Emirates Integrated Telecommunications announces net profit of AED 464 million

DUBAI, UAE: Emirates Integrated Telecommunications Company (EITC) published its financial results for Q2 2019 ended June 30, 2019, reporting AED 3.19 billion revenues, AED 1.47 billion EBITDA and AED 464 million net profit after royalty for the second quarter of the year.

For H1 2019, Emirates Integrated Telecommunications Company (EITC) reported revenues of AED 6.33 billion, EBITDA of AED 2.89 billion representing growth of 1.7% when compared “like-for-like” for the same period 2018 and a net profit after royalty of AED 913 million representing a growth of 11.3% when compared “like-for-like”.

Commenting on the results, Mohamed Al Hussaini, Chairman of EITC, said: “Our company achieved in Q2 2019 a good performance as we recorded a 2.5% (5.5% “like-for-like”) growth in net profit after royalty when compared to the same period last year reaching AED 464 million. I am pleased to announce that our Board of Directors has approved an interim dividend of AED 589 million representing 13 fils per share.

“EITC’s extensive investment in the latest technologies and infrastructure enhances our competitiveness and enables us to continue upgrading our services to meet our customer requirements. In doing so, we actively support the UAE’s ambitious digital transformation agenda as set out by the forward-looking leadership of the nation.”

Commenting on the results, Osman Sultan, EITC’s Chief Executive Officer, said: “It is clear that our efficiency plan and investmentsin new technologies to drive forward our digital strategy and prepare our company for the needs of tomorrow allowed us to contain the erosion of EBITDA. The result of this has been a solid EBITDA performance of AED 1.47 billion, which contributed in Q2 2019 to a 2.5% (5.5% “like-for-like”) improvement in Net Profit after Royalty to AED 464 million, compared to the same period last year.

“Our Revenues were impacted by industry wide challenges particularly, the continued pressure on voice revenues. Q2 2019 revenues were at AED 3.19 billion, compared to AED 3.35 billion in Q2 2018, driven by a 6.8% decrease in mobile revenue to AED 1.69 billion, which was partially offset by the continued strong growth in our fixed revenue of 5.8% to AED 617 million in Q2 2019, compared to the same period last year.

“Our mobile subscriber mix for Q2 2019 improved, with higher value customers driving up mobile RPU, by 3.8% compared to the same period last year. However, our total mobile subscriber number declined due to the continued clean-up of our prepaid base in line with the “My Number My Identity” Campaign. Fixed line subscribers increased by 2.4% during the second quarter of the year.

“We continue investing in our business to meet the needs of tomorrow. Our strong capital position enabled us to increase our capital expenditure to AED 467 million during H1 2019, investing in our network and capabilities, paving the way for the commercial launch of 5G technology and preparing our company for a new era in connectivity. We remain focused on making the right investments in our business to deliver our digital strategy and prepare our company for the future of the telecom business”.

Edited by Kiran Khan

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