Emirates Integrated Telecommunications Company (DU) Q2 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q2 2024, with robust revenue growth in both core and non-core businesses and increased profitability driven by value creation initiatives.

• Revenue for the six-month period ended 30 June 2024 was AED 7,173.6 million, up from AED 6,787.3 million year-over-year.

• Net profit for the period reached AED 1,183.8 million, a significant increase from AED 766.5 million in the prior year period.

• Strategic ICT partnerships and innovative offerings contributed to revenue diversification and enhanced market positioning.

• Total comprehensive income attributable to shareholders was AED 1,183.8 million, compared to AED 766.5 million year-over-year.

Financial highlights

• Revenues rose 7.3% year-over-year to AED 3,592 million in Q2 2024, driven by growth in mobile and other revenues.

• EBITDA increased 3.2% year-over-year to AED 1,570 million; normalized EBITDA growth was in the high single digits, with over 1 point margin improvement year-over-year.

• Net profit surged 46.3% year-over-year to AED 581 million in Q2 2024, reflecting higher EBITDA and a new royalty regime.

• Operating expenses for the six months were AED 4,944.8 million, up slightly from AED 4,874.1 million year-over-year.

• Operating free cash flow grew 10.9% year-over-year to AED 1,127 million.

Outlook and guidance

• 2024 revenue growth guidance revised up to 5-7% year-over-year, with EBITDA margin expected above 43% (2023: 42.5%).

• Focus remains on profitable growth in both core and non-core areas, digitalization, and IT transformation.

• Management notes that interim results may not be indicative of full-year performance.

• New federal royalty and corporate tax regime effective from 2024, with a minimum annual payment of AED 1.8 billion.