UAE telecom operator du posts 10.8% growth in 2022 net profit

UAE’s telecom operator Emirates Integrated Telecommunications Company, also known as du, reported a 10.8 per cent growth in 2022 full year net profit.

Net profit for the year rose to Dhs1.22bn, while the telco recorded a 9.2 per cent increase in revenue, equalling Dhs12.75bn, on “sustained demand for broadband services and 5G handsets as well as a gradual recovery of mobile services”, the company said on Tuesday.

We’ve announced our 2022 financial results. Revenues grew by 9.2% to AED 12.75B on strong demand for broadband & 5G and gradual mobile services recovery. Net profit grew by 10.8% to AED 1.22B. On this basis, the Board recommends increasing the full-year dividend to 24 fils/share. pic.twitter.com/DxDPgSL7bM

— dutweets (@dutweets) February 14, 2023

Full-year earnings before interest, tax, depreciation and tax (EBITDA) also grew by 12 per cent to reach Dhs5.14bn, owed to strong services revenues growth, expansion of gross margins and cost optimisation initiatives, the operator added. Capital expenditures for the full year totalled Dhs2.21bn.

“In 2022, we turned a net profit of Dhs1.22bn and generated an operating free cash flow of nearly Dhs3bn. Notwithstanding sustained investments, our business remains highly cash generative and our balance sheet solid with Dhs5.3bn in available liquidity,” said chairman Malek Sultan Al Malek.

“On the basis of our financial results, the board is recommending to increase the full-year dividend to 24 fils per share, out of which 11 fils per share were already paid in August 2022 as an interim dividend. This corresponds to a 14.3 per cent increase and a distribution of 99.1 per cent of net profit after appropriation for statutory reserves.”

du’s mobile customer base grew 8.9 per cent year-over-year, and ended 2022 with 7.9 million subscribers with 494,000 additions in Q4.

Its postpaid customer base grew 10.7 per cent to reach 1.5 million on “healthy net-additions across the consumer and enterprise segments”, while its prepaid customers increased to 6.4 million, driven in equal measures by “population growth and high tourism activity”, the telecom operator added.

The company’s fixed customer base increased by 37.3 per cent year-over-year, ending the year with 537,000 subscribers.

Fourth quarter results

Revenues in Q4 2022 grew by 8 per cent year-over-year to total Dhs3.315bn, while the operator’s EBITDA in the fourth quarter grew 5 per cent to Dhs1.305bn on higher service revenues.

Q4 2022 adjusted (for the one-off items in 2021) net profit increased 34.3 per cent to reach Dhs286m.

“In 2022, we accelerated the recovery that we initiated the previous year,” added CEO Fahad Al Hassawi.

“Our new mobile products such as unlimited mobile data plans helped us reverse the declining trend in our mobile business. Our new fixed home wireless services have been extremely well-received and has attracted a new segment of customers.”

“We made tangible progress on our 5G network roll-out, fiber deployment and IT transformation.”

Also read: UAE telecom du signs MoU with Huawei and Sinotrans at Gitex Global