Emirates Telecom Profits Soar by 49.1% in 2024

Emirates Integrated Telecommunications Company PJSC, also known as du, has announced a remarkable financial performance for the year 2024, setting new records in profitability and shareholder returns. The company reported a net profit of AED 2.5 billion, marking a 49.1% increase from the previous year. This impressive growth is attributed to strategic initiatives that have driven both top-line expansion and bottom-line improvement.

Revenues for the year rose by 7.3% to AED 14.6 billion, reflecting a strong market position and effective revenue diversification. The company's EBITDA increased by 11.6% to AED 6.5 billion, with the EBITDA margin expanding by 1.7 percentage points to 44.2%. This exceptional profitability underscores du's ability to maintain a robust financial performance amid a competitive telecommunications landscape.

In a move to reward its shareholders, du has recommended a final dividend of 34 fils per share for 2024, bringing the annual dividend to 54 fils per share, the highest in the company's history. This 59% year-on-year increase in dividend payout demonstrates du's commitment to delivering value to its investors.

Capital expenditure has been normalized with a capital intensity of 14.0%, allowing du to maintain a strong balance sheet while continuing to invest in strategic growth areas. The company's operating cash flow surged by 23.0% to AED 4.4 billion, highlighting its highly cash-generative business model.

Strategic partnerships with global telecommunications giants Orange and Telefónica have further bolstered du's innovation and growth potential, positioning the company well for future opportunities in the digital and connectivity sectors.

Despite these impressive results, the future outlook for du remains neutral, as the telecommunications industry continues to face challenges such as regulatory changes and technological disruptions. Investors should carefully consider these factors when making investment decisions.

In conclusion, while du's robust financial performance and strategic initiatives are commendable, potential investors are advised to hold their positions for now, as the company navigates the evolving telecommunications landscape.