Dubai: Emirates Integrated Telecommunications Company PJSC (du) reported its financial results for the first quarter of 2025, marked by robust growth in both revenues and profitability. Total revenues increased by 7.4% year-over-year, driven by solid performance across both service and non-service segments. EBITDA rose by an impressive 15.0% supported by improved revenue mix and efficient cost management, resulting in an exceptional EBITDA margin of 47.4%. This operational strength translated into a net profit increase of 19.8%, underscoring continued momentum and financial discipline, according to a press statement released by the company today.
According to Emirates News Agency, Q1 revenues grew by 7.4% year-over-year, reaching AED 3.8 billion with growth in both service and non-service revenues primarily driven by the strong macro environment in the UAE, du's ability to gain market share, as well as a sustained focus on high ARPU products and mix improvement. Q1 Mobile service revenues increased by 7.4% year-over-year to AED 1.7 billion driven by the growth of the customer base, improved mix, and enhanced ability to capture demand for higher ARPU products through higher offer personalization and data-driven Customer Value Management, as well as some non-recurring revenues.
Q1 Fixed service revenues rose by 10.2% year-over-year, reaching AED 1.1 billion, mainly driven by higher fibre penetration and the continuing success of the Home Wireless product and Enterprise connectivity solutions. Q1 'Other revenues' grew by 4.8% year-over-year to AED 1.1 billion, driven by the expansion of the ICT business as du continues to seek new revenue streams beyond its core business. The growth was also driven by higher in-bound roaming revenues supported by higher tourists' inflow and higher interconnection revenues reflecting a higher mobile base. This was partly offset by lower handset sales mainly reflecting a phasing effect, with Q1 2024 handset sales benefiting from a pull-forward in demand due to supply constraints in the prior quarter, resulting in a higher comparison base.
Q1 EBITDA grew by 15.0% to AED 1.8 billion, with an EBITDA margin of 47.4%. The strong revenue growth, improved mix, increased ARPU, lower handset sales, and lower authentication costs, as well as the positive impact of the non-recurring revenue items, resulted in a higher gross margin. This was coupled with improved collections performance and continuous focus on operational efficiency and strong control of indirect costs. Q1 Net Profit witnessed a 19.8% growth year-over-year to AED 722 million, representing a Net Profit margin of 18.8% reflecting strong EBITDA performance and positive interest result.
Q1 Capex was at AED 377 million (Q1 2024: AED 359 million), a capex intensity of 9.8% (Q1 2024 capex intensity of 10.0%). Core investments remain focused on 5G densification, enhancing indoor coverage, and expanding Fibre deployment, with further capital allocation to continue developing ICT activities. Du will also continue improving infrastructure and transforming IT systems to further enhance the quality of the network and elevate customer experience. Q1 Operating free cash flow (EBITDA - Capex) increased by 17.9% to AED 1.4 billion, mainly driven by EBITDA growth.