Page 39 - SAMENA Trends - February 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

du Announces 9.3 Percent Growth in 2019 Net Profit

Emirates Integrated Telecommunications of AED 5.68 billion growing by 1 percent Q4 2019 Net Income grew by 30.4 percent
Company PJSC (DFM: “du”) published on a like-for-like basis, the Company was on a like-for-like basis when compared to
its fourth quarter and annual financial able to absorb the pressure on its top-line the one of Q4 2018. Growth in profit is led
results for the year 2019. It reported thanks mainly to a better mix of revenues by increase in fixed revenues as well as
a strong growth of 9.3 percent in its and efficiency in managing its cost base. efficiency efforts. EITC reported revenues
annual Net Profit (on a like-for-like basis) Capital expenditure increased by 46.8 for Q4 2019 were at AED3.2 billion,
and an acceleration in the deployment percent to AED 1.5 billion (or 12 percent showing an erosion of 6.1% compared
of its investment plan, particularly in of the revenues) reflecting continuation of to the ones of Q4 2018. The growth of
connection with 5G roll-out and fiber the investment in 5G network rollout, fiber fixed revenues has partially absorbed the
network expansion with annual capital network expansion and IT modernization pressure on mobile prepaid and handset
expenditures reaching AED 1.5 billion. and transformation initiatives. EITC’s revenues. Capital expenditures increased
On the basis of these results, the board subscriber base continued its growth in in Q4 2019 to 709m (or 22 percent of the
recommended to the shareholders, for the the fixed segment reaching at the end of revenues) reflecting the acceleration of
year 2019, a dividend distribution of 34 fils 2019, 219 thousand subscribers reflecting investment in 5G network rollout and
per share out of which 13 fils per share a 7.1 percent growth when compared to IT modernization and transformation
have been already paid in August 2019 as last year and stabilized its mobile base as initiatives. Commenting on the results,
an interim dividend. EITC reported for the the impact of SIM registration started in Mohamed Al Hussaini, Chairman of EITC
year 2019 a total Net Profit of AED 1.73 Q4 to fade away. EITC continued to focus said: “I am pleased with the strong results
billion. On a like-for-like basis, Net Profit on attracting high-value post-paid mobile that EITC was able to achieve despite the
grew by 9.3% reflecting a better product customers, supporting an annual ARPU challenging environment that the telecom
mix that led to an improvement in the gross growth of 4.3 percent. Q4 2019 revenues market went through in 2019. EITC was
margin as well as an improved efficiency increased by 4.1 percent compared to able to absorb fully the pressure on its
in the management of the business. the previous quarter to reach AED 3.2 revenues through increasing focus on
These positive results were achieved in billion as a result of the steady increase promising growing revenue streams, better
a challenging environment where total in fixed and “other segment” revenues. mix of its base and increased efficiency. It
market revenues declined. Indeed, EITC The revenue growth reflected both a also re-affirmed its commitment to the
reported in 2019 annual revenues of AED seasonality effect and a stabilization of investment in the country infrastructure
12.59 billion showing an erosion of 6.2%. the subscriber base as the impact of SIM accelerating the deployment of its 5G
The growth of fixed and ICT revenues registration disconnections is fading away. network to support the future development
absorbed partially the pressure on mobile The Increase in revenues coupled with of new products and services. This has
prepaid revenues adversely impacted cost efficiency and certain reversals led been translated into a net income of
by pricing, competition and the negative to an improvement in the EBITDA and the AED1.73 billion that supported board
impact on the base of the SIM registration Net Income by respectively 9.6 percent and recommendation for a dividend distribution
disconnections. With an annual EBITDA 14.5 percent when compared to Q3 2019. of 34 fils per share.” Commenting on the
results, Johan Dennelind, new CEO of EITC
said: “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.”

39 FEBRUARY 2020