UAE telco du proposes interim dividend as H1-2023 net profit rings up Dh767.8m

Stock-du-telco — du's made gains on revenues and profits helped by a growing subscriber base and their interest in higher margin services from the telco. Image Credit: Supplied

Dubai: New residents streaming into the country and continued demand from existing subscribers rang up revenues of Dh6.78 billion for the telecom operator du in H1-23, up from Dh6.26 billion a year ago. That then brought on a profit of Dh767.68 million for the Dubai-headquartered company, a sharp increase on the Dh613.9 million a year ago.

du, in its statement, said that an interim cash dividend of 13 fils a share - amounting to Dh589,278,000 - has been proposed.

Dubai telco du rides on mobile subscriber growth to hit Dh933.33m as 9-month 2022 net profit

du had paid dividends of Dh589.27 million on April 6, 2023 as its 2022 payout.

Dividend decision

"We remain committed to continuously improving our operational efficiencies and advancing our transformation projects, both of which are integral to our ongoing success," said Malek Al Malek, Chairman.

Stock - du chairman Malek Sultan Rashed Al Malek — "Considering these factors and our solid performance, it is with pleasure that I announce the Board of Directors’ approval of an interim half-year cash dividend distribution of Dh0.13 per share,” said Al Malek.

As has been the case over recent quarters, mobile service revenues 'continued strong growth', helping du with a 7.6 per cent gain to Dh1,513.

Fixed services revenues too put in some growth to 10.9 per cent to Dh948 million following 'sustained demand from consumer and enterprise customers'.

Overall service-related revenues are higher by 8.9 per cent to Dh2.46 billion, while other revenues grew 1.1 per cent to Dh885 million due to 'healthy growth in roaming services as well as ICT services fueled by demand for security, data centre and cloud services'.

Calling in subscribers

"The strong demand for our Unlimited Data Power Plans, has allowed us to add 13,000 mobile post-paid customers during this period," said Fahad Al Hassawi, CEO. "We have consistently expanded our broadband customer base by acquiring over 5,000 home wireless and fibre clients, demonstrating our ability to excel in a rapidly evolving business environment.

Stock - Fahad Al Hassawi, du CEO — "We remain resolute in our disciplined cost management approach and our dedication to investing in high- growth opportunities," said Al Hassawi.

Capex

The capital expenditure during the second quarter came in at over Dh500 million. Even then, totalling Dh506 million, this is 9.3 per cent lower than the Dh558 million a year ago, It could suggest that du's heavy investments in network expansion and services may be reaching a mature phase.

"Our spend during the quarter was directed towards 5G deployment, expanding our fibre network and our ongoing IT transformation," the company said. "Traffic on our 5G network continues to grow rapidly reflecting the higher adoption and improved customer experience."

And as more residents take up homes and sign up for telecom services, it adds up to more prospects in the latter half of the year.

“Amid the burgeoning UAE economy and robust non-oil sector performance, we have persevered in sustaining our momentum, yielding an exceptional array of results," said Al Malek. "I take great pride in our proactive and dynamic commercial strategy, coupled with our unwavering dedication to excellence that has catalyzed EITC to ascend to new heights and spurred strong performance across all key financial indicators."