Emirates Integrated Telecommunications Company PJSC (“EITC”) published today its financial results for the second quarter of 2020. EITC reported for the first half of the year (H1 2020) Revenues of AED 5.66 billion and a Net Income of AED 570 million.
The Board of Directors approved the distribution to shareholders of an interim dividend of AED 589 million, equivalent to an interim dividend per share of 0.13 AED.
Q2 and H1 2020 Financial Results Analysis
Due to the general lockdown of activity in the UAE during Q2 2020, EITC’s financial performance was negatively impacted from the limitation of sales activity, the change in customer behaviour and the strong reduction of tourism and trade activities.
EITC reported in H1 2020 total revenues of AED 5.66 billion driven by a contraction in mobile revenues and other revenues, partially offset by the continued growth in fixed revenues.
Q2 2020 mobile revenues were under pressure due to the movement restrictions across the country, which led to an erosion of the base as a result of lower gross additions and lagged churn and a shift in customer behaviour from prepaid mobile usage to fixed usage as companies implemented work from home initiatives. Therefore, H1 mobile revenues declined to AED 2.81 billion, coming mainly from the significant reduction in the prepaid customer base and the prepaid usage.
H1 2020 fixed revenues continued to grow at a rate of 4.8% year-on-year to AED 1.29 billion, reflecting a healthy increase in the subscriber base fuelled by the higher home connectivity needs during the quarter.