TLDR:
Q3 profits hit record highs
Revenue rises with new sub-brands
Digital growth partnerships announced
DUBAI (The Thursday Times) — Emirates Integrated Telecommunications Company PJSC, widely recognised as du, has reported a significant rise in profits and revenue for the third quarter of 2024, showcasing its continued evolution into a comprehensive telecom and digital services provider. For the nine months leading to this quarter, the company achieved a 49.7 percent increase in net profit, reaching AED1.9 billion, driven by robust commercial momentum, a dedicated strategy, and cost-efficiency. Notably, EBITDA margins, now at a high 48.3 percent, reflect du’s successful optimisation efforts and ongoing transformation beyond core telecom services.
Expanding digital services through B2B and partnerships
B2b for du saw a pivotal enhancement this quarter, with the introduction of two new sub-brands, du Tech and du Infra. This strategic move aims to broaden du’s services across the digital spectrum, increasing market reach and promoting comprehensive digital transformation. The addition of these brands signals du’s intention to establish itself as a leader in the digital ecosystem, setting a foundation for future growth in areas beyond traditional telecommunications. Furthermore, a new global partnership with telecom giant Orange bolsters du’s commitment to driving innovation, enhancing its infrastructure, and supporting large-scale digital transformation initiatives.
Record growth in profits and revenue
The telecom’s consistent focus on operational efficiency is apparent in its financial achievements, with a remarkable increase in Q3 revenue by 9.1 percent, resulting in AED3.6 billion. This upward trend, matched by EBITDA growth of 16.9 percent to AED1.7 billion, is underscored by an impressive margin of 48.3 percent, setting a new record since du’s inception. This strong performance also extended to net profits, which surged by 42.7 percent, reaching AED719 million—the highest quarterly figure in three years. Du’s CEO, Fahad Al Hassawi, emphasised the company’s strategy of reinforcing core services while diversifying its reach, a formula that has consistently delivered results and maintained healthy cash flows.
Strategic priorities and shareholder confidence
As capital expenditures normalise, reflected in a 12.2 percent capital intensity, du’s financials indicate prudent spending and ample cash flow for future growth investments. This conservative approach to capital investment has fortified du’s position, enabling it to maintain a robust balance sheet while providing reliable returns to shareholders. Al Hassawi reiterated du’s confidence in achieving 2024 targets, underscoring the telecom’s commitment to long-term profitability and shareholder value.
