Emirates Integrated Telecommunications Company PJSC (du) started the year with a solid performance, reporting a 19.8% rise in net profit for the first quarter of 2025. Net profit reached AED 722 million, driven by revenue growth and disciplined cost control.
The company’s total revenue rose by 7.4% year-over-year to AED 3.8 billion. This growth came from both service and non-service segments. du also reported a 15% jump in EBITDA, which stood at AED 1.8 billion, with a strong margin of 47.4%.
Strong Mobile and Fixed Services Performance
Fahad Al Hassawi, CEO of du, described the quarter as a strong start to the year. “We delivered growth across all key financial indicators. Our strategy to diversify revenue is working well, as seen in our recent partnership with Microsoft to build a hyperscale data centre,” he said.
The company’s mobile subscriber base crossed 9 million, reflecting growing demand and improved service offerings. Mobile service revenue increased 7.4% year-over-year to AED 1.7 billion. The growth came from more customers, higher average revenue per user (ARPU), and better-targeted offers.
Fixed service revenue also saw a strong rise. It grew by 10.2% to AED 1.1 billion. This was led by broader fibre coverage and strong demand for Home Wireless and enterprise connectivity products.
ICT, Roaming Revenues Boost “Other” Segment
Other revenues grew 4.8% year-over-year to AED 1.1 billion. The increase was due to the growth of du’s ICT business and higher tourist inflows that boosted inbound roaming income. Interconnection revenue also rose thanks to a larger mobile base.
However, handset sales declined. This drop was linked to higher sales in Q1 2024, when demand was pulled forward due to earlier supply issues. That led to a strong comparison base this year.
Margin Gains and Capital Discipline
du’s strong revenue mix and lower handset sales helped improve gross margin. The company also cut authentication costs and maintained tight control over indirect expenses.
Operating free cash flow grew by 17.9%, reaching AED 1.4 billion. Capital expenditure stood at AED 377 million, slightly higher than the AED 359 million in Q1 2024. Capex intensity was 9.8%, a slight drop from 10.0% last year.
Investments focused on 5G expansion, fibre deployment, and indoor coverage upgrades. du also continues to enhance its IT systems and infrastructure to improve network quality and customer experience.
Positive Outlook for 2025
The company reaffirmed its full-year guidance. It expects continued momentum, with growth supported by a stable UAE economy, high-value offerings, and a clear expansion strategy.
“Our results reflect strong execution and a solid foundation for future growth,” Al Hassawi noted. “With a healthy balance sheet and strong cash flow, we are well-positioned to invest in new areas and improve customer value.”
du’s performance highlights the strength of the UAE’s telecom sector, as demand for digital services, cloud, and advanced connectivity continues to rise.
