21 October 2026 19:35 |
Last updated: 21 October 2026 19:54
Emirates Integrated Telecommunications Company (du) has announced its financial results for the third quarter of 2026, reflecting a robust performance as business conditions gradually stabilise following earlier disruptions. The persistent demand for communication services and digital offerings, coupled with a stabilising macroeconomic environment, has driven the company’s revenues up by 6.2% year-on-year during the first nine months of the year, amounting to AED 12.3 billion. Revenues from services rose by 6.8% to AED 9 billion, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 9.2% to AED 6 billion, underscoring the company’s disciplined approach to its business strategy and operational efficiency. The EBITDA margin expanded by 1.3 percentage points to 48.7%. Net profit also climbed by 10.8% to AED 2.4 billion, highlighting the resilience of the company’s operational model and its ability to achieve profitable growth.
During the third quarter, du renewed its general telecommunications licence for an additional 20 years, along with an extension of the franchise fee system for three years. This renewal enhances the long-term regulatory outlook and ensures continuity in operational activities.
Subscriber Base Growth
Du’s subscriber base continued to grow, with mobile service subscribers increasing by 3.3%, while fixed line subscribers saw a rise of 5.2%. The pace of growth moderated in response to changing business conditions and regional developments. Overall company revenues surged by 7.1% year-on-year during the third quarter, supported by revenue growth across various business areas, particularly in other revenue categories. The discipline in executing the business strategy has helped maintain a stable EBITDA margin of 47.7% throughout the third quarter, with net profit increasing by 7.3% to AED 786 million.
Operational Resilience
Fahad Al Hassawi, the CEO of Emirates Integrated Telecommunications Company (du), noted, “Our results from the first nine months of 2026 reflect the resilience of our operations and our ongoing focus on driving purposeful growth. Revenues increased by 6.2% to AED 12.3 billion, and EBITDA rose by 9.2%, while net profit saw a 10.8% increase. This performance illustrates the strength of our business model and our discipline in managing operations during a period marked by several changes in the business environment.”
He added, “Our investments in data centres, cloud computing, and advanced connectivity services extend our reach beyond traditional telecommunications, reinforcing our position at the forefront of the digital economy in the UAE. As businesses and government entities accelerate their digital transformation, we aim to solidify our position as a trusted partner in that journey. The renewal of our general telecommunications licence for an additional 20 years provides a clear pathway to support our long-term vision and enables us to plan confidently for the future. Despite ongoing uncertainties regarding regional developments, we remain committed to meeting our customers’ needs and delivering substantial returns to our shareholders, backed by our faith in the strength and growth prospects of the UAE economy.”
Subscriber Metrics
In the third quarter, the mobile service subscriber base grew by 3.3% year-on-year, reaching 9.5 million. The post-paid subscriber base surged by 6.4% to 2 million, buoyed by sustained momentum among premium customers and the business sector, alongside the successful launch of the iPhone 18. Additionally, the pre-paid subscriber base grew by 2.5% to 7.4 million, supported by attractive offers under the Easy and Alo packages. The fixed-line subscriber base rose by 5.2% year-on-year to 756,000, driven by increased demand for home wireless internet solutions that appeal to cost-conscious customers seeking flexible and reliable connectivity options.
Third Quarter Performance Insights
Revenues for the third quarter climbed by 7.1% year-on-year to AED 4.1 billion, primarily fueled by robust growth in fixed-line services, information and communications technology (ICT) offerings, and wholesale sales. Mobile service revenues increased by 3.9% year-on-year to AED 1.8 billion, reflecting growth in the subscriber base and a diversified revenue mix, indicative of the company’s strategy to enhance high-value service offerings contributing to average revenue per user (ARPU).
Fixed-line service revenues also rose by 7.1% year-on-year to AED 1.2 billion, driven by strong demand for home wireless internet and tailored solutions for businesses. Other revenues saw an impressive increase of 12.6% year-on-year, reaching AED 1.1 billion, attributable to growth in wholesale sales, ICT services, and devices and accessory sales, especially following the iPhone 18 launch. EBITDA witnessed a 6.7% increase to AED 2 billion, supported by a better revenue mix despite rising direct costs. Continuous focus on cost efficiency and operational discipline helped alleviate inflationary pressures associated with regional circumstances.
Net profit rose by 7.3% year-on-year to AED 786 million, driven by increases in EBITDA. The EBITDA margin remained stable at 47.7%, confirming the company’s solid business model and its capacity for profitable growth while continuing to create sustainable value for shareholders. Capital expenditures reached AED 647 million during the third quarter of 2026, compared to AED 492 million in the same period in 2025, reflecting increased investment in data centre infrastructure and enhancements to du’s network. Free cash flow from operations (EBITDA – Capex) experienced a slight decline of 2.3% to AED 1.3 billion, primarily due to higher capital expenditures in the third quarter. The company’s strong financial position and debt-free balance sheet, coupled with its ability to generate sustainable cash flows, affords flexibility to accelerate investments in high-growth areas while consistently providing attractive returns to shareholders.