EITC reports over 19% increase in profit for Q1 2023

EITC reports over 19% increase in profit for Q1 2023

Emirates Integrated Telecommunications Company PJSC (EITC) has announced its financial results for the first quarter ending on 31 March 2023. The company recorded a significant 10% revenue growth to AED 3.44 billion, driven by sustained demand for fixed and mobile services. EBITDA increased by 7.7% to AED 1.37 billion, and net profit surged by 19.1% to AED 370 million. The company maintained stable operating free cash flow (EBITDA – Capex) at AED 958 million.

EITC's commercial initiatives led to a 9.4% increase in mobile customers, with 8.2 million subscribers at the end of the quarter. The company delivered a seventh consecutive quarter of postpaid net-additions (48,000) due to the success of Unlimited non-stop data plans and sustained demand from the enterprise sector, ending the quarter with 1.5 million postpaid customers. The prepaid customer base increased to 6.7 million, driven by the continued attractiveness of Flexi plans and brisk tourism activity. The consumer broadband offering also remained highly attractive, attracting nearly 18,000 new customers and ending the quarter with 554,000 broadband customers, representing a 26.4% increase year-over-year.

In terms of financial highlights, revenues grew by 10% to AED 3,441 million, with mobile service revenues leading the recovery, driven by the postpaid segment's excellent performance. Fixed services revenues increased by 15.0% to AED 936 million, due to sustained demand from consumer and enterprise customers. Service revenues increased by 9.5% to AED 2,427 million, and other revenues grew by 11.2% to AED 1,014 million due to a recovery in handset sales and sustained growth of the ICT unit. EBITDA increased by 7.7% to AED 1,366 million, and net profit jumped by 19.1% to AED 370 million, primarily due to higher EBITDA and an increase in finance income, partially offset by an increase in royalty expense. Capex spend amounted to AED 408 million, focused on expanding the fibre network and ongoing IT transformation.

Fahad Al Hassawi, CEO, expressed his pleasure with the quarter's results, stating that the company's commercial momentum remains intact, and its portfolio of products and services continues to attract customers across all units. He added that the company aims to improve profitability and generate higher shareholder value by monitoring the cost base for efficiency and focusing spend on growth opportunities. As EITC transitions to a digital-first telecom operator, infrastructure investments remain a key element to provide the best-in-class customer experience.

News Source: Emirates News Agency

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