du posts records revenues for Q2 10
UAE operator reports strong growth in mobile and fixed line subscriptions
UAE telecoms operator du has posted record revenues for the second quarter of 2010, with a 30% year on year increase to AED 1.7 billion ($462 million).
The operator reported its highest ever quarterly net profit before royalties, at AED 275 million, ($74.8 million), a 42% increase from the first quarter of the year, with growth across fixed line and mobile subscriptions.
Ahmad Bin Byat, chairman of du, commented: "This quarter marks an important milestone for du. The success of our recent rights issue, raising AED 1 billion to fund our growth plans, provided a clear message from our shareholder base that the management team and the strategy in place has strong ongoing support. The company's enhanced capital structure will also provide us with access to a wider range of funding options to support our growth plans into the future, building a competitive, mature telecommunications business. We see a great deal of opportunity and are now in an even stronger position to build on the successes we have achieved to date."
The company said that it added 182,100 net active mobile subscribers in Q2 10, taking its total to 3,921,100, nearly one third of the UAE mobile market.
Mobile ARPU remained stable at AED 111 compared to 104 AED in the second quarter of last year.
du's fixed line subscriber base also grew by 43,200 lines during the quarter, to 499,900, while revenues from fixed business, including telephony, TV and broadband increased 10% during the quarter to AED 290 million.
Osman Sultan, du's CEO, said: "We continue to reach new heights every quarter and this quarter is no exception having achieved record revenues and profitability. We are also continuing to build on our market share position, adding another 182,100 net active mobile subscribers during the quarter, bringing our total active mobile subscriber base to nearly 4 million.
"We are also buoyed by the recent announcement by the Telecommunications Regulatory Authority (‘TRA') regarding the impending infrastructure sharing in the UAE, which we believe bodes well for the market overall and for us in particular. We believe this is a great opportunity for the consumers first and the entire telecommunications sector in general in the long term, giving du access to a much broader market, and offering consumers a greater choice of telecommunications products and services. We are confident that our fixed line business, which remains one of the most developed and technically advanced in the region, will enable us to acquire further market share, supported by the innovative services we have consistently endeavoured to provide our customers, such as the recent introduction of recordable set-top boxes for our televisions service and our current video on demand offer," he added.
In a telephone conference with media, Sultan said that the company does not have any plans to expand into markets outside the UAE, citing overly-crowded markets, but that du is looking to develop other services outside of the traditional telecoms sphere through its wholly-owned investment vehicle, to target areas such as web services.