By Sarah Townsend
UAE telco reports slight rise in net profit and 6.2 percent jump in revenues for Q2
The UAE’s second telecoms operator Du has ended its earnings slump – reporting flat profits and a 6.2 percent hike in revenues in the second quarter of 2017.
Emirates Integrated Telecommunications Company (Du) said on Tuesday it had increased revenue to AED3.26 billion ($890 million) in the second quarter, up from AED3.07 billion ($840 million) in the previous quarter.
It said it plans to distribute AED589.3 million ($160.3 million) of interim dividends to shareholders for the first half of the year at 13 fils per share, subject to company approval in September.
The telco made a net profit of 446.6 million dirhams ($121.6 million) in the three months to June 30, a 0.3 percent rise compared to 445.4 million dirhams in the year-earlier period. Net profit before royalty was AED974 million for the quarter.
Meanwhile the telco’s mobile customer base increased 1.5 percent during the quarter to 8.2 million customers, up from 8.1 million in the year-earlier period, du said.
The slight profit rise ends an earnings dip for Du, which reported a 20 percent fall in fourth-quarter 2016 net profit in February.
It attributed the rise to growth in handset sales, wholesale and fixed revenues. It also cited the introduction of the Virgin Mobile brand as a highlight for the second quarter.
Du CEO Osman Sultan said: “Despite a steady performance during the quarter and the first half of the year, EITC continues to be impacted by challenging market conditions, with pressure on mobile rates and data monetisation.
“Consequently, EBITDA and net profit stand at the same level as the second quarter of 2016.
“Looking towards a smart future, we have made further investments into Smart Dubai, the Virgin Mobile brand and adjacent markets.
“We will continue to invest in the future generation capacity of the business; EITC is a digital enabler and will be able to create new revenue opportunity as digital transformation for both consumers and enterprises opens up new markets.”For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.