Emirates Integrated Telecommunications Company, mainly known as du, on Monday, provided a net income of dh1.44 billion for 2020 in comparison to Dh1.73 billion in the relevant time frame.
The UAE’s second telecom operator provided a net profit of Dh48 million in the fourth quarter of 2020 due to a one-off goodwill discount of Dh137 million concerning the company’s broadcasting business, caused by the Covid-19 pandemic. Prohibiting this discount, the net income for the fourth quarter was Dh185 million.
The great performance reflects the flexibility of the company’s model in a troublesome working climate due to the pandemic. EITC’s capital expenditure raised by 24.1 percent year-over-year to Dh1.87 billion, showing a capital intensity of 16.9 percent, it’s the speakest level over the previous five years.
The company’s board approved a dividend distribution of 28 fils per share, from which 13 fils per share were paid in August 2020 as an interval dividend.
The Dubai-based company’s fourth-quarter income rose by 1.9 percent, in comparison to the third quarter of 2020, to Dh2.74 billion, showing two succeeding quarters of growth in 2020 as economic activity carries on to recover. Revenues for the whole year 2020 were about Dh11.08 billion.
The company’s fourth-quarter mobile profits were almost static at Dh1.32 billion while fixed profits were at Dh645 million. Its whole year 2020 secured revenues raised to Dh2.57 billion, up by three percent in comparison to the last year.
The company’s fourth quarter’s EBITDA was Dh1.03 billion, providing a hold erosion as the company carried on with to implement cost optimization initiatives to drive productivity across the business and streamline its operations. EBITDA for the year was Dh4.51 billion, showing a solid EBITDA verge of 40.7 percent.
Mohamed Al Hussaini, chairman of EITC, said the company has been able to travel in a shaking environment and make sure the proficient arrangement of telecom administrations, important to the economy and the community mainly on these troublesome occasions.
“We remain committed to further developing and modernizing our infrastructure by investing in future technologies. In 2020, we increased our capital expenditure by 24.1 percent to reach Dh1.87 billion, representing the company’s highest level of capital intensity over the last five years, which was primarily used to enhance our network and continue our 5G rollout.”
Fahad Al Hassawi, the acting CEO of EITC, said: “Our business saw a positive momentum towards a gradual return to normality in the second half of 2020, as economic activity and trade and tourism resumed. We reported two consecutive quarters of positive revenue growth in the third and fourth quarter of 2020, respectively.”