Emirates Integrated Telecommunications Company PJSC Reports First Quarter 2022 Results

Emirates Integrated Telecommunications Company PJSC (“EITC”) announced its financial results for the quarter ended 31 March 2022. Revenue increased by 8.5% to reach AED 3.1 billion thanks to sustained demand for high quality services. debit and mobile. EBITDA increased by 13.3% to reach AED 1.3 billion thanks to higher services revenue. Net profit jumped 21% to AED311 million. Operating Free Cash Flow (EBITDA – Capex) increased by 75% to reach AED 964 million thanks to higher EBITDA and capital expenditures which are starting to normalize.

  • Our targeted business initiatives led to a 10.4% growth in the number of mobile customers. We ended the quarter with 7.5 million subscribers on healthy net additions in the postpaid and prepaid segments. We achieved a third consecutive quarter of net additions in the postpaid segment which reached 1.4 million customers. Our prepaid customer base grew to 6.1 million thanks to targeted offers, buoyant tourism activity and a continued improvement in the economic environment.
  • Our consumer broadband offer remains extremely attractive. We attracted 48,000 new customers (Q1’21: 13,000) and ended the quarter with 439,000 broadband customers. This represents a 76.7% year-over-year increase. Once again, our commercial initiatives in various product categories and the disciplined execution of our broadband strategy helped generate another quarter of strong performance.
  • Revenue increased by 8.5% to reach AED3,128 million. Mobile services revenues continued their recovery: revenues increased by 6.9% to reach AED 1,402 million, while handset sales generated revenues of AED 216 million. Fixed services revenues jumped 22.8% to AED 815 million thanks to sustained demand from residential and business customers. In total, service revenue increased by 12.2% to reach AED2,217 million.
  • EBITDA increased by 13.3% year-on-year to reach AED1,269 million. This improvement is mainly due to the increase in service revenues. Given the higher profitability of mobile and fixed services, EBITDA margins increased by 170 basis points to 40.6%.
  • Net profit jumped 21% to reach AED311 million. The impact of higher EBITDA was partially offset by higher depreciation charges triggered by our infrastructure investment.
  • Capital expenditure was moderate at AED 305 million on a capital intensity of 9.7%. This reflects the usual seasonality, as most capital spending is geared towards the second half of the year. More importantly, our investment profile is starting to normalize after two consecutive years of high capital intensity.
  • Operating free cash flow (EBITDA – Capex) increased by 75% to reach AED 964 million. This is the combined result of improved EBITDA and lower capital expenditures.

Financial summary

million AED

Q1 2021

Q1 2022

cash

Revenue

2,883

3,128

8.5%

EBITDA

1,120

1,269

13.3%

Margin

38.8%

40.6%

1.7%

net profit

257

311

21.0%

Capex

-569

-305

-46.5%

capital intensity

19.7%

9.7%

-10.0%

Operating free cash flow

551

964

75.0%

margin

19.1%

30.8%

Fahad Al Hassaoui, CEO, said:

“Our Q1 22 results confirm that our recovery trajectory is on a sustainable path. The impact of COVID-19 is gradually fading. We continued to benefit from increased mobility and a general improvement in the economic environment. We also continued our efforts to deploy our innovative portfolio of products and services and implement business transformation. Our significant investment in infrastructure allows us to continue to innovate and improve the customer experience. More importantly, it lays the foundation for continued strong performance.

In addition, this quarter’s performance validates our strategy. My team is growth oriented. We are committed to revitalizing our core mobile and fixed operations while continuing to modernize our infrastructure. We will continue to work to maintain this positive business momentum throughout 2022.”

Sean B. Jackson