Du sales quadruple, subscribers up
UAE telco sees revenues surge 304.2%, makes net loss of $65.88mn in second full quarter as operator.
Dubai-based Du, the UAE's second telecom company, said revenue quadrupled as mobile phone customers grew almost 60% in the three-month period and it sold more fixed-line telephones.
Du said it made net loss of 241.94 million dirhams ($65.88 million) in its second full quarter as a mobile phone provider.
The loss was smaller than the 346 million dirham forecast of MacSharaf Securities in a Reuters net profit survey last month.
Du started a mobile phone network in February, ending the monopoly of Etisalat and had more than 880,000 mobile phone subscribers at the end of September, compared with 553,000 at the end of June.
Revenues surged 304.2% in the third quarter to 412 million dirhams, Du said in a statement.
The 327,000 net addition of mobile phone users boosted revenues, along with sales of fixed-line, internet and television packages, Du said.
"The increase in revenue arises predominately from the continuing success in acquiring new mobile phone customers and servicing the existing customer base," Du said in a statement.
Du said its capital expenditure in the nine months ended September 30 was 1.29 billion dirhams as it invested in expanding its mobile phone network.
Of the 20% of Du's shares held by the public, foreign investors are allowed to own up to 22%. Shares of Du are down more than 22% this year. - Reuters