UAE telco Du reports $262.7 million in H1 profits

Revenue rose 4 percent to $1.75 billion
UAE telco Du reports $262.7 million in H1 profits
Osman Sultan, EITC's chief executive officer.
By Bernd Debusmann Jr
Thu 19 Jul 2018 12:28 PM

The Emirates Integrated Telecommunications Company PJSC (Du) profits after royalty rose 18.8 percent to AED 965 million ($262.7 million) in the first half of 2018, the company announced on Thursday.

In a statement, the company noted that revenue rose 4 percent to AED 6.68 billion ($1.82 billion), compared to AED 6.42 billion ($1.75 billion).

Additionally, the company announced that that its board of directors is proposing to distribute AED 589 million of interim dividends to its shareholders for the first half of 2018, at 13 fils per share, subject to approval at a general meeting in September 2018.

In the first quarter of 2018, the company reported a one-off reversal related to regulatory costs. Excluding the impact of the cost reversal, normalised net profit after royalty increased by 4.4 percent in H1 2018 compared to the same time period in 2017.

“Our company had a strong second quarter and a solid first half of the year in 2018, with growth across all our key indicators,” said EITC chairman Mohamed Al Hussaini. “Despite a maturing telecom market, we are pleased to deliver excellent growth in revenue and net profit.”

Osman Sultan, EITC's chief executive officer, noted that earnings before interest, tax, depreciation and amortisation (EBITDA) had “excellent growth” of 4.7 percent to AED 1.41 billion ($383 million) in the second quarter of the year, outperforming the 2.9 percent growth in revenues in that same time.

“We are pleased to see the benefits of our efficiency programme positively impacting our profitability,” he said.

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