi, Acting CEO of EITC, said.

Dubai-based operator’s third-quarter EBITDA improved by 9.8 per cent to AED1.16 billion compared to AED1.05 billion registered in the second quarter of this year, resulting from the combination of several factors including a better revenue mix that led to an improvement of the gross margin, the reduction in bad debt provisions compared to the second quarter and the delivery of cost efficiency initiatives initiated at the beginning of the second quarter.

Mobile revenues were up two per cent to reach AED1.33 billion compared to AED1.31 billion in the second quarter as the mobile subscriber base grew by 2.8 per cent quarter on quarter to 6.59 million subscribers.

When compared to a year ago, the mobile subscribers fell 14.4 per cent from 7.7 million.

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