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Emirates Integrated Telecommunications Company (EITC), the UAE’s second licensed telecommunications operator, posted a 19.1 percent rise in first-quarter net profit to AED370 million (US$101 million), mainly due to higher EBITDA and higher financial income.
Sustained demand for fixed and mobile services resulted in a strong revenue growth of 10% to AED 3.44 billion and EBITDA increased by 7.7% to AED 1.37 billion. Free cash flow from operations (EBITDA – capital expenditures) was stable at AED 958 million.
EITC’s focused business initiatives drove a 9.4 percent increase in mobile customers. The company ended the quarter with 8.2 million subscribers, posting healthy net additions in both postpaid and prepaid segments. EITC posted its seventh consecutive quarter of postpaid net additions (48,000) and ended the quarter with 1.5 million postpaid customers, driven by the success of its Unlimited uninterrupted data plan and continued demand from the enterprise sector.
customer base
Its prepaid customer base grew to 6.7 million due to the continued traction of the Flexi program and buoyant travel activity.
The company’s consumer broadband offerings remain extremely attractive. It attracted nearly 18,000 new customers (1Q22: 48,000) and ended the quarter with 554,000 broadband customers. This represents a year-over-year increase of 26.4%. Likewise, its commercial initiatives across various product categories and the disciplined execution of our broadband strategy supported another quarter’s solid performance.
financial summary
Revenue rose 10 percent to AED3.44 billion. Mobile services revenue continued to recover: revenue rose 6.3% to AED 1.49 billion, driven by strong postpaid performance. Fixed services revenue rose 15% to AED 936 million due to continued demand from both consumer and business customers.
Overall, services revenue rose 9.5% to AED 2.43 billion. Other revenue rose by 11.2% to AED 1.01 billion, driven by a recovery in handset sales and continued growth in the ICT sector. Handset revenue grew by 30.4% to AED 282 million due to improved supply chain and increased availability of smartphones.
EBITDA increased by 7.7% year-on-year to AED 1.37 billion. Higher service revenue led to higher gross profit. This improvement was normalized by marginal increases in network fees, higher spectrum costs (network expansion, more 5G usage) and provision for impairment of trade receivables (1Q22 provision benefited from some positive One-time provision) partly offset.
Capital expenditure was AED 408 million (11.8% capital intensity). EITC’s spending during the quarter focused on the expansion of its fiber network and ongoing IT transformation. Free cash flow from operations (EBITDA – capital expenditures) was stable at AED 958 million.
business momentum
Fahad Al Hassawi, Chief Executive Officer of EITC, said: “Our commercial momentum remains intact and our product and service portfolio continues to attract customers across all segments. During the quarter, we Added 48,000 mobile postpaid customers.We continued to grow our broadband customer base by adding 18,000 home wireless and fiber customers.
“We delivered excellent results in the first quarter, delivering double-digit revenue growth. Services revenue increased 9.4%, driven by our consistent and disciplined execution of our commercial strategy.
“As we continue to seek revenue growth and improve our market position, we are determined to improve profitability and create higher shareholder value. We are monitoring our cost base to improve efficiency and focus spending on growth opportunities. As we Transforming into a digital-first telecom operator, our infrastructure investment remains a key element in delivering a best-in-class customer experience.” — trade arab news agency
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