Dubai-based telecommunications giant Du said on Friday that the federal royalty, or tax, it pays to the government will remain at the same level for the next three years.
In agreement with the UAE Ministry of Finance, the annual federal royalty calculation mechanism for the period 2022-2024 will be maintained at 15 percent of the company’s revenues plus 30 percent of profit, both generated from UAE operations, Du said in a filing to Dubai Financial Market.
Emirates Integrated Telecommunications Company, the parent company of Du, reported a 7.1 percent year-on-year drop in net profits for the third quarter of last year, the latest available.
The results revealed a net profit of AED283 million ($77.1m), down from the AED305m ($83m) posted for Q3 in 2020 while revenues grew 6.9 percent to AED2.9 billion based on “sustained demand for broadband services and 5G handsets”.
Abu Dhabi-based Etisalat Group, which also pays the federal royalty, announced a two percent year-on-year increase in consolidated revenues for the third quarter of the year.
Revenues reached AED13.3 billion in Q3 while consolidated net profit after federal royalty hit AED2.4 billion, a one percent increase compared to the third quarter of 2020.
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