By Ed Attwood
Second UAE telco now has 37 percent share of mobile market, net profits more than double year-on-year
The UAE’s second telco, Du, has announced 31 percent growth in revenues and a more than doubling of net profits during the third quarter.
Compared to the second quarter, Du’s net profits before royalty rose by 19 percent.
The company now has just over four million mobile subscribers, with an estimated 37 percent share of the market. Around 159,800 new mobile subscribers signed up to Du’s services in the last quarter.
Du said that the strong results had been due to mobile revenues, which were up 39 percent in comparison to the same quarter last year.
Mobile average revenue per user (ARPU) grew by 4.8 percent, to $29.7m.
On the fixed-line side, Du saw a 44 percent growth in subscribers in the third quarter compared to the same period in 2009, and added 15,500 lines in the previous three months.
The company also said that capital expenditure would total $490m during 2010, with this investment primarily focused on building out mobile infrastructure.
During the last quarter, Du signed a $207m export credit facility to help fund the purchase of Nokia Siemens Networks solutions and services, alongside an additional $255m equipment financing facility with The Export-Import Bank of China.
Du CEO Osman Sultan said the telco had passed a "significant milestone".
“By the end of August we had an estimated 37% market share of active mobile subscribers and expect this to have increased further by the end of the quarter, which is an outstanding achievement in just three years," he said in an emailed statement.
Du - part-owned by Dubai Holding and Mubadala – began operations in 2007.
In October, Sultan told Arabian Business that the firm was aiming for an equal share of the market with former incumbent Etisalat.
monopoly by the etisalat now came an end. ?Thanks du.
du made it a mature market, very creative deals, improving network coverage. We wish that it was in market earlier than 2007
but it's time that du connects with the international community, i.e. allows skype and other services.