du Reports Strong Q1 2026 Growth
Emirates Integrated Telecommunications Company reported solid first-quarter results for 2026, as revenue and profit increased despite late-quarter pressures. Revenue rose 6.9 percent year on year to Dh4.1 billion, while net profit grew 15.5 percent to Dh834 million. In addition, EBITDA increased 11.7 percent to Dh2.0 billion, and margins expanded to a record 49.5 percent.
The company benefited from strong momentum in January and February, as demand remained stable across mobile, fixed, and enterprise segments. Moreover, disciplined execution supported consistent growth during the early part of the quarter. However, operating conditions shifted in March, which affected overall performance.
March Slowdown and Changing Demand
Geopolitical developments influenced business activity in March, and therefore, the company faced softer conditions. Tourist inflows declined, while inbound roaming activity dropped significantly. As a result, subscriber additions slowed, and average revenue per user weakened as both consumers and businesses reduced discretionary spending.
At the same time, usage patterns changed, as demand for fixed connectivity increased due to remote working and learning trends. Although these shifts created pressure on revenue quality, the company maintained uninterrupted operations through its continuity measures.
Growth Across Core Segments
Service revenues increased 8.7 percent year on year to Dh3.0 billion, supported by growth in both mobile and fixed segments. Mobile service revenue rose 7.2 percent to Dh1.8 billion, driven by subscriber growth and a higher share of postpaid users. Meanwhile, fixed service revenue grew 11.1 percent to Dh1.2 billion, supported by enterprise demand and expansion in home wireless services.
Other revenues also increased by 2.3 percent to Dh1.1 billion. However, lower roaming and interconnection income partially offset these gains. The mobile subscriber base grew 6.1 percent to 9.7 million, while postpaid subscriptions increased 9.6 percent. In addition, prepaid customers rose 5.2 percent, largely due to resident demand. The fixed subscriber base also expanded by 6.3 percent to 745,000.
Operating free cash flow increased 14.2 percent to Dh1.7 billion, supported by higher earnings and disciplined capital spending. Capital expenditure reached Dh386 million, focusing on network expansion, fibre rollout, and data centre investments. Furthermore, the balance sheet remained unleveraged, while refinancing a Dh2 billion credit facility improved liquidity and financial flexibility.
Although near-term conditions remain uncertain due to geopolitical factors, the company maintained its full-year outlook. Therefore, the first-quarter results reflect resilience, even as travel-related activity and customer spending softened toward the end of the period.
