du Delivers Strong Q1 2026 Results with 6.9% Revenue Growth and Record EBITDA Margin

du  has announced its financial results for the first quarter ended 31 March 2026, delivering a strong performance despite volatility in March driven by external geopolitical and economic factors. The company reported continued operational resilience, supported by robust execution across its core mobile, fixed, and ICT businesses.

For Q1 2026, du recorded revenue growth of 6.9% year-on-year to AED 4.1 billion, alongside a record EBITDA margin of 49.5% and a 15.5% increase in net profit to AED 0.8 billion. The company also maintained strong liquidity and financial discipline, underpinned by uninterrupted network operations and solid cash generation.

Operating free cash flow rose by 14.2% to AED 1.7 billion, reflecting improved EBITDA performance and disciplined capital deployment. du’s balance sheet remained strong, with a net cash position and successful refinancing of an AED 2 billion revolving credit facility in April, extending tenor to seven years on improved terms.

Customer and segment performance

du’s mobile subscriber base grew 6.1% year-on-year to 9.7 million customers, driven by strong performance in January and February, while fixed subscribers increased 6.3% to 745,000 customers. Postpaid and prepaid segments both contributed to growth, though March saw moderation in activations due to reduced tourism inflows and softer consumer demand.

Fixed services remained resilient, supported by demand for home wireless solutions and fibre broadband expansion in high-growth residential areas. Enterprise connectivity also performed strongly, driven by SME-focused offerings.

Q1 financial breakdown

Mobile service revenues increased 7.2% to AED 1.8 billion, supported by subscriber growth and a favorable shift toward postpaid customers. Fixed revenues rose 11.1% to AED 1.2 billion, driven by enterprise connectivity and ARPU improvements. Other revenues grew 2.3% to AED 1.1 billion, reflecting ICT expansion and handset sales.

EBITDA increased 11.7% to AED 2.0 billion, supported by mix improvements, cost discipline, and one-off benefits, while being partially offset by roaming pressure and higher handset-related costs. Net profit rose 15.5% year-on-year to AED 0.8 billion.

Capital expenditure stood at AED 386 million, with capital intensity at 9.4%, aligned with du’s ongoing investments in mobile network enhancement, fibre expansion, and data centre development.

Operating free cash flow reached AED 1.7 billion, reinforcing du’s strong cash-generating ability and financial flexibility.

“du started 2026 with strong fundamentals and clear commercial momentum across mobile, fixed, and ICT. We delivered an excellent set of financial results, with revenues up 6.9%, EBITDA up 11.7% and net profit rising 15.5%. Our performance in the first two months of the year reflected the favourable operating environment and the disciplined execution of our strategy. March presented a change in the operating environment, that resulted in significant reduction of tourist inflows and inbound roaming activity, some pressure on gross subscriber additions, and short-term ARPU softness as both consumers and businesses moderated discretionary spending. We also observed shifts in usage patterns toward fixed connectivity as remote working and learning increased. Throughout, our operations remained fully resilient, and our teams delivered uninterrupted service to customers across the UAE following the activation of our business continuity plans. With near-term uncertainty remaining elevated, du continues to adapt to the situation, and manage its business in an agile manner to cope with changing operating environment. As a provider of vital infrastructure, we continue to benefit from a resilient business model supported by strong fundamentals and a solid balance sheet. We continue to monitor business conditions closely, assess and adjust to the evolving situation. We are maintaining our full-year guidance for the time being, as we believe additional clarity and data are required before providing further visibility.”

– Fahad Al Hassawi, CEO, du