By Bernd Debusmann Jr
Falling revenue and a decline in mobile subscriptions were cited as reasons for the 13.5% Q3 drop
The Emirates Integrated Telecommunications Company – more popularly known as Du – saw its net profits fall 13.5 percent in the third quarter amid falling revenue and mobile subscriptions, the company has announced.
In a statement released on Tuesday, Du said that net profits after royalty for the quarter ending on September 30 fell to AED 381 million, while total revenue over the same time period dropped to AED 3 billion, a 7.9 percent decrease from the previous year.
Additionally, over Q3, the number of fixed-line customers grew 1.5 percent to 771,000. Mobile subscribers dropped 10.6 percent to more than 7.7 million.
However, EITC CEO Osman Sultan reported that the company saw a 3.7 growth in like-for like profit after royalty, reaching AED 1.29 billion.
“We were able to achieve this result despite several challenges in our market where certain of our business lines which reached maturity are subject to pressure on their top line,” he said.
Net profit after royalties fell 7.9 percent to AED 1.29 billion over the nine-month period, year-on-year. Revenue also fell 6.2 percent to AED 9.4 billion in the same time period.
Du has also accelerated the deployment of its network, particularly in 5G network.
“Our Capex (capital expenditures) for the first 9-month period increased 82 percent compared to the same period last year to reach AED 799 million, almost double the capital intensity of the business,” Sultan said.
“These continuous investments confirm our commitment to provide our customers with the latest technologies and products and our regular efforts towards improving customer experience,” he added.
In early 2020, Sultan will be replaced by Johan Dennelind, the CEO of Sweden-based Telia.