Emirates Integrated Telecommunications Company (DU) Q3 2024 earnings summary

Executive summary

• Achieved strong operational and financial performance in Q3 2024, with quarterly revenues up 9.1% year-over-year to AED 3.6bn and net profit up 42.7% to AED 719m, marking the highest quarterly net profit in three years.

• Revenue for the nine-month period ended 30 September 2024 reached AED 10.76 billion, up from AED 10.08 billion year-over-year.

• Net profit for the period was AED 1.90 billion, a significant increase from AED 1.27 billion in the prior year.

• All business segments contributed to revenue growth, supported by a revamped B2B portfolio, strategic partnerships, and digital transformation initiatives.

• The financial statements were reviewed by PwC, with no material misstatements identified.

Financial highlights

• Revenues rose 9.1% year-over-year to AED 3,589 million in Q3 2024, with growth in both service and other revenues.

• EBITDA increased 16.9% year-over-year to AED 1,734 million, with margin improving to a record 48.3%.

• Net profit surged 42.7% year-over-year to AED 719 million in Q3 2024.

• Operating free cash flow grew 27.9% year-over-year to AED 1,223 million.

• Basic and diluted EPS for the nine months was AED 0.42, up from AED 0.28 year-over-year.

Outlook and guidance

• 2024 revenue growth guidance set at 5–7% year-over-year, with EBITDA margin expected above 43%.

• FY 2024 guidance reaffirmed, with confidence in achieving targets due to strong cash generation and a healthy balance sheet.

• The Group is subject to a new federal royalty and corporate income tax regime, with an estimated average annual effective tax rate of 43.7% for 2024.

• Management is assessing the impact of new IFRS standards effective in future years.

• Focus remains on profitable growth, digitalization, and IT transformation.