The Emirates Integrated Telecommunications Company (EITC) has announced a strong increase in profits during 2019 for its flagship brand, du.
du’s annual like for like net profit increased by 9.3 per cent in 2019, despite the company shelling out $408 million (AED1.5 billion) in capital investment in its next generation networks.
Net profits grew to $471 million (AED1.73 billion) in 2019, as the company began the rollout of its 5G mobile networks. The 5G rollout necessitated a 46.8 per cent increase in capital expenditure on a year-on-year basis.
"I am pleased with the strong results that EITC was able to achieve despite the challenging environment that the telecom market went through in 2019. EITC was able to absorb fully the pressure on its revenues through increasing focus on promising growing revenue streams, better mix of its base and increased efficiency. It also re-affirmed its commitment to the investment in the country infrastructure accelerating the deployment of its 5G network to support the future development of new products and services. This has been translated into a net income of AED1.73 billion that supported board recommendation for a dividend distribution of 34 fils per share," said Mohamed Al Hussaini, Chairman of EITC.
Last September, du appointed former Telia Group boss, John Dennelind, as its new CEO. He replaced Osman Sultan, who had led the Dubai based telco for the past 14 years.
"I am excited to join EITC in this phase of its evolution. 2019 has been a year of paradigm shift in the telecommunication industry in UAE. I note that EITC has been able to navigate in a changing environment, starting to pull growth levers in promising business lines, to protect its margins and profitability and to inject important capital towards the deployment and modernization of its infrastructure. As the new CEO, I will work with the team to define and then execute a full transformational plan for the Company to deliver on the digital promise, further improve customer experience and be at the forefront of the new technological evolutions aiming for a world class digital telco creating value for our shareholders," he said.