Emirates Integrated Telecommunications Company (EITC), better known as Du, on Tuesday reported total revenue of AED11.08 billion and a net income of AED1.44 billion for 2020.
The figures were down from AED12.59 billion and AED1.73 billion respectively for the previous year but the company said they showed the “resilience of its model in a difficult operating environment caused by the Covid-19 pandemic”.
EITC said its capital expenditure increased by 24.1 percent year-on-year to AED1.87 billion, its highest level over the last five years.
On the basis of these results, the board recommended to shareholders the approval of a dividend distribution for the year 2020, of 28 fils per share, out of which 13 fils per share were paid in August as an interim dividend.
Q4 revenues increased by 1.9 percent, compared to Q3, to AED2.74 billion, as economic activity continued to recover from the impact of the pandemic, the telco added.
Q4 net income was AED48 million due to a one-off goodwill write-off of AED137 million pertaining to the company’s broadcasting business, impacted by the Covid-19 pandemic which led to changing consumer preferences in the way that content is consumed, it also said.
Mohamed Al Hussaini, chairman of EITC said: “2020 has been a challenging year with the unprecedented pandemic impacting all businesses locally and globally. Our business model proved solid and resilient compared to many other industries.
Mohamed Al Hussaini, chairman of EITC
“EITC has been able to navigate in a turbulent environment and ensure the efficient provision of telecommunication services, vital to the economy and the community especially in these difficult times. EITC maintained a high level of profitability of the business and continued the deployment of its transformation plans and its infrastructure roll-out and modernisation.”
He added: “2020 proved how important the telecommunication sector is for our economy and society as its infrastructure constitutes the backbone of the digital ecosystem. We remain committed to further developing and modernizing our infrastructure by investing in future technologies.”
Fahad Al Hassawi, acting CEO of EITC, said: “Our business saw a positive momentum towards a gradual return to normality in the second half of 2020, as economic activity and trade and tourism resumed. We reported two consecutive quarters of positive revenue growth in the third and fourth quarter of 2020.
“EITC has demonstrated tremendous resilience during this unprecedented year as we successfully navigated the Covid-19 pandemic, while keeping our employees safe, and our customers connected.”
EITC was founded in 2005 as the UAE’s second licensed telecommunications provider and is 50.12 percent owned by Emirates Investment Authority, 19.7 percent by Emirates International Telecommunications, 10.06 percent by Mamoura Diversified Global Holding and the remaining by public shareholders and national companies.
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