Du’s 2010 revenue up by 32%
Company now commands market share of almost 40%, according to CEO
The UAE's second telecom operator, Du, posted positive results for the full year 2010, with the company now claiming a market share of almost 40%.
Du's revenues for 2010 increased by 32% compared with 2009, to pass AED7 billion ($1.9 billion), while net profit increased by 132% compared to the previous year, reaching AED1.2 billion.
Du added some 856,000 mobile customers during 2010, taking the total at to 4.3 million. Post paid mobile customers on Du's network grew by 89% in 2010 to reach 260,000, representing 6% of the customer base.
The rise in postpaid subscribers may have contributed to a rise in mobile ARPU, which grew to AED125 in Q4 2010, up from AED112 during the fourth quarter of 2009.
Du also made strong progress in the fixed-line sector, with revenues increased 21% year on year to AED1.1 billion compared to AED970 million in 2009.
Net revenues for Du’s fixed line business, including fixed telephony, TV and broadband, amounted to AED1.1 billion for the full year 2010, a 23% year on year increase compared with 2009, and the company now has some 561,000 fixed lines.
Osman Sultan, CEO, Du, said: "Our financial results exceeded expectations and across the business our people, processes, products and services delivered on all fronts. In addition to record revenue growth we achieved company-wide operational efficiencies, while maintaining ongoing investment in our network.
"Our ongoing efforts, to provide innovative products and services that directly address the communications needs of individuals and businesses, saw us achieve record revenues of AED7.1 billion in 2010. This equates to an annual growth of 32%, one of the highest levels for the telecom sector in the entire region. We now have a market share of almost 40% in the UAE, an incredible feat in just four years of operation."
Du's 2010 results contrasted those of UAE incumbent Etisalat. Etisalat's group net revenues for 2010 grew by just 2% to reach AED 31.9 billion, while its net profits declined by 14% to AED 7.6 billion, compared to AED 8.8 billion in 2009.