Emirates Integrated Telecommunications Company PJSC (du), announced today its financial results for the third quarter of 2024 with a stellar topline growth of 9.1% and a robust EBITDA growth of 16.9%. Q3 EBITDA margin of 48.3% is the highest since inception. Q3 net profit of AED 719 million is the highest quarterly net profit in the last three years while net profit for the 9 months grew by a stellar 49.7%. This very strong financial performance is the result of a sustained commercial momentum, consistent strategy execution and efficient cost management. Significant milestones have been achieved in the connectivity business and beyond, underpinning du’s evolution from a telecom operator to a leading Telecom and Digital Services Provider.
Q3 2024 Highlights
Financial snapshot
Quarterly | 9 Months | |||||
AED million | Q3 2024 | Q3 2023 | change | 9m 2024 | 9m 2023 | change |
Revenues | 3,589 | 3,291 | 9.1% | 10,763 | 10,078 | 6.8% |
Service revenues | 2,646 | 2,464 | 7.4% | 7,803 | 7,351 | 6.1% |
Other revenues | 944 | 827 | 14.1% | 2,960 | 2,727 | 8.5% |
EBITDA | 1,734 | 1,483 | 16.9% | 4,891 | 4,370 | 11.9% |
EBITDA Margin (%) | 48.3% | 45.1% | 3.2 pts | 45.4% | 43.4% | 2.1pts |
Net profit | 719 | 504 | 42.7% | 1,903 | 1,271 | 49.7% |
Capex | 511 | 527 | -3.0% | 1,312 | 1,439 | -8.8% |
Capital intensity (%) | 14.2% | 16.0% | -1.8 pts | 12.2% | 14.3% | -2.1 pts |
Operating Free Cash Flow | 1,223 | 956 | 27.9% | 3,579 | 2,930 | 22.1% |
Commenting on the Q3 developments and performance, Fahad Al Hassawi, CEO said:
“In the third quarter, we continued to execute our strategy of strengthening our core connectivity business whilst selectively expanding beyond the core to position ourselves as a leading integrated digital services enabler. The recent overhaul of our operating brands, with the introduction of two new sub-brands, du Tech and du Infra, reflects our strategic shift to drive comprehensive digital transformation across our services, underscoring our commitment to innovation and creation of dynamic digital ecosystems. With our expanded portfolio and the deployment of 5G SA and AI technologies, we are setting the stage for transformative digital adoption by individuals, businesses, and governmental bodies alike, building a future that is both more interconnected and digitally savvy. Our recent partnership with AI Hosting Hub underscores our commitment to growing in the data centre and cloud sectors. As part of our transformation journey, we have recently joined the Orange Alliance highlighting our aim to leverage the expertise of global operators to adopt industry leading practices.
The successful execution of our strategy has led to another quarter of strong financial performance. Our quarterly revenues were up by over 9% as we saw a robust growth in all our segments. Our customer base is further expanding and the third quarter was marked by over 14% growth of the Fixed customer base. These results highlight the alignment of our products with customer needs and the high quality of our infrastructure. Our top line growth continues to be highly value creative, as we achieved a record high EBITDA margin of 48.3% and the highest quarterly net profit in the last three years. Our strong cash generation and healthy balance sheet provide us with the flexibility to invest in future growth opportunities and deliver strong returns to our shareholders. We remain confident in achieving our targets and have reaffirmed our 2024 guidance”.
Customer base
Financial highlights
Operating free cash flow
(EBITDA – Capex) increased by 27.9% to AED 1,223 million, reflecting EBITDA growth and Capex moderation. Our business remains highly cash generative, enhancing our cash position and solidifying our balance sheet.