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Sun 1 Nov 2009 08:29 AM

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Du sees huge surge in Q3 profit

UPDATE 2: UAE telecom operator says profit before royalty was nearly 400% up on same period in 2008.

Du sees huge surge in Q3 profit
PROFITS SURGE: Du posted a near 400 percent increase in profit (before royalty) in Q3, compared to the same period in 2008.

UAE phone company Du said on Sunday that third-quarter profit before royalty rose to AED157.1 million ($42.78m), a near 400 percent increase on the same period last year and a 36 percent rise from the previous quarter.

The company added in a statement posted on the Dubai Financial Market that it had 3,139,100 active mobile subscribers at the end of the quarter, up from 2.1 million in the same quarter in 2008.

During the third quarter, Du had 233,200 new net active mobile customers.

Revenues for the quarter totalled AED1,332.9 million, up 25.8 percent compared to Q3 2008.

Revenues for Du’s fixed business, including fixed telephony, TV and Broadband, totalled AED241.6 million from 358,000 lines compared to AED242.6 million in the second quarter and AED211.8 million during the same quarter in 2008. 

The mobile sector provided the strongest revenue with growth of 28.8 percent compared to the same period last year.

Commenting on the results, Ahmad Bin Byat, chairman of Du, said: “We are pleased with the results for the quarter. Again, du has shown that it is the preferred mobile provider in the country with its impressive performance this quarter in terms of its new customer’s additions and its overall financial performance.

“In a challenging economic environment, Du continues to focus on its core business objectives, our customers, by providing continual upgrades to our network infrastructure and product range in order to bring continued customer satisfaction on all interactions with the company.

"Both profit and subscriber number growth is a clear indication that we have a robust business strategy."

Osman Sultan, Du’s CEO, added: “Du has maintained its growth strategy and remains Emirates focused, as well as securing further market share.

“Our vision is to provide superior network capabilities as well as competitive products and services and as such our investment programme for our network capabilities are in line with our strategic capital expenditure program for 2009 where we are on target to invest around AED2 billion and expect to spend a similar amount on Capex during 2010.”

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Ali 10 years ago

"Both profit and subscriber number growth is a clear indication that we have a robust business strategy." No, you have a monopoly. I live in Old Town and had to wait over a month to get phone and internet connected. If I'd had a choice of providers (even old Spyware-using Etisalait) I would have gone to them instead. If your business strategy is to rely on the government protecting your monopoly for certain areas of Dubai then it's hardly anything to be proud of is it?

mabs 10 years ago

I know people who had to wait for one month for etisalat! Same issues in both companies, you should be happy you get it slightly less with du! this aint not UK (7.50 pounds for 8mb connection!)

His Excellency Dr Paul 10 years ago

Tax = "A fee charged ("levied") by a government on a product, income, or activity." Du internet connections for business are around 6 or 7 times the price for an equivalent service in Europe. Sure revenue has to be raised somehow, but a bit of honesty about it wouldn't do any harm. I would also question the logic of piling huge taxes onto the internet. Overseas companies gain great cost and efficiency savings through increased use of the internet. In Dubai you cannot purchase hardly anything online. The high internet costs dent usage and uptake by businesses, which hampers this whole business sector in the UAE.

Ahmed Imlarff 10 years ago

What a relief to see that one of the existing telecom providers was able to make ends meet in Q3. Hopefully the modest 400% increase in profits will just cover the cost of a gold plated rolls royce for each member of the Exec Team. Deep down we are all glad that the governments continued policy of protecting Du and Etisalat from nasty competitors coming into the market to offer dangerous things such as choice and value to those pesky consumers. Congratulations to you all for your outstanding achievements

Harry Barracuda 10 years ago

Perhaps now you can see how much they are struggling to keep their heads above water, you will all stop moaning about them blocking Skype. The poor things have to make a living you know.