Emirates News Agency – Emirates Integrated Telecommunications Company reports first quarter 2022 results

DUBAI, 28th April, 2022 (WAM) — Emirates Integrated Telecommunications Company PJSC (EITC) has announced its financial results for the quarter ended 31st March 2022.

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 service revenues jumped 22.8% to reach AED 815 million on strong consumer and business demand. 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, the 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.

Targeted commercial initiatives led to a 10.4% growth in the number of mobile customers. EITC ended the quarter with 7.5 million subscribers on healthy net additions in the postpaid and prepaid segments. It recorded a third consecutive quarter of net additions in the postpaid segment which reached 1.4 million customers. The prepaid customer base grew to 6.1 million thanks to targeted offers, buoyant tourism activity and the continued improvement in the economic environment.

The consumer broadband offer remains extremely attractive. It 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.

Fahad Al Hassawi, CEO, said: “Our Q1 22 results confirm that our recovery trajectory is on a sustainable path. The impact of COVID-19 is gradually easing. We continued to benefit from increased mobility and a general improvement in the economic environment. our efforts to deploy our innovative portfolio of products and services and implement business transformation. Our significant investments in infrastructure allow us to continue to innovate and improve the customer experience. In addition, this quarter’s performance validates our strategy. My team is geared towards growth. We are committed to revitalizing our main mobile and fixed activities while continuing to modernize our infrastructures. We will continue to work to maintain this positive business momentum throughout 2022,” he added.

Sean B. Jackson