Higher margins, lower costs drive du Q3 2025 net profit to Dh732 million

Dubai: Emirates Integrated Telecommunications Company PJSC (du) reported a net profit of Dh732 million for the third quarter of 2025, marking a 1.8% year-on-year increase and a 25.8% gain on a normalised basis once one-off items were excluded.

Total revenues rose 7.9% to Dh3.9 billion, driven by solid performance across mobile, fixed, and ICT businesses, according to the company’s financial statement released on Wednesday. EBITDA grew 6.7% to Dh1.9 billion, translating to a margin of 47.8%, compared with 44.1% a year earlier.

du attributed the improvement to higher gross margins from a better revenue mix, tighter cost control, and efficiency gains. Operating free cash flow rose 11% to Dh1.4 billion as lower capital spending supported stronger cash generation.

The company’s mobile customer base expanded 10.3% year-on-year to 9.2 million, adding 854,000 new users over the past 12 months. Postpaid subscribers increased 8.6% to 1.9 million, supported by enterprise demand and the launch of Apple’s iPhone 17. Prepaid customers rose 10.7% to 7.2 million, helped by seasonal promotions and wider retail coverage.

The fixed-line base climbed 9.7% to 718,000 subscribers, with steady growth in home-wireless and fibre broadband services reflecting continued demand for high-speed connectivity.

du achieved an EBITDA margin of 47.8%, up 3.7 percentage points on a normalised basis, supported by operational discipline, reduced outsourcing costs, and efficient marketing spending.

Capital expenditure totalled Dh492 million, down from Dh511 million in Q3 2024, representing a capex intensity of 12.7%. The company said investments this year are “backloaded,” with more projects scheduled for completion in Q4 as du continues to modernise its mobile and fixed networks and expand its ICT offerings.

In September, du completed a secondary public offering involving 7.55% of its share capital, previously owned by Mubadala Investment Company. The transaction increased du’s free float to 27.7%, enhancing liquidity and potentially paving the way for inclusion in major equity indices.

The operator also continued scaling its ICT and digital-services portfolio, highlighted by the launch of the AI Park ecosystem and the AI supercluster, part of its push into sovereign AI and data-driven infrastructure.

Chief Executive Fahad Al Hassawi said du’s consistent quarterly performance reflects the company’s “disciplined execution and strong fundamentals.” He reaffirmed the 2025 guidance of 6–8% annual revenue growth and an EBITDA margin between 45% and 47%.

“Our results underscore continued progress on our strategic priorities — reinforcing growth in our core connectivity business while rapidly scaling our high-potential digital segments,” Al Hassawi said.

Analysts say du’s performance mirrors a wider trend across UAE telecoms, where demand for mobile data, broadband, and enterprise solutions remains robust amid the country’s accelerating digital-economy expansion.