UAE Telecom Firm Du Records Q1 Growth Despite Impact Of Regional Conflict

2026-04-22 02:20:17

(MENAFN- Khaleej Times) Emirates Integrated Telecommunications Company, popularly known as du, recorded net profit and revenue growth in the first quarter of 2026 despite March being a challenging month due to the outbreak of the regional conflict.

The UAE's second telecom operator's net profit during January-March 2026 increased by 15.5 per cent year-on-year to Dh800 million. It recorded EBITDA growth of 11.7 per cent, reaching Dh2 billion.

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The company said January and February saw strong commercial momentum, but March was impacted by an unusual convergence of external factors, including regional geopolitical developments. Its first-quarter revenues grew 6.9 per cent to Dh4.1 billion, supported by uninterrupted network operations.

Strong cash generation continued, with operating free cash flow rising by 14.2 per cent to Dh1.7 billion.

It successfully refinanced a Dh2 billion revolving credit facility in April, securing improved terms and a seven-year tenor.

“du started 2026 with strong fundamentals and clear commercial momentum across mobile, fixed, and ICT. 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 a significant reduction in 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,” said Fahad Al Hassawi, CEO of du.

“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,” he added.

With near-term uncertainty remaining elevated, he said du continues to adapt to the situation and manage its business in an agile manner to cope with the changing operating environment.

“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,” he said.

In April, du refinanced its revolving credit facility, securing a new Dh2 billion, seven-year undrawn revolving credit facility on improved terms with a syndicate of local and international banks.