Emirates Integrated Telecommunications Company (DU) Q2 2024 earnings summary

Executive summary

• Achieved record results in H1 2024 with strong operational and financial performance, robust revenue growth in core and non-core businesses, and innovation in Fintech and AI.

• Net profit for H1 2024 reached AED 1,183.8 million, up from AED 766.5 million year-over-year.

• Strategic ICT partnerships, including with Oracle Alloy, and innovative offerings contributed to revenue diversification and enhanced market positioning.

• Board approved an interim cash dividend of AED 0.20 per share, up 53.8% year-over-year.

• du brand recognized as the 3rd strongest in the UAE and 7th in the Middle East.

Financial highlights

• Q2 2024 revenues rose 7.3% year-over-year to AED 3,592 million, with H1 2024 revenue at AED 7,173.6 million.

• EBITDA increased 3.2% year-over-year to AED 1,570 million in Q2 2024; EBITDA margin at 43.7%.

• Net profit surged 46.3% year-over-year to AED 581 million in Q2 2024.

• Operating free cash flow grew 10.9% year-over-year to AED 1,127 million in Q2 2024.

• Basic and diluted earnings per share rose to AED 0.26 from AED 0.17 year-over-year.

Outlook and guidance

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

• Upward revised full-year financial guidance based on strong H1 performance.

• Focus remains on profitable growth in both core and non-core areas, digitalization, IT transformation, and 5G expansion.

• 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.