Dubai's Du telecom Q4 loss narrows

UAE's second telecom operator results show rising number of mobile users boosted revenue.

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By  Ola Galal Published  February 14, 2008

The UAE's second telecom operator Du's fourth-quarter net loss narrowed from the year-earlier period as a rising number of mobile users boosted revenue.

The number of Du mobile users reached 1.5 million, the company said, compared with 880,000 mobile users at the end of September.

Du made a loss of 146.65 million dirhams ($39.92 million) in the three months ended December 31, according to Reuters' calculations, beating analysts' forecasts. A year ago, the company made a loss of 280.28 million dirhams.

Du posted a loss of 885.27 million dirhams in 2007, it said in a statement on the Dubai bourse website. The company did not disclose quarterly data, which Reuters calculated based on earlier financial data. The company posted a loss of 608.92 million dirhams in 2006.

Annual revenue came in at 1.54 billion dirhams, while cost of sales was 678.9 million dirhams in 2007, Du said in the statement. From December 28 2005, to December 31 2006 the company posted revenue of 434.03 million dirhams.

Analysts' forecasts for Du's fourth-quarter losses ranged from 179.58 million dirhams and 219 million dirhams in a Reuters survey in December. The average was for a loss of 204.45 million dirhams.

The company posted a loss of 738.62 million dirhams in the first nine months of 2007, according to financial statements posted on the stock market regulator's website.

The company's shares have risen more than 13% this year, after losing more than 12% last year. (Reuters)

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