Emirates News Agency – 283 million dirhams, net profit of “Emirates Integrated Telecommunications” in the third quarter

Emirates News Agency – 283 million dirhams, net profit of “Emirates Integrated Telecommunications” in the third quarter
Emirates News Agency – 283 million dirhams, net profit of “Emirates Integrated Telecommunications” in the third quarter

DUBAI, 19th October / WAM / The Emirates Integrated Telecommunications Company announced its financial results for the third quarter of this year, recording a remarkable growth in its total revenues by 6.9% to reach 2.874 billion dirhams, driven by the continuous demand for broadband services and smart devices supported by the fifth generation technology, in addition to the continuing demand for broadband services and smart devices supported by 5G technology. The recovery of mobile services thanks to the growth in demand from the segment of postpaid subscribers.

The company’s earnings before interest, taxes, depreciation and amortization amounted to 1.1 billion dirhams as a result of the programs implemented by the company to improve cost efficiency, which helped contain the impact of direct costs on the profit margin.

The company achieved a net profit of 283 million dirhams, despite the increase in depreciation and depreciation charges.

The mobile subscriber base also reached 6.5 million, and the postpaid subscriber base continued to maintain its high level of flexibility, as the net number of new subscribers in this segment reached 13,000, with the postpaid customer base growing to 1.3 million subscribers as a result of the improvements made by the company to the Power Payment packages. Postpaid in addition to improved digital experiences for customers and the continued success of device installment plans. While the prepaid customer base fell to 5.2 million subscribers as a result of a combination of seasonal effects during the summer and restrictions imposed on travel with the emergence of the Corona virus.

The investments injected by the company during the last period have achieved remarkable results, especially in terms of expanding the coverage of the fifth generation network, which currently covers more than 90% of the UAE population. According to independent tests conducted by the company, its 5G network recorded the highest average speeds in the UAE during this quarter. In addition, we opened two new data centers in Khalifa Industrial City in Abu Dhabi and Dubai Silicon Oasis in Dubai. The total capacity of these centers is 2.7 megawatts.

The company’s total revenue during the third quarter increased by 6.9% year-on-year to reach AED 2.874 billion.

Revenues from fixed line services grew by 14.7% to 731 million dirhams, with the two segments of retail and institutional customers continuing to show good performance. Other services revenue increased by 16.6% to AED 839 million as a result of doubling sales of smart devices and wholesale revenue. The recovery witnessed in the postpaid services segment led to the recovery of mobile phone revenues to reach 1.304 billion dirhams.

The company’s earnings before interest, taxes, depreciation and amortization declined by 4.9% year-on-year to 1.1 billion dirhams. The cost-efficiency enhancement programs implemented by the company continued to achieve good results, as the company was able to rationalize marketing, general and administrative expenses, and the company also worked to improve the process of collecting receivables, thus reducing the related provisions. These initiatives have contributed to reducing pressure on direct costs (product costs and interconnection costs).

net profit/adjusted/ decreased[1] By 7.1% to 283 million dirhams, as depreciation and depreciation expenses increased as a result of the company’s investment programs. The company’s sale of its stake in Khazna Data Center Company in 2020 reduced the partners’ contribution.

Capital expenditures decreased by 27.3% to reach AED 372 million as a result of dividing the spending stages, which resulted in the growth of free cash flow from operations to AED 728 million.

Fahad Al-Hasawi, CEO of Emirates Integrated Telecommunications Company, said: We are pleased to see the remarkable improvement in the confidence of our customers, both individuals and companies, during the third quarter of 2021, in addition to the encouraging and strong results that the fixed-line services segment continued to register during the past quarter, as the number of new subscribers to broadband services reached 52,000 subscribers as a result of our improved services. In addition, during the third quarter, we noticed a recovery in the demand for fixed-line services from our corporate customers.

He added that the company’s commercial initiatives that were implemented in the mobile services segment achieved very good results, as the updated and improved tariff plans for prepaid mobile services contributed to improving the number of subscribers in the prepaid services segment, close to pre-pandemic levels. In addition, the improved tariff plan for postpaid services continues to stimulate usage and support the ARPU growth path.

Al-Hasawi added that two years of investments have been made to spread the fifth generation network, the company has succeeded in expanding the network’s coverage to currently include more than 90% of the UAE population. The company’s goal for the next phase is to continue working on expanding the coverage to include all residents of the Emirates.

 
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