Du reports Dh913 million H1 net profit

Dubai: Emirates Integrated Telecommunications Company’s (du) reported revenues of Dh6.33 billion and a net profit after royalty of Dh913 million for the first half of 2019.

For the second quarter 2019, the company’s net profit after royalty increased by 2.5 per cent to Dh464 million.

The company’s board of directors approved the distribution of Dh589 million of interim dividends to its shareholders for the first half of 2019 resulting in 13 fils per share.

“Our company achieved in Q2 2019 a good performance as we recorded a 2.5 per cent growth in net profit after royalty when compared to the same period last year reaching Dh464 million. I am pleased to announce that our Board of Directors has approved an interim dividend of Dh589 million representing 13 fils per share,” said Mohamed Al Hussaini, Chairman of EITC.

Du reported Dh3.19 billion revenues, Dh1.47 billion EBITDA [earnings before interest, tax, depreciation and amortisation] and Dh464 million net profit after royalty for the second quarter of the year. For the first six months of the year, company reported an EBITDA of Dh2.89 billion at the close of the first half of 2019.

“Our Revenues were impacted by industry wide challenges particularly, the continued pressure on voice revenues. Q2 2019 revenues were at Dh3.19 billion, compared to Dh3.35 billion in Q2 2018, driven by a 6.8 per cent decrease in mobile revenue to Dh1.69 billion, which was partially offset by the continued strong growth in our fixed revenue of 5.8 per cent to Dh617 million in Q2 2019, compared to the same period last year,” said Osman Sultan, EITC’s Chief Executive Officer.

Company said in a statement that it continues its strategic investments in the business, as it launches 5G and rolls out more sites nationwide. Q2 2019 Capex increased by 93 per cent compared to the same period last year, to Dh286 million. The first half 2019 total capex spend was Dh467 million.

“We continue investing in our business to meet the needs of tomorrow. Our strong capital position enabled us to increase our capital expenditure to Dh467 million during H1 2019, investing in our network and capabilities, paving the way for the commercial launch of 5G technology and preparing our company for a new era in connectivity,” said Sultan.