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Earnings Report

Emirates Integrated Telecommunications Company

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

Emirates Integrated Telecommunications Company (du) reported its Q1 2026 results, delivering a strong and resilient performance with solid revenue growth and improved profitability, despite some weakness toward the end of the quarter.

2. Financial Performance Snapshot

  • Revenue: AED 4.1B (+6.9% YoY)

  • EBITDA (operating profit before D&A): AED 2.0B (+11.7% YoY)

  • Net profit: AED 0.83B (+15.5% YoY)

  • EBITDA margin: 49.5% (expansion YoY)

  • Operating profit: AED 1.48B

  • Operating free cash flow: AED 1.65B (+14.2% YoY)

  • Capital intensity: 9.4%

3. Operational Highlights & Key Metrics

  • Mobile subscribers: 9.7M (+6.1% YoY)

  • Postpaid subscribers: 2.0M (+9.6% YoY)

  • Prepaid subscribers: 7.7M (+5.2% YoY)

  • Fixed subscribers: 745K (+6.3% YoY)

  • Service revenue growth: +8.7% YoY

  • Capex: AED 386M

4. Key Performance Drivers

du’s Q1 performance was driven by strong commercial momentum and disciplined cost management, particularly in the early part of the quarter, as reflected in both the press release and financial statements (page 3).

Key drivers included:

  • Solid subscriber growth across mobile and fixed segments, supporting revenue expansion

  • Favorable mix shift toward postpaid users, improving margins and ARPU quality

  • Strong growth in ICT and enterprise connectivity services, aiding diversification

  • Cost discipline and interconnect cost optimization, supporting EBITDA margin expansion

  • External headwinds in March (lower tourism, roaming, and usage softness) partially impacting momentum

Overall, early-quarter strength and operational discipline offset late-quarter external pressures.

5. Outlook & Forward Guidance

du is maintaining its full-year guidance, while closely monitoring evolving market conditions.

Key forward considerations include:

  • Continued growth across mobile, fixed, and ICT segments

  • Focus on cost discipline and margin preservation

  • Ongoing investment in network expansion, fibre, and data centers

  • Agile response to macro and demand fluctuations

The company continues to benefit from a resilient business model and strong balance sheet with solid cash generation.

6. 🧾 Investor Takeaway

du delivered strong growth in revenue and profitability, supported by subscriber expansion and cost discipline, while demonstrating resilience amid short-term external pressures.