UAE telco Du’s profit up a fifth as subscriber base expands

Dubai-listed telecom operator Du’s top and bottom lines rose in the first quarter of 2025, driven by an increase in the subscriber base and the UAE’s economic growth.

Revenue grew more than 7 percent year on year to AED4 billion ($1 billion) during the quarter ended March 2025.

The mobile customer base increased by 6 percent annually to 9.1 million subscribers with 475,000 new additions. Fixed customer base jumped 14 percent year on year to 701,000 subscribers, adding 19,000 new customers.

Profit surged 20 percent year on year to AED722 million ($196 million), as net profit margin reached 19 percent.

Du’s shares were trading at AED8.69 at close of business on Monday, having risen 47 percent over the last 12 months. UAE sovereign wealth fund Emirates Investment Authority owns a 50 percent share in the company.

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Capital expenditure stood at AED377 million ($102 million) in the first quarter, compared to AED359 million ($97 million) in the same period last year. The spend was primarily on 5G densification, boosting indoor coverage and expanding fibre deployment.

CEO Fahad Al Hassawi said the company’s balance sheet will allow expansion into high-potential growth areas.

Last month, Du and US tech major Microsoft agreed to build an AED2 billion hyperscale data centre, which is in line with the objectives of the 2024 Dubai Universal Blueprint for Artificial Intelligence.