Du Sees a 5.4% Growth in Revenue in Q4
Emirates Integrated Telecommunications Company PJSC (“EITC”) announced its financial results for the year-ended 31 December 2021. Full-year revenues grew by 5.4% to AED 11.7 billion on sustained demand for broadband services and 5G handsets as well as a gradual recovery of mobile services. Revenues in Q4 staged a remarkable growth (+12%) thanks to several commercial initiatives supported by improving market conditions. Full-year EBITDA grew by 1.9% to AED 4.6 billion reflecting revenue growth and cost saving initiatives. We note the exceptional performance in Q4 as EBITDA increased by 20.5%. Net profit for the year reached AED 1.1 billion. In 2021, EITC invested a record amount of AED 2.6 billion as evidenced by the rapid 5G network roll-out. Despite the magnitude of investments, Operating Free Cash Flow (EBITDA – Capex) for the year remains strong at AED 2 billion.
On the basis of these results, the Board recommends a dividend, for the year 2021, of 21 fils per share, out of which 10 fils per share were already paid as an interim dividend on 24 August 2021.
2021 Operating highlights
“Our Mobile customer base grew by a remarkable 8.9% year-over-year. We ended the year with 7.3million subscribers on record net-additionsin Q4. This growth reflects the growth in postpaid customers as well as a significant increase in prepaid customers during Q4. Our postpaid customer base grew to 1.3 million reflecting our continuous focus on both the consumer and enterprise segments. Our prepaid customer base increased to 5.9 million subscribers thanks to the release of mobility restrictions (domestic and international) and higher tourist activity driven by Expo 2020.
Our Fixed customer base increased by an impressive 66% year-over-year. We ended the year with 390,000 subscribers on another record net-additions in Q4. Our customer base has grown consistently throughout each quarter. This solid performance was driven by our commercial initiatives across various product categories and the disciplined execution of our broadband strategy.”
Statement by Du
“While 2020 was challenging and tumultuous, 2021 was a year of recovery and transformation. In 2021, we returned to growth thanks to our consistent and disciplined strategy execution supported by a gradual improvement of market dynamics. During the year, we continued our ambitious investment program to accelerate the transformation and deployment of our infrastructure into a next-generation network for the benefit of our customers. We also fine-tuned our operational model and governance to evolve with our market, our industry and our customers’ needs. In 2021, we generated a Net Profit of AED 1.1 billion and an operating free cash flow of nearly AED 2 billion. Despite significant investments, our business remains very cash generative and our balance sheet solid with AED 5.6 billion in available liquidity.
Malek Sultan Al Malek, Chairman, TECOM Group
I am pleased to announce that, on the basis of our financial results, the Board is recommending a dividend, for the year 2021, of 21 fils per share, out of which 10 fils per share were already paid in August 2021 as an interim dividend. This corresponds to a distribution of 96% of net profit after appropriation for statutory reserves.”
“While 2021 presented its set of challenges, EITC emerged stronger and with an even greater sense of purpose. We built a tremendous commercial momentum by focusing on our customers. We are anticipating their requirements and we provide them innovative products and services. This drove an increase in our postpaid mobile and broadband customer base in the last quarter.
I am proud that we delivered growth in service revenues. Fixed service revenue trends from the consumer and enterprise segments remain buoyant. I am especially pleased to report that mobile service revenues returned to growth in Q4 following 12 consecutive quarters of decline. This vindicates our strategic roadmap and we have no plans to slow down.
We also continued managing our P&L and Cash Flow in a very dynamic manner. The launch of several savingsinitiatives coupled with the return of growth allowed us to increase our EBITDA.
We continued our ambitious deployment plans. We spent a record AED 2.6 billion on capex during 2021. This reflects our confidence in the future, our focus on fulfilling future customer demand and our ambition to be at the forefront of technological evolution. We have expanded our fibre footprint in terms of backhaul and premises connected. Our IT infrastructure continues its transformation.
We have the financial flexibility to pursue our exciting growth journey. My team and I are motivated by our financial and commercial perspectives for 2022.”
Fahad Al Hassawi, CEO, Du
