du reports resilient Q2 2026 results as H1 net profit rises to AED 1.632bn
Du reports Q2 2026 results with revenue and service growth, stronger margins and an interim dividend after H1 net profit of AED 1.632 billion.
Strong second-quarter financials
Du reported solid Q2 2026 results, with group revenue up 4.6% year-on-year and service revenue rising 6.7%, underscoring the resilience of its operating model. EBITDA increased by 9.2%, driving an expanded EBITDA margin of 48.8%, two percentage points higher than a year earlier. The company said the quarterly performance reflected disciplined cost management and sustained demand across core services. Management highlighted that these results were achieved despite operational headwinds linked to regional developments during the period.
First-half profit and interim dividend
For the first half of fiscal 2026, du recorded a net profit of AED 1.632 billion, up from AED 1.449 billion in the same period last year, representing a 12.6% year-on-year increase. The board approved an interim cash dividend of AED 0.26 per share for H1, an increase of 8.3% versus the prior year. Executives framed the payout as consistent with the company’s focus on delivering sustainable shareholder value while maintaining investment momentum. The dividend decision follows the stronger margin performance and the company’s continued emphasis on capital allocation discipline.
Quarterly net profit and margin expansion
Net income for Q2 rose 9.8% year-on-year to AED 798 million, a result the company said illustrates operational flexibility and strict cost controls. The expansion in EBITDA margin to 48.8% was driven by a combination of higher service revenues and efficiency measures across the business. Du’s management attributed the margin gains to targeted initiatives that improved productivity and optimized operating expenses. These improvements helped absorb pressure from external factors while preserving investment in network quality.
Subscriber growth supports revenue mix
Du sustained customer-base growth during the quarter, with mobile subscribers increasing by 1.6% and fixed-line subscribers expanding by 5.5%. The growth in subscribers, coupled with enhanced customer engagement programs, contributed to the 6.7% rise in service revenue. Company statements indicate that product launches and tailored service offerings played a role in bolstering uptake across consumer and business segments. Management emphasized that diversified revenue streams and rising ARPU in select segments supported the top-line momentum.
Leadership perspective and strategic priorities
Chairman Malik Sultan Al Malik said the results reaffirm du’s flexible business model and operational execution capability despite regional uncertainties. He noted the company’s focus on long-term strategy, digital transformation, and continued investment in digital infrastructure. CEO Fahd Al Hasawi pointed to disciplined strategy execution and a pipeline of services tailored to customer needs as drivers of the quarter’s outcomes. Both executives stressed the importance of sustaining investments in network quality and customer-centric services to support future growth.
Investment in digital infrastructure and execution
Du signalled a continued commitment to strengthening its digital and network infrastructure as part of a multi-year investment programme. The company said it accelerated implementation of planned projects during H1, and diversified its investment portfolio to support service innovation. Management highlighted that ongoing capex is balanced with operational efficiency measures to preserve cash flow while upgrading capacity. This approach aims to maintain service quality and to enable new offerings for enterprise and consumer markets.
Implications for shareholders and market positioning
The combination of revenue growth, margin expansion and a raised interim dividend reinforces du’s shareholder proposition in a competitive UAE telecom market. The results are likely to be viewed positively by investors focused on yield and steady operational improvement. Analysts and market participants will watch how the company translates infrastructure investments into revenue upside and whether subscriber trends sustain. Du’s reiterated emphasis on efficiency and targeted spending should be central to its ability to navigate near-term volatility.
Du’s Q2 2026 performance leaves it positioned to pursue strategic priorities while returning cash to shareholders, with the company signalling that operational discipline and continued investment in digital capabilities will remain priorities through the remainder of the year.
