du Net Profit Surges 12.6% to AED 1.63 Billion in First Half

du’s First-Half Revenue and Profit Jump

Emirates Integrated Telecommunications Company (du) reported net profit of AED 1.632 billion (USD 444.4 million) for the first half of 2026, a 12.6% increase year-on-year. The result was driven by a 5.8% rise in total revenue to AED 8.198 billion, led by a 7.7% jump in service revenues which reached AED 6.029 billion.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 10.5% to AED 4.032 billion, pushing the EBITDA margin up 2.1 percentage points to 49.2%. The second quarter alone saw net profit climb 9.8% to AED 798 million on revenues of AED 4.083 billion, with the quarterly margin expanding to 48.8% from 46.8% a year earlier.

Chairman Malek Sultan Al Malek said the results “once again affirmed the resilience of its business model and its ability to execute efficiently despite regional developments.” CEO Fahad Al Hassawi highlighted “high levels of discipline and commitment in executing the business strategy,” noting growth in both mobile and fixed subscriber bases, and progress on strategic priorities including accelerated investments in cloud computing, artificial intelligence and data centres.

Why du’s Margins Expanded and What Its Digital Pivot Means

Operational Discipline Driving Margin Gains

The 2.1-point margin improvement in the first half – even as service revenues grew solidly – points to tight cost control and operational efficiencies. While the company did not detail specific cost items, the sustained rise in EBITDA margin suggests that du is extracting more profit from each dirham of revenue, likely benefiting from scale and digitisation of its own processes.

A Strategic Shift Toward Digital Infrastructure

CEO Al Hassawi’s explicit mention of accelerating investments in cloud, AI and data centres signals a deliberate pivot beyond traditional connectivity. For an integrated telecom operator in a mature market like the UAE, such moves can open new revenue streams in enterprise digital services, potentially reducing reliance on top-line growth from subscriber additions alone. The question now is whether these investments will show clear returns in the next 12–18 months without pressuring margins.

Service Revenue as the Main Engine

With service revenues growing nearly 8% and accounting for almost three-quarters of total revenue, du is strengthening its core business even as it bets on new technologies. The divergence between service growth (7.7%) and other revenues – which include handset sales and one-off items – indicates that the underlying recurring business is healthy. This mix bodes well for future earnings predictability.

What du’s Strong Half-Year Means for Investors and the Market

• Monitor margin sustainability: The 49.2% H1 margin is a record level. Investors should watch whether du can maintain this pace in H2 as it scales up capex for cloud and data centres, which typically carry lower initial returns.
• Balance sheet strength supports the digital push: Strong cash generation from the core telecom business provides the financial headroom to fund strategic investments without straining leverage. The next test is whether the company can convert this spending into contracted enterprise revenue.
• Enterprise segment as a growth catalyst: Du’s explicit focus on AI and cloud services positions it to capture a slice of the UAE’s growing digital transformation budgets. Sector analysts should look for any disclosures on order books or partnership milestones that quantify this opportunity.