UAE-based telecom operator Emirates Integrated Telecommunications Company (du) said Tuesday its second-quarter net profit surged 46.3% year-on-year to $158.2 million (AED 581 million).
The company's revenues rose 7.3% to $980.1 million (AED 3.6 billion) for the April–June quarter of this year amid strong product offerings and robust expansion in its mobile and "other revenues," showed a regulatory filing posted on the Dubai Financial Market (DFM).
Solid growth in Du's postpaid revenues, higher demand from the enterprise sector, and successful innovative offers helped its revenues from the mobile services division to grow by 6.6% year-over-year to $438.9 million (AED 1.6 billion) during the second quarter of 2024. Similarly, its fixed service revenues climbed 3.5% year-on-year to $267.4 million (AED 982 million), largely driven by the sustained demand for its home wireless product and enterprise broadband plans, noted the DFM filing.
The Dubai-headquartered firm's "other revenues" totaled $271.7 million (AED 998 million) in the second quarter, registering a 12.7% decline due to higher revenues from its ICT and wholesale services. Du's earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased 3.2% year-on-year to $427.4 million (AED 1.6 billion) for the three months.
Its operating free cash flow surged 10.9% year-on-year to reach $306.8 million (AED 1.1 billion) in the second quarter of the year, demonstrating expansion in its EBITDA and moderation in its capital expenditure. Crucial quote
In light of our sustained strong performance and healthy balance sheet, I am pleased to announce that the Board of Directors approved the distribution of an interim cash dividend of AED 0.20 per share, representing an increase of 53.8% compared to interim dividends of 2023," said Du Chairman Malek Al Malek.
Du shares were up 1.8% to $1.7 (AED 6.1) as of 10:20 am GST Tuesday, bringing its market capitalization to $7.5 billion (AED 27.7 billion).
