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Du parent posts Q2 profit surge as customers hit 8m

EITC profit Du Du
Du, which has a Dubai Hills Mall concept store, and Virgin Mobile networks' 5G broadband service is proving very popular
  • Du and Virgin Mobile parent EITC earned $108m in Q2 profit
  • The UAE firm invested AED506m in 5G, fibre, and IT in Q2
  • Broadband customers grew 18% to 559,000

Emirates Integrated Telecommunications Company (EITC), which operates the Du and Virgin Mobile brands in the UAE, reported a 31 percent increase in net profit on Wednesday.

The growth was on the back of strong demand for mobile and fixed broadband services.

Profits totalled AED397 million ($108 million) in the second quarter. Revenue rose by nearly seven percent to AED3.4 billion, the company said in a filing to Dubai Financial Market.

Its mobile customer base grew 8 percent annually to 8 million subscribers. Its prepaid customer base grew 7.4 percent to register 6.5 million customers, despite declining over the quarter reflecting the typical seasonality impact. 

EITC’s fixed offering continued to expand with 559,000 broadband customers, representing 18.3 percent growth year-on-year. 

Capital expenditure reached AED506 million with Q2 investment directed towards 5G deployment, expanding the fibre network and ongoing IT transformation. 

Fixed wireless 5G broadband is proving a very popular, the company said. Du is targeting new revenue streams with gigabit speeds and low latency delivery for innovative broadband applications.  

CEO Fahad Al Hassawi said: “We have consistently expanded our broadband customer base by acquiring over 5,000 home wireless and fibre clients.

“We remain resolute in our disciplined cost management approach and our dedication to investing in high growth opportunities.”

The board of directors has approved an interim half-year cash dividend distribution of AED0.13 per share, he said.

EITC is the UAE’s second licensed telecommunications operator, competing with e&, formerly known as Etisalat.