du Reports Its Q1 2025 Results With 19.8% Net Profit Increase

Emirates Integrated Telecommunications Company PJSC (du) reported its financial results for the first quarter of 2025, marked byrobust growth in both revenues and profitability. Total revenuesincreased by 7.4% year-over-year, driven by solid performance across both service and non-service segments. EBITDA rose by animpressive15.0% supported by improved revenue mix and efficient cost management,resulting in an exceptional EBITDA margin of 47.4%.This operational strength translated into a net profit increase of 19.8%, underscoring our continued momentum and financial discipline.

Q1 2025Highlights

• Continuing commercial momentumresulting in 7.4% revenue growth to AED 3.8bn
• Solid growth ofmobile and fixed subscriber base with mobile exceeding 9 million subscribers
• Strong profitability withEBITDA increasing by 15.0% to AED 1.8bn, EBITDA margin up by 3.1pp to 47.4%and net profit upby 19.8% to AED 0.7bn
• Key milestone achieved in expanding ICT footprint through a strategic partnership with Microsoft to build state-of-the-art hyperscale datacentre in the UAE
• du Pay celebrates one year of activitywith half a million app downloads and half a billion dirhams in transactions

Financial Summary

Fahad Al Hassawi, CEO commented:

“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 andour revenues witnessing a remarkable7.4% growth. We also achieved a strong margin expansion, with EBITDA margin rising to 47.4% while net profit grew by 19.8%, reflecting disciplined execution of our strategy and effective cost management.Our balance sheet remains robustsupported by strong cash generationand the continuing normalization of capital expenditures in our connectivity business, enabling usto strategically expand into high-potential growth areas. We have reiterated our guidance, highlighting our confidence in maintaining this strong momentum throughout the year.”

Customer base

• In Q1Our Mobile customer base grewby 5.5% year-over-year reaching 9.1 million subscribers with 475,000 net-additions. Postpaidremains a strong engine of growth with an increase of 9.6% year-over-year to 1.8 million customers mainly driven byEnterprise, where we introduced several innovative offerings such Business roaming proposals. The Prepaid base grew by4.5% to 7.3 million customers driven by new customized plans.
• In Q1 our Fixed customer base saw a strong growth of 13.8% year-over-year reaching701,000 subscribers, with 19,000 net-additions in the first quarter and 85,000 over the past 12 months driven by new offers such as the upgraded Home basic plan and Office wireless offers including managed services. We maintained a strong momentum in Home Wireless boosted by the virgin mobile offerings and we sustained our operational and commercial focus towards network expansion and penetration in areas with high growth potential.

Q1 2025 Financial Highlights

• Q1revenues grew by 7.4% year-over-yearreaching AED 3.8billionwith growth in both service and non-service revenuesprimarily driven by the strong macro environment in the UAE, our ability to gain market share, as well as our sustained focus on high ARPU products and mix improvement.
• Q1Mobile service revenuesincreased by 7.4% year-over-year to AED 1.7 billiondriven by the growth of our customer base, improved mix and enhanced ability to capture demand for higher ARPU products through higher offer personalisation and data driven Customer Value Management, as well as some non-recurring revenues.

• Q1Fixed service revenuesrose by 10.2% year-over-year reaching AED 1.1billion mainly driven by the higher fibre penetration and the continuing success of our Home Wireless product and Enterprise connectivity solutions.
• Q1“Other revenues”grew by 4.8% year-over-year to AED 1.1billiondriven by the expansion of our ICT business as we continue to seek new revenue streams beyond our core business. The growth was also driven by higher in-bound roaming revenuessupportedby highertourists’ inflow and higher interconnection revenues reflecting our higher mobile base. This was partly offset by lowerhandset sale mainly reflecting a phasing effect, with Q1’24 handset sales benefitting from a pull-forward in demand due to supply constraints in the prior quarter, resulting in a higher comparison base.

• Q1EBITDA grew by 15.0% to AED 1.8billion, with an EBITDA margin of47.4%. The strong revenues’ 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 our continuous focus on operational efficiency and strong control of indirect costs.
• Q1Net Profit witnessed a19.8% growth year-over-year to AED 722 million, representing a Net Profit margin of 18.8% reflecting the strong EBITDAperformanceand positive interest result.
• Q1Capex was at AED 377 million (Q1 2024: AED 359 million), a capex intensity of 9.8% (Q1 2024 capex intensity of 10.0%). Our core investments remain focused on5G densification, enhancing indoor coverage and expanding Fibre deployment, and we will further allocate capital to continue developing our ICT activities. We will also continueimproving our infrastructure and transforming our IT systems to further enhance the quality of our network and elevate customer experience.
• Q1Operating free cash flow (EBITDA – Capex) increased by 17.9% to AED 1.4billion, mainly driven by EBITDA growth.