du leans into data, digital expansion as Q1 profit surges nearly 20%

Dubai: Telecom operator du started 2025 on a strong footing, posting a 19.8% rise in net profit and signalling a strategic shift beyond core telecom services into digital infrastructure and enterprise technology.

The company is betting on expanding ICT services—including a major new hyperscale data centre with Microsoft—to power its next phase of growth.

Total revenue for the quarter rose 7.4% year-on-year to Dh3.8 billion, while EBITDA jumped 15% to Dh1.8 billion. This pushed the EBITDA margin to a record 47.4%, reflecting gains from operational efficiencies and a more profitable product mix. Net profit reached Dh722 million, up from AED 603 million in Q1 last year.

du's mobile subscriber base rose 5.5% year-on-year to 9.1 million users, with strong growth in both prepaid and postpaid segments. On the fixed-line side, subscribers climbed 13.8% to 701,000, driven by enterprise connectivity solutions and the popularity of home wireless offerings.

“We started the year with strong momentum across all financial metrics. Our focus on diversifying revenue streams is reflected in our strategic partnership with Microsoft to build a hyperscale data centre," said CEO Fahad Al Hassawi, when commenting on the performance.

"This move, alongside solid growth in mobile and fixed services, positions us well to scale in new digital areas while maintaining financial discipline.”

Revenue from mobile services hit Dh1.7 billion, up 7.4%, as du continued to push personalised, high-ARPU offerings and saw gains from a growing customer base. Fixed service revenues climbed 10.2% to Dh1.1 billion, supported by increased fibre penetration and enterprise demand. Meanwhile, non-service revenue, including ICT and inbound roaming, rose 4.8% to Dh1.1 billion, although handset sales dipped slightly due to a high comparison base in Q1 2024.

The company also reported du Pay crossed a milestone with 500,000 app downloads and Dh500 million in transactions during its first year.

Capex stood at Dh377 million, with continued investments in 5G, fibre rollout, and IT upgrades. Operating free cash flow rose nearly 18% to Dh1.4 billion.

du said it remains on track to meet its full-year guidance, underpinned by a resilient UAE market and growing demand for digital infrastructure and enterprise solutions.