Dubai-based Emirates Integrated Telecommunications Company PJSC (du) has announced its financial results for the first quarter of 2025, showcasing robust growth in both revenues and profitability. Total revenues increased by 7.4 percent year-over-year, driven by strong performance across both service and non-service segments. EBITDA surged by 15.0 percent, supported by an improved revenue mix and effective cost management, resulting in an exceptional EBITDA margin of 47.4 percent.
Net profit increase reflects financial discipline
This operational strength translated into a net profit increase of 19.8 percent, highlighting the company’s continued momentum and financial discipline, as stated in the press release issued by the company today.
Fahad Al Hassawi, CEO, commented that the company started the year with a very strong first quarter, delivering growth across all key financial metrics and making meaningful progress on its strategy to diversify revenue streams. This was exemplified by the strategic partnership with Microsoft to develop a hyperscale data centre. He noted that the resilient UAE environment, along with the quality of their offerings and ability to adapt to evolving customer needs, contributed to the solid growth in their subscriber base, with the mobile base now exceeding 9 million and revenues witnessing a remarkable 7.4 percent growth.
Strong margin expansion and financial outlook
Al Hassawi added that the company achieved strong margin expansion, with the EBITDA margin rising to 47.4 percent while net profit grew by 19.8 percent. This reflects disciplined execution of their strategy and effective cost management. Al Hassawi emphasized that the balance sheet remains robust, supported by strong cash generation and the normalization of capital expenditures in their connectivity business, enabling strategic expansion into high-potential growth areas. The guidance was reiterated, showcasing confidence in maintaining this strong momentum throughout the year.
According to the company’s statement, Q1 revenues grew by 7.4 percent year-over-year, reaching AED3.8 billion. This growth in both service and non-service revenues was primarily driven by the strong macro environment in the UAE, the ability to gain market share, and a sustained focus on high ARPU products and mix improvement.
Mobile and fixed service revenue increases
Q1 mobile service revenues increased by 7.4 percent year-over-year to AED1.7 billion, driven by customer base growth, improved mix, and enhanced ability to capture demand for higher ARPU products through personalized offerings and data-driven customer value management.
Moreover, Q1 fixed service revenues rose by 10.2 percent year-over-year, reaching AED1.1 billion, mainly due to higher fibre penetration and the continuing success of the Home Wireless product and Enterprise connectivity solutions.
Q1 “other revenues” grew by 4.8 percent year-over-year to AED1.1 billion, driven by the expansion of the ICT business as the company continues to seek new revenue streams beyond its core operations. This growth was also supported by higher inbound roaming revenues due to increased tourist inflow and higher interconnection revenues from the expanded mobile base. However, this was partly offset by lower handset sales, primarily reflecting a phasing effect.
Strong EBITDA and net profit performance
Q1 EBITDA grew by 15.0 percent to AED1.8 billion, achieving an EBITDA margin of 47.4 percent. The strong revenue growth, improved mix, increased ARPU, and lower authentication costs contributed to this higher gross margin, alongside improved collections performance and a continuous focus on operational efficiency.
Q1 net profit witnessed a 19.8 percent growth year-over-year, reaching AED722 million, representing a net profit margin of 18.8 percent, reflecting strong EBITDA performance and positive interest results.
Q1 capex stood at AED377 million (Q1 2024: AED359 million), with a capex intensity of 9.8 percent (compared to 10.0 percent in Q1 2024). Core investments remain focused on 5G densification, enhancing indoor coverage, expanding fibre deployment, and further developing ICT activities. The company aims to improve infrastructure and transform IT systems to enhance network quality and elevate customer experience.
Q1 operating free cash flow (EBITDA – capex) increased by 17.9 percent to AED1.4 billion, primarily driven by EBITDA growth.
