du 2Q26 conf call takeaways - Cautious tone with limited visibility; we keep our below-cons estimates unchanged and remain Neutral.

研报英文原文证据摘录

du 2Q26 conf call takeaways - Cautious tone with limited visibility; we keep our below-cons estimates unchanged and remain Neutral.

J P M O R G A N CEEMEA Equity Research

24 July 2026

du

2Q26 conf call takeaways - Cautious tone with limited Neutral

visibility; we keep our below-cons estimates unchanged DU.DU, DU UH

and remain Neutral. Price (23 Jul 26):Dh12.10

Price Target (Dec-27):Dh10.60

du hosted its 2Q26 earnings call yesterday, after announcing results Wed evening MENA TMT

AC(First Take here). With the presentation also released, FY26 revenue growth Karin So

guidance was downgraded to 4-6% (vs. 5-7% previously) while the EBITDA (971) 4561-2090

margin guidance was maintained at 46-47%, implying a LSD% cut to FY26 karin.so@jpmorgan.com

EBITDA consensus at the mid-point. Overall, we leave our estimates unchanged J.P. Morgan Securities plc

and remain below consensus at 4% FY26 revenue growth and 46.2% EBITDA

margin, reflecting a mixed takeaway from the call with limited visibility on the Style Exposure

operating backdrop (and therefore read-across from 2Q service rev strength)

despite resilient momentum in postpaid uptake and enterprise. With ongoing

headwinds on both the top- and bottom-line and our 4% growth estimate factoring

in a broadly flat% in total subscribers by 4Q26 vs. 1Q26 (implying a rebound of

4% vs. 2Q26) and stable ARPU q/q, we see risks to consensus earnings still skewed

to the downside. That said, the potential upcoming MSCI inclusion in Aug’26 (our

index team estimates passive flows of ~33x ADTV) and FTSE inclusion in Sep’26

should provide downside support for the shares, and we remain Neutral.

• Key Conference Call Takeaways: (1) One-offs / margins. Excluding one- Recent Research Publication