Emirates Telecom Sees Robust Q1 Growth
Emirates Integrated Telecommunications Company PJSC reports significant revenue and profit growth in Q1 2025.
Summary
Emirates Integrated Telecommunications Company PJSC, known as du, reported a strong first quarter in 2025 with a 7.4% increase in revenues and a 19.8% rise in net profit, alongside a strategic partnership with Microsoft for a hyperscale data center.
In an impressive display of financial robustness, Emirates Integrated Telecommunications Company PJSC, commonly referred to as du, has announced its financial results for the first quarter of 2025. The company recorded a 7.4% year-over-year increase in total revenues, reaching AED 3.8 billion. This growth was fueled by a solid performance across both service and non-service segments.
One of the standout metrics from the report is the 15.0% rise in EBITDA, which reached AED 1.8 billion. This was accompanied by an exceptional EBITDA margin expansion to 47.4%, an increase of 3.1 percentage points from the previous year. The company's operational strength and efficient cost management strategies have translated into a net profit increase of 19.8%, totaling AED 722 million.
du's commercial momentum is further underscored by the expansion of its subscriber base, with mobile subscribers exceeding 9 million. This growth reflects the company's strategic initiatives to enhance customer engagement and expand its market presence.
In a significant strategic move, du has entered into a landmark partnership with Microsoft to build a state-of-the-art hyperscale data center in the UAE. This collaboration marks a key milestone in expanding du's ICT footprint and aligns with its vision to drive digital transformation in the region.
Additionally, du Pay, the company's financial service arm, celebrates its first year with notable success, achieving half a million app downloads and processing transactions worth half a billion dirhams. This venture highlights du's commitment to diversifying its service offerings and tapping into the growing digital financial services market.
Looking ahead, du's strong financial performance and strategic initiatives position it well for future growth. However, given the competitive landscape and evolving market dynamics, investors may adopt a cautious approach. Based on the current financial metrics and strategic developments, holding the stock may be advisable as the company continues to execute its growth strategies.
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Summary
Emirates Integrated Telecommunications Company PJSC (du) reported strong financial results for the first quarter of 2025, with a 7.4% increase in total revenues to AED 3.8 billion, driven by solid growth in both service and non-service segments. The company's EBITDA rose by 15.0% to AED 1.8 billion, resulting in an EBITDA margin increase to 47.4%. Net profit increased by 19.8% to AED 0.7 billion. The company achieved a significant milestone by partnering with Microsoft to develop a hyperscale data center in the UAE. Additionally, du Pay marked its first anniversary with half a million app downloads and transactions totaling half a billion dirhams. The mobile subscriber base exceeded 9 million, contributing to the company's continued commercial momentum.
