du Reports AED 1.632 Billion Net Profit for H1 2026, Raises Interim Dividend as AI and Data Center Investments Accelerate

Dubai | EcoPulse24

Emirates Integrated Telecommunications Company (du) reported strong financial and operational results for the first half of 2026, posting net profit of AED 1.632 billion, up 12.6% year-on-year, driven by higher revenues, expanding profitability and continued subscriber growth.

The company's Board of Directors also approved an interim cash dividend of AED 0.26 per share, representing an 8.3% increase from the corresponding period last year.

Total revenue for the first six months of the year increased 5.8% to AED 8.198 billion, supported by a 7.7% rise in service revenue to AED 6.029 billion, while other revenue reached AED 2.169 billion.

EBITDA grew 10.5% to AED 4.032 billion, with the EBITDA margin expanding to 49.2%, compared with 47.1% a year earlier.

Board Approves Higher Interim Dividend

Reflecting the company's solid financial position and cash generation, du's Board approved an interim cash dividend of AED 0.26 per share for the first half of 2026, marking an 8.3% year-on-year increase.

The company said the distribution underscores its commitment to delivering sustainable shareholder returns while continuing to invest in future growth.

Second-Quarter Momentum Continues

During the second quarter, du generated AED 4.083 billion in revenue, up 4.6% from the same period last year.

Service revenue increased 6.7% to AED 3.006 billion, while other revenue totaled AED 1.077 billion.

Quarterly EBITDA rose 9.2% to AED 1.994 billion, lifting the EBITDA margin to 48.8%, while net profit climbed 9.8% to AED 798 million.

Subscriber Base Continues to Expand

du continued to grow its customer base across both mobile and fixed-line services.

Mobile subscribers increased 1.6% year-on-year to 9.3 million.

The postpaid segment expanded 9% to 2.1 million subscribers, supported by strong demand from higher-value customers and the enterprise segment. Prepaid subscribers declined 0.4% to 7.2 million, reflecting softer tourism activity, although the company said improved prepaid offerings helped mitigate the impact.

Meanwhile, fixed-line subscribers grew 5.5% to 744,000, driven by continued demand for wireless broadband, fiber connectivity and enterprise communication solutions.

Strong Cash Generation Supports Investment

Free cash flow from operations reached AED 2.994 billion during the first half, representing 9.7% growth compared with the previous year.

Capital expenditure increased 12.7% to AED 1.038 billion, reflecting continued investment in network development, digital infrastructure and data center capacity.

Expanding Cloud, AI and Digital Infrastructure

du said it continued to execute its capital investment program, including preparations to launch new services through an agreement with a global Hyperscaler.

The company is also expanding investments in cloud computing, artificial intelligence and data centers, strengthening its position as a provider of advanced digital infrastructure in the UAE.

Beyond its core telecommunications business, du announced the launch of Ventures du, a strategic venture investment platform focused on startups and emerging technologies as part of its strategy to diversify future revenue streams.

Management Highlights Long-Term Digital Strategy

Chairman Malek Sultan Al Malek said the first-half results demonstrate the resilience of du's business model and its ability to execute efficiently despite regional developments. He added that the company continues to invest in digital infrastructure while supporting the UAE's digital transformation agenda.

Chief Executive Officer Fahad Al Hassawi said the second-quarter performance reflected disciplined execution of the company's strategy, continued customer growth and sustained investment in cloud computing, AI and data centers.

He added that the launch of Ventures du represents another strategic step toward accelerating innovation and investing in future technologies and high-potential startups.

EcoPulse24 Analysis

du's first-half results illustrate the company's continued evolution from a traditional telecommunications operator into a broader digital infrastructure provider. Revenue growth, expanding margins and stronger cash generation provide the financial flexibility to pursue long-term investments while simultaneously increasing shareholder distributions.

The company's accelerated investments in AI, cloud computing and data centers, together with the launch of Ventures du, signal a strategic shift toward capturing growth opportunities across the UAE's rapidly expanding digital economy. As enterprise demand for cloud infrastructure and AI-enabled services continues to rise, these investments could become increasingly important contributors to du's future earnings profile.

Key Financial Highlights