Du reports Dh1.44 billion net income

Emirates Integrated Telecommunications Company, popularly known as du, on Monday reported net income of Dh1.44 billion for 2020 as compared to Dh1.73 billion in the corresponding period.

The UAE’s second telecom operator reported net income of Dh48 million in the fourth quarter of 2020 due to a one-off goodwill write-off of Dh137 million pertaining to the company’s broadcasting business, impacted by the Covid-19 pandemic. Excluding this one-off, the net income for the fourth quarter was Dh185 million.

The strong performance reflects the resilience of the company’s model in a difficult operating environment due to the pandemic. EITC’s capital expenditure increased by 24.1 per cent year-over-year to Dh1.87 billion, representing a capital intensity of 16.9 per cent, its highest level over the last five years.

The company’s board recommended dividend distribution of 28 fils per share, out of which 13 fils per share were paid in August 2020 as an interim dividend.

The Dubai-based company’s fourth-quarter revenues increased by 1.9 per cent, compared to third quarter of 2020, to Dh2.74 billion, representing two sequential quarters of growth in 2020 as economic activity continues to recover. Revenues for the full year 2020 were at Dh11.08 billion.

The company’s fourth quarter mobile revenues were almost stable at Dh1.32 billion while fixed revenues were at Dh645 million. Its full-year 2020 fixed revenues increased to Dh2.57 billion, up by three per cent when compared to the previous year.

The company’s fourth quarter’s EBITDA was Dh1.03 billion, showing a contained erosion as the company continued to implement cost optimisation initiatives to drive efficiencies across the business and streamline its operations. EBITDA for the year was Dh4.51 billion, representing a solid EBITDA margin of 40.7 per cent.

Mohamed Al Hussaini, chairman of EITC, said the company has been able to navigate in a turbulent environment and ensure the efficient provision of telecommunication services, vital to the economy and the community especially in these difficult times.

“We remain committed to further developing and modernising our infrastructure by investing in future technologies. In 2020, we increased our capital expenditure by 24.1 per cent to reach Dh1.87 billion, representing the company’s highest level of capital intensity over the last five years, which was primarily used to enhance our network and continue our 5G roll out.”

Fahad Al Hassawi, acting CEO of EITC, said: “Our business saw a positive momentum towards a gradual return to normality in the second half of 2020, as economic activity and trade and tourism resumed. We reported two consecutive quarters of positive revenue growth in the third and fourth quarter of 2020, respectively.”

— waheedabbas@khaleejtimes.com