du posts 6.2% nine-month revenue rise as licence renewed for 20 years
Emirates Integrated Telecommunications Company, trading as du, reported nine-month revenue of AED 12.3 billion for 2026, a 6.2% year-on-year increase, as the UAE operator credited sustained demand for connectivity and digital services alongside a more stable macroeconomic backdrop. Net profit for the period rose 10.8% to AED 2.4 billion, while EBITDA climbed 9.2% to AED 6.0 billion, pushing the EBITDA margin up 1.3 percentage points to 48.7%.
For the third quarter alone, revenues reached AED 4.1 billion, up 7.1% year-on-year, with growth spread across mobile, fixed and the "Other revenues" category, which includes wholesale, ICT services and handset sales. Q3 net profit rose 7.3% to AED 786 million. Capital expenditure for the quarter increased sharply to AED 647 million from AED 492 million in Q3 2025, lifting capex intensity to 15.6%, primarily reflecting investment in data centre infrastructure and network upgrades. Operating free cash flow edged down 2.3% to AED 1.3 billion as a result.
Licence renewal and index inclusion
Two structural developments distinguished the quarter from a routine earnings update. Du's telecom licence was renewed for a further 20 years, with the royalty regime extended for three years, giving the company long-term regulatory visibility at a time when regional operating conditions remain uncertain. Separately, du was admitted to both the MSCI UAE Standard Index and the FTSE All-World Index after satisfying the relevant liquidity thresholds, a move that widens the pool of passive and institutional capital eligible to hold the stock.
Chief executive Fahad Al Hassawi said the results demonstrated "the resilience of our business and our focus on growing with purpose," adding that investments in data centres, cloud and advanced connectivity were "extending our role beyond traditional connectivity and positioning du at the centre of the UAE's digital economy."
Market context and competitive positioning
Du operates as one of two licensed telcos in the UAE alongside e&, formerly Etisalat, in a market characterised by high smartphone penetration, a predominantly expatriate population, and above-average enterprise demand driven by the country's role as a regional business hub. The competitive dynamic is therefore relatively contained compared with more fragmented markets, though both operators are moving aggressively up the value chain into ICT services, cloud hosting and managed security to offset maturing consumer mobile revenues.
The sharp rise in capex intensity, from 12.7% to 15.6% in a single quarter, signals that du is front-loading investment in infrastructure ahead of anticipated enterprise and government digitisation demand. The UAE government's AI and smart-city programmes, including the national AI strategy and initiatives tied to UAE Vision 2031, represent a structural tailwind for operators with credible data centre and cloud capabilities. Du's mobile subscriber base reached 9.5 million in Q3, with postpaid growing 6.4% year-on-year to 2.0 million, a segment where ARPU is materially higher and churn lower than prepaid. Fixed subscribers rose 5.2% to 756,000, driven by home wireless adoption.
From a regulatory standpoint, the 20-year licence renewal removes one of the more significant near-term uncertainty factors for investors assessing the stock. The extension of the royalty regime, which governs the fee du pays to the UAE government for its operating licence, for three years provides additional cost visibility. Analysts will note, however, that the royalty structure has historically been a meaningful drag on free cash flow and any future renegotiation remains a watch item. With an unleveraged balance sheet and sustained cash generation, du retains financial flexibility to accelerate its infrastructure build or pursue bolt-on acquisitions in adjacent digital services.