du announces record third quarter results
The company has seen a 31% revenue increase year on year
Emirates Integrated Telecommunications Company PJSC (du) has reported a record company revenue increase for Q3 2010. Its profits are up 31% year on year to AED1.74 billion ($473,766 million). This figure is a 2% increase on Q2 2010.
The company continued to add subscribers and has seen 159,800 new net active mobile subscribers during the quarter, taking the total at quarter end to 4,080,900.
"I am delighted to be able to say we have passed a significant milestone, with our active mobile subscriber base growing beyond four million. By the end of August we had an estimated 37% market share of active mobile subscribers and expect this to have increased further by the end of the quarter, which is an outstanding achievement in just three years," said Osman Sultan, du's CEO.
Post-paid active mobile subscribers also increased with 15,300 added during the quarter bringing the total to 209,400, up 91% as compared to Q3 09 and 8% compared to Q2 10. This figure is equal to 5% of the total mobile subscriber base.
du has seen massive growth in its fixed line subscribers according to the results, with a 44% surge in fixed line subscribers from 358,000 lines in Q3 09 to 515,400 lines in Q3 10, with 15,500 lines added during the quarter.
The company's gross margin also shows a 29% increase year on year to AED1,126 billion ($306.899 million), compared to Q3 09 at AED876 million ($238.692 million) and remained flat quarter on quarter. The Q2 10 margin was AED1,127 million($307.08 million). EBITDA grew 76% versus Q3 09 to AED523 million ($142.506 million) and 15% compared to last quarter at AED 454 million($123.705 million).
Net profit before royalty increased year on year to AED326 million ($88.828 million) versus AED157 million ($42.779 million) in Q3 09, representing a 19% increase over the previous quarter of AED275 million ($74.931 million).
du's capital expenditure programme is expected to reach AED1.8 billion ($490.463 million) in 2010, with AED161 million ($43.869 million) accounted for during Q3 2010. The investments are primarily focused on building out the mobile infrastructure.
"During the third quarter, we continued to raise capital to fund our infrastructure build-out programme, announcing a $207 million export credit facility to fund the purchase of Nokia Siemens Networks solutions and services. So far this year we have raised around $1 billion, including our rights issue and the recently announced $255 million financing deal with The Export-Import Bank of China," said Sultan.
du, launched their mobile telecommunications services, pay TV and internet in February 2007 across the UAE, their fixed line service began in July 2007. The company is 39.5% owned by Emirates Investment Authority, 19.75% by Mubadala Development Company PJSC, 19.5% by Emirates Communications and Technology LLC and the remaining stake by public shareholders.