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Emirates Integrated Telecommunications, the holding company of telecom services provider Du, is set to lure more investors following its decision to increase the foreign ownership limit in the firm.
The company reported on Tuesday that it posted a 24.1 percent year-over-year increase in net income for 2020 and 1.9 percent quarterly increase in revenues for the fourth quarter of the same year.
Late last month, Du confirmed that the board of directors had resolved to allow foreigners, whether individual or legal entities, to own shares in the company up to 49 percent of its capital.
“This is an important development in our corporate journey, and we are delighted to offer all qualified investors the opportunity to invest in our company, and be a part of our success and journey going forward,” Mohamed Al Hussaini, chairman of EITC said on Tuesday.
The board has also recommended the distribution of dividend to shareholders for 2020 at 28 fils per share.
2020 performance
Looking back, AlHussaini said, the past year had been a challenging period for businesses in the country and abroad. However, he said EITC managed to overcome the difficulties and proved that its business model is solid and more resilient compared to “many other industries”.
“EITC has been able to navigate in a turbulent environment and ensure the efficient provision of telecommunication services, vital to the economy and the community especially in these difficult times,” noted Al Hussaini.
He said the company remains committed to invest in future technologies, to further develop and modernise the country’s infrastructure.
Last year, the company invested a total of 1.87 billion dirhams ($509 million), the highest in five years, to enhance its network and continue its 5G rollout.
Positive momentum
According to Fahad Al Hassawi, acting CEO of EITC, the company saw a positive momentum in its business in the second half of 2020, as businesses reopened following the lockdown.
“We reported two consecutive quarters of positive revenue growth in the third and fourth quarters of 2020, respectively, and reported a healthy net income of 1.44 billion for the full year 2020,” said Al Hassawi.
“Our fixed revenues grew by 3 percent year-over-year to 2.57 billion in 2020, supported by a 7.4 percent increase in our fixed subscriber base during the same time period, demonstrating our competitive strength and ability to gain market share during this challenging period.”
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
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