Dubai: UAE telecom operator du reported a 10.8 per cent increase in net profit to Dh2.4 billion for the first nine months of 2026, supported by higher revenue, subscriber growth and improved operating margins despite disruptions earlier in the year.
Revenue rose 6.2 per cent year-on-year to Dh12.3 billion, while service revenue increased 6.8 per cent to Dh9 billion, driven by sustained demand for mobile, broadband and digital services.
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Earnings before interest, taxes, depreciation and amortisation (EBITDA) climbed 9.2 per cent to Dh6 billion, with the operating margin improving to 48.7 per cent from 47.3 per cent a year earlier.
The company said stronger customer demand, cost management and a more stable economic environment helped support its performance following the regional disruptions experienced earlier in 2026.
Quarterly profit rises 7.3%
For the third quarter, du reported a 7.3 per cent increase in net profit to Dh786 million, compared with Dh732 million a year earlier.
Quarterly revenue grew 7.1 per cent to Dh4.1 billion, supported by growth across its mobile, fixed-line, information and communications technology (ICT), and wholesale businesses.
Mobile revenue increased 3.9 per cent to Dh1.8 billion, while fixed-line revenue rose 7.1 per cent to Dh1.2 billion, driven by demand for home wireless services and enterprise connectivity.
Other revenue, which includes wholesale, ICT, handsets and accessories, climbed 12.6 per cent to Dh1.1 billion, partly supported by the launch of Apple's iPhone 18.
Quarterly EBITDA increased 6.7 per cent to nearly Dh2 billion, while the EBITDA margin remained broadly stable at 47.7 per cent.
Mobile subscribers reach 9.5m
du's mobile subscriber base expanded 3.3 per cent year-on-year to 9.5 million customers during the third quarter, although the company said the pace of customer growth moderated amid regional challenges.
Postpaid subscribers increased 6.4 per cent to 2 million, supported by demand from premium consumer and business customers, alongside the iPhone 18 launch.
Prepaid subscriptions grew 2.5 per cent to 7.4 million, helped by customer demand for the operator's easy and alo plans.
The fixed-line customer base also expanded, rising 5.2 per cent to 756,000 subscribers, with home wireless services contributing to growth.
Investments in data centres
du increased its capital expenditure during the quarter to Dh647 million, up 31.5 per cent from Dh492 million a year earlier.
The additional spending primarily reflected investments in data centre infrastructure and network improvements.
For the first nine months, capital expenditure reached Dh1.68 billion, an increase of 19.1 per cent year-on-year.
Operating free cash flow, calculated as EBITDA less capital expenditure, rose 5.7 per cent to Dh4.32 billion during the nine-month period. Third-quarter operating free cash flow declined 2.3 per cent to Dh1.33 billion as investment spending increased.
Fahad Al Hassawi, Chief Executive Officer of du, said the company's investments were expanding its operations beyond traditional telecom services.
“Our investments in data centres, cloud and advanced connectivity are extending our role beyond traditional connectivity and positioning du at the centre of the UAE’s digital economy. As enterprises and government entities digitise and scale, we aim to be their trusted partner.”
Telecom licence renewed
During the third quarter, du secured a 20-year renewal of its telecommunications licence, while its existing royalty regime was extended for another three years.
The renewal provides greater regulatory certainty for the company's long-term investment and expansion plans.
du was also included in the MSCI UAE Standard Index and FTSE All-World Index after meeting the relevant inclusion requirements, primarily related to share liquidity.
“The renewal of our telecommunications licence for a further 20 years gives us the long-term clarity to plan with confidence,” Al Hassawi said.
“While external conditions remain uncertain, du remains fully committed to delivering for our customers and shareholders, and we are confident in the strength of the UAE’s economy and its prospects for the future.”
The company said it would continue investing in cloud services, data centres and advanced connectivity as demand for digital infrastructure grows across the UAE.