du reports Q1 2026 Results delivering a strong start to the year

Emirates Integrated Telecommunications Company PJSC (“du”) today announced its financial results for the first quarter ended 31 March 2026, marking a strong start to the year despite some weakness observed in March. Performance in January and February was excellent, reflecting effective execution across du’s core businesses and the resilience of its operating model. March was impacted by an unusual convergence of external factors including regional geopolitical developments. Against this backdrop, du delivered resilient financial performance in the first quarter, with revenue growing by 6.9% to AED 4.1 billion, a record EBITDA margin of 49.5%, and net profit growing by 15.5% to AED 0.8 billion. This strong performance was supported by uninterrupted network operations and solid underlying fundamentals, demonstrating the resilience of du’s business model in a highly atypical operating environment.

Q1 2026 Highlights

•    Strong commercial momentum in January and February, reflecting disciplined execution across mobile, fixed, and enterprise segments, resulted in revenue growth of 6.9% year on year to AED 4.1 billion, despite the weakness noted in March.

•    Excellent operational discipline, favourable mix effects and some one-offs drove EBITDA growth of 11.7% to AED 2.0 billion, with EBITDA margin increasing by 2.1 percentage points to 49.5%, while net profit increased by 15.5% year on year to AED 0.8 billion.

•    Strong cash generation continued, with operating free cash flow rising by 14.2% to AED 1.7 billion, reflecting higher EBITDA and disciplined capital deployment.

•    Liquidity and financial flexibility remained robust, supported by solid cash generation and a strong net cash position, while our balance sheet remains unleveraged.

•    Successful refinancing of an AED 2 billion revolving credit facility in April, securing improved terms and a 7-year tenor, reinforced our financial flexibility.

Fahad Al Hassawi, CEO said: 

"du started 2026 with strong fundamentals and clear commercial momentum across mobile, fixed, and ICT. We delivered an excellent set of financial results, with revenues up 6.9%, EBITDA up 11.7% and net profit rising 15.5%. Our performance in the first two months of the year reflected the favourable operating environment and the disciplined execution of our strategy. March presented a change in the operating environment, that resulted in significant reduction of tourist inflows and inbound roaming activity, some pressure on gross subscriber additions, and short term ARPU softness as both consumers and businesses moderated discretionary spending. We also observed shifts in usage patterns toward fixed connectivity as remote working and learning increased. Throughout, our operations remained fully resilient, and our teams delivered uninterrupted service to customers across the UAE following the activation of our business continuity plans.

With near‑term uncertainty remaining elevated, du continues to adapt to the situation, and manage its business in an agile manner to cope with changing operating environment. As a provider of vital infrastructure, we continue to benefit from a resilient business model supported by strong fundamentals and a solid balance sheet. We continue to monitor business conditions closely, assess and adjust to the evolving situation. We are maintaining our full-year guidance for the time being, as we believe additional clarity and data are required before providing further visibility."

Customer base

•    In Q1, du’s mobile subscriber base grew by 6.1% year‑on‑year to 9.7 million customers, reflecting strong underlying momentum in the first two months of the year. Over the past 12 months, the mobile base expanded by 555,000 subscribers, underscoring sustained demand for du’s differentiated mobile propositions despite a more volatile operating environment in March.

o    Postpaid continued to be a key growth engine, with the customer base increasing by 9.6% year‑on‑year to 2.0 million subscribers. Growth was supported by strong performance in January and February across both consumer and enterprise segments, driven by premium propositions, resilient government demand, and continued device‑led momentum. March reflected a moderation in activations, particularly in resident and SME segments.

o    Prepaid subscriber growth of 5.2% year‑on‑year to 7.7 million customers was driven primarily by resident demand, supported by customised value plans and the continued strength of the Alo brand among blue‑collar workers. In a more uncertain environment, prepaid propositions continued to offer customers greater flexibility, while lower tourist inflows and weather conditions weighed on prepaid activations in March.

•    The fixed subscriber base continued to be resilient in Q1, growing 6.3% year‑on‑year to 745,000 customers, reflecting sustained demand for du’s fixed connectivity propositions.

o    Growth was mainly underpinned by du Home Wireless, which continued to resonate with customers by offering flexibility and shorter‑term commitment options, particularly relevant in an uncertain operating environment.

o    Fibre broadband growth was supported by ongoing network expansion and targeted penetration in high‑growth residential areas while March witnessed lower Fibre activations. 
Q1 2026 Financial Highlights

•    Q1 revenues grew by 6.9% year-over-year to AED 4.1 billion, underpinned by strong performance in January and February across core connectivity businesses, favourable mix effects, and continued expansion in digital and adjacent services, partially offset by the impact of regional conflict and adverse weather conditions in March.

•    Q1 Mobile service revenues increased by 7.2% year-over-year to AED 1.8 billion driven by subscriber base growth and a favourable mix shift toward postpaid, reflecting strong commercial momentum in January and February. This was partially offset by the impact of the regional conflict in March, which affected tourist‑related revenues and to a lesser extent resident prepaid activity.

•    Q1 Fixed service revenues rose by 11.1% year-over-year to AED 1.2 billion driven by strong performance in Enterprise Connectivity owing to successful SME-focused offers and supported by subscriber base expansion and ARPU uplift reflecting the normalization of Home Wireless promotions.

•    Q1 “Other revenues” grew by 2.3% year-over-year to AED 1.1 billion driven primarily by continued expansion in ICT services and stronger handset sales, partially offset by lower revenues in interconnection and roaming.

•    Q1 EBITDA improved by 11.7% to AED 2.0 billion, with an EBITDA margin of 49.5%. This performance was underpinned by strong momentum in January and February from a more favourable mobile mix, interconnect cost reductions, and continued cost discipline. These drivers, together with some one‑off benefits, more than offset margin dilution from higher handset sales and the impact of the regional conflict in March, which weighed on roaming revenues and resulted in higher bad‑debt provisions.

•    Q1 Net Profit grew by 15.5% year-over-year to AED 0.8 billion, benefitting from higher EBITDA.

•    Q1 Capex amounted to AED 386 million, with capital intensity at 9.4% (Q1 2025 capital intensity: 9.8%), reflecting the usual back‑loaded investment profile and an unchanged investment plan. Capital allocation remained focused on mobile network enhancement and densification, continued fibre expansion, and the gradual ramp‑up of data‑centre investments, supporting du’s long‑term revenue diversification strategy.

•    Q1 Operating free cash flow (EBITDA – Capex) increased by 14.2% to AED 1.7 billion, reflecting EBITDA trend. Solid cash generation continued to strengthen our balance sheet, giving us the flexibility to navigate the current environment and invest in future growth opportunities.

•    In April, du successfully refinanced its revolving credit facility, securing a new AED 2.0 billion, seven‑year undrawn revolving credit facility on improved terms with a syndicate of local and international banks, reinforcing our financial flexibility and proactive approach to liquidity management.