We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 1 Mar 2016 11:31 AM

Font Size

- Aa +

Dubai's du says net profit cut by higher royalty payments

UAE’s second largest telco proposes higher dividend

Dubai's du says net profit cut by higher royalty payments

Du, the UAE’s second biggest telecommunications operator, said on Tuesday its board had proposed an annual dividend of 43 fils per share, and that its net profit for the year had been cut by higher royalty payments to the government.

The firm, which ended rival Etisalat's domestic monopoly in 2007, paid a dividend of 32 fils for 2014.

In mid-February, the company reported a 10.1 percent fall in net profit for the fourth quarter of 2015.

"An increasingly competitive environment saw total revenue edge lower in the fourth quarter and a significant 30.1 percent rise in the amount of royalty paid to the government meant net profit after royalty declined on the year," said Osman Sultan, chief executive of the company.

For the whole of 2015, royalties rose 20.6 percent from the previous year to 1.92 billion dirhams ($523 million).

Arabian Business: why we're going behind a paywall

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.