Emirates Integrated Telecommunications Company, better known as du, has reported a 33 per cent increase in its 2023 net profit on the back of record revenue amid the introduction of generative artificial intelligence in its operations.
Net profit attributable to shareholders of the telecoms operator in the 12 months ended December 31, 2023, stood at Dh1.65 billion ($449.2 million), du said on Tuesday in a regulatory filing to the Dubai Financial Market, where its shares are traded.
Revenue increased by about 7 per cent annually to Dh13.64 billion, from Dh12.75 billion a year earlier, “highlighting sustained demand for mobile services, and strong growth in postpaid and fixed services”, the company said.
“The robust macroeconomic environment and our strong commercial momentum [have] enabled us to achieve significant milestones and excellent financial results,” its chairman Malek Al Malek said.
The company's board has recommended an increase of 41.7 per cent to du's full-year dividend, taking it to Dh0.34 per share, out of which 13 fils a share was paid out in August as an interim dividend.
This will be equivalent to a 100 per cent distribution of net profit “after appropriation for statutory reserves”, Mr Al Malek said.
Revenue from the company's mobile services segment rose by 6.2 per cent annually to Dh6.1 billion while fixed services revenue grew by 8.6 per cent to Dh3.78 billion.
Other revenue increased by 6.4 per cent to Dh3.77 billion.
Full-year earnings before interest, taxes, depreciation and amortisation jumped 12.8 per cent to Dh5.8 billion, reflecting “top-line growth combined with margin expansion and disciplined cost management”.
For the fourth quarter of 2023, du's net profit soared 38.5 per cent year on year to Dh396 million, as revenue climbed by 7.3 per cent to Dh3.56 billion.
The Dubai-based telecoms operator plans to maintain its strategic course, “doubling up” on key segments as it works to secure another record financial year by the end of 2024, chief executive Fahad Al Hassawi told The National in an interview on Tuesday.
“We don't see a lot of deviation from our strategy … and it's paying off. The results are showing how we are able to extract value, focusing on the right segments,” he said.
“We continue to extract value from almost all our segments, especially in consumer and enterprise, and we are doubling up on the premium consumer segment.”
Du's share price settled unchanged on Tuesday at Dh5.80 before its earnings release.
The company plans to maintain its capital expenditure intensity and expects “excellent results to continue in 2024", Mr Al Hassawi said.
Du has been stepping up efforts to grow its customer base and boosting its services to compete in a telecoms environment in which new technology is being integrated as consumers seek faster connectivity on the go.
At last year's Gitex Global in Dubai, Mr Al Hassawi told The National that du was working with major technology companies to help push generative AI into mainstream consumer services.
On Tuesday, he said du had started implementing the popular technology “within the company”, helping “serve our customers and improve the efficiency of our operations”.
Du is “extending these capabilities to our customers”, said Mr Al Hassawi without elaborating.
The company is working with top AI players, including Microsoft, the biggest backer of ChatGPT creator OpenAI.
“AI will drastically change telecoms. That will change the way we serve customers [and] pre-empt needed maintenance or faults in our system by being able to do a lot of proactive actions before even the customer feels the issue,” he said.
“It's definitely doing a major change … and we expect customer behaviour as well to change, in the way they consume our product and our services. AI is one of the biggest transformations and changes in the market.”
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Winners
Best Men's Player of the Year: Kylian Mbappe (PSG)
Maradona Award for Best Goal Scorer of the Year: Robert Lewandowski (Bayern Munich)
TikTok Fans’ Player of the Year: Robert Lewandowski
Top Goal Scorer of All Time: Cristiano Ronaldo (Manchester United)
Best Women's Player of the Year: Alexia Putellas (Barcelona)
Best Men's Club of the Year: Chelsea
Best Women's Club of the Year: Barcelona
Best Defender of the Year: Leonardo Bonucci (Juventus/Italy)
Best Goalkeeper of the Year: Gianluigi Donnarumma (PSG/Italy)
Best Coach of the Year: Roberto Mancini (Italy)
Best National Team of the Year: Italy
Best Agent of the Year: Federico Pastorello
Best Sporting Director of the Year: Txiki Begiristain (Manchester City)
Player Career Award: Ronaldinho
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
UAE currency: the story behind the money in your pockets
