Emirates Integrated Telecommunications Company PJSC, commonly known as 'du', has unveiled its financial performance for the second quarter of 2026, showcasing a robust growth trajectory. Despite the challenging operating environment, the company reported a 4.6% increase in quarterly revenues, reaching AED 4,083 million, up from AED 3,902 million in the same period last year.

The company's EBITDA saw a significant rise of 9.2%, reaching AED 1,994 million, with an EBITDA margin expansion of 2 percentage points to 48.8%. This growth underscores the company's disciplined cost management and its strategic focus on value creation. Moreover, net profits rose by 9.8% to AED 798 million, reflecting the resilience of du's operating model.

One of the key highlights from the report is the Board of Directors' approval of an interim cash dividend of AED 0.26 per share, marking an 8.3% increase year-on-year. This decision underscores the company's commitment to delivering shareholder value even in the face of regional conflicts that have moderated subscriber growth.

While subscriber growth has slowed, with mobile and fixed bases increasing by 1.6% and 5.5% respectively, du remains focused on innovation and expansion. The company is advancing its 'beyond the core' strategy by launching du Ventures, a venture capital fund aimed at early and growth-stage companies developing emerging technologies.

Looking ahead, du's capital deployment remains on track, particularly with its data center projects. The company is gearing up for the launch of services under its agreement with a global hyperscaler, which is expected to drive future growth.

Given the company's strong financial performance and strategic initiatives, the recommendation is to hold the stock. While the current growth trajectory is promising, the regional market dynamics and potential global economic uncertainties warrant a cautious approach.