Emirates Integrated Telecom Posts Record Profits
Emirates Integrated Telecommunications Company PJSC (du) reports a strong Q3 with record profits, signaling robust growth and strategic advancements.
Summary
Emirates Integrated Telecommunications Company PJSC (du) has announced impressive financial results for Q3 2024, with significant growth in revenues and profits, driven by strategic initiatives and efficient cost management.
Emirates Integrated Telecommunications Company PJSC, widely recognized as du, has once again demonstrated its prowess in the telecommunications sector with an impressive financial performance for the third quarter of 2024. The company reported a 9.1% year-over-year increase in revenues, reaching AED 3.6 billion, and an outstanding 16.9% growth in EBITDA, which now stands at AED 1.7 billion. This has resulted in a record EBITDA margin of 48.3%, the highest since the company's inception.
The most striking aspect of du's Q3 report is the surge in net profit, which rose by 42.7% to AED 719 million, marking the highest quarterly net profit in the past three years. Over the first nine months of 2024, net profit soared by 49.7%, a testament to the company's effective strategy execution and cost management.
Du's strategic focus on expanding its digital services and enhancing its B2B portfolio has played a crucial role in this growth. The launch of two new sub-brands and a global partnership with Orange to support innovation and digital transformation are significant milestones that underscore du's evolution from a traditional telecom operator to a leading Telecom and Digital Services Provider.
Capital expenditure (Capex) has been normalized with a capital intensity of 12.2% in the first nine months, reflecting efficient allocation of resources. Operating free cash flow also witnessed a substantial increase, growing by 27.9% to AED 1.2 billion in Q3, further strengthening the company's financial position.
Looking forward, du's reaffirmation of its FY 2024 guidance suggests continued confidence in its growth trajectory. The company's strategic initiatives, combined with robust financial health, position it well to capitalize on emerging opportunities in the telecom and digital services sectors.
For investors, du's strong financial performance and strategic direction indicate a promising future. The company's ability to consistently deliver growth and profitability, coupled with its strategic partnerships, make it a compelling investment opportunity. Therefore, considering the current performance and future prospects, the suggestion would be to buy the instrument.
Source
Summary
Emirates Integrated Telecommunications Company PJSC (du) reported strong financial results for the third quarter of 2024. The company achieved a 9.1% increase in quarterly revenues, reaching AED 3.6 billion, and a 16.9% growth in EBITDA to AED 1.7 billion, with a record EBITDA margin of 48.3%. Net profit for the quarter rose by 42.7% to AED 719 million, marking the highest quarterly net profit in the last three years. For the first nine months of 2024, net profit surged by 49.7% to AED 1.9 billion. This performance is attributed to sustained commercial momentum, strategic execution, and efficient cost management. The company has made significant progress in its connectivity business and is evolving into a leading Telecom and Digital Services Provider. Key developments include a strategic overhaul of its B2B portfolio with new sub-brands and a global partnership with Orange to support innovation and digital transformation. Capital expenditure normalized with a capital intensity of 12.2% in the first nine months, and the company reaffirmed its guidance for fiscal year 2024.
