A strong uptick in subscriber numbers across all areas of business led to a 7.4 per cent jump in total revenues and 19.8 per cent growth in net profit for UAE telecom provider du (Emirates Integrated Telecommunications Company).
The company released its financial results for the first quarter of 2025, with revenues reaching AED3.8 billion (US$1.03 billion). Growth in both service and non-service revenues was primarily driven by the strong macro environment in the UAE, as the company focused on gaining market share, and high ARPU (average revenue per user) products and mix improvement.
EBITDA grew by 15 per cent to AED1.8 billion (US$490 million), with an EBITDA margin of 47.4 per cent. Revenue growth, improved mix, increased ARPU, lower handset sales and lower authentication costs, as well as the positive impact of the non-recurring revenue items resulted in higher gross margin. This was coupled with improved collections performance and operational efficiency and strong control of indirect costs.
Net profit for Q1 reached AED722 million (US$196.6 million), representing a net profit margin of 18.8 per cent reflecting the strong EBITDA performance and positive interest result.
The company spent AED377 million (US$102.7 million) on capital expenditure, compared to AED359 million in Q1 last year, with main investments on 5G densification, enhancing indoor coverage and expanding fibre deployment.
Commenting on the result, CEO Fahad Al Hassawi reiterated du’s guidance for the year and said: “We started the year with a very strong first quarter, delivering growth across all key financial metrics and making meaningful progress on our strategy to diversify revenue streams as witnessed by the strategic partnership with Microsoft to develop a hyperscale data centre.
“The resilient UAE environment, coupled with the quality of our offerings and our ability to respond to evolving customer needs, contributed to the solid growth in our subscriber base with our mobile base now exceeding the 9 million mark and our revenues witnessing a remarkable 7.4 per cent growth.
“We also achieved a strong margin expansion, with EBITDA margin rising to 47.4 per cent while net profit grew by 19.8 per cent, reflecting disciplined execution of our strategy and effective cost management. Our balance sheet remains robust supported by strong cash generation and the continuing normalisation of capital expenditures in our connectivity business.
“We have reiterated our guidance, highlighting our confidence in maintaining this strong momentum throughout the year.”
Growing subscriber base
The company’s mobile customer base grew by 5.5 per cent year-over-year, crossing the 9 million mark. Net addition of 475,000 subscribers saw the number reach 9.1 million at the end of the first quarter.
Postpaid was a strong engine of growth, with an increase of 9.6 per cent year-over-year to 1.8 million customers. This was driven by Enterprise, where du introduced several innovative offerings. The Prepaid base grew by 4.5 per cent to 7.3 million customers.
New offers, such as the upgraded Home basic plan and Office wireless plan (including managed services) saw Fixed customer base grow 13.8 per cent YoY to reach 701,000 subscribers. There were 19,000 net additions in the first quarter and 85,000 over the past 12 months.
Fixed service revenues for Q1 rose by 10.2 per cent YoY to AED1.1 billion (US$300 million) mainly due to the higher fibre penetration and the continuing success of Home Wireless product and Enterprise connectivity solutions.
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