Du edges closer to parity with rival Etisalat

Du carves out 44% market share by end of Q2

Tags: Emirates Integrated Telecommunications Company
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Du edges closer to parity with rival Etisalat Du has gained market share from rival Etisalat. (ITP Images)
By  Ed Attwood Published  August 3, 2011

The UAE's second telco, Du, has made up further ground on rival Etisalat by winning a 44% market share by the end of the second quarter, the company said Wednesday.

Du announced that profits before royalty rose 51% to $56.4m, while revenues rose 28% to $591m, the company said in a statement to Dubai bourse.

The telco added a further 171,000 new mobile customers in the quarter, taking its subscriber numbers to around 4,775,900 active users.

Mobile revenues were up by 32% against the same period last year, helped by post-paid customers, who contributed 44% of growth in that segment. Mobile average revenue per user (ARPU) rose to $30 from $32.

"Further testament to the strength of our offering is the fact that more than a quarter of the growth in mobile revenue can be attributed to an increase in ARPU, driven by increased usage by our customers," said CEO Osman Sultan, in a bourse statement.

The Du results will put further pressure on competitor Etisalat, which saw its net profit drop by 14.9% in the second quarter, missing analysts' forecasts.

Etisalat said it had 7.5m mobile subscribers across its 18-country footprint at the end of the second quarter, up by 0.9% on the previous quarter.

The country's telecoms regulator said last month that business and residential customers would be able to choose between du and Etisalat for their fixed line and broadband services before the end of the year.

Both du and Etisalat already offer fixed-line and broadband services in the UAE, but not in the same districts.

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