Du sees Q1 net profit double on customer growth
Net income up to $56m from boom in mobile and fixed line customers
Du, the UAE's second-largest phone operator, more than doubled first quarter profit after the company registered a surge in mobile and fixed-line subscribers.
Net income surged to AED205.8m ($56m) for the quarter, up from AED97m in the year-earlier period, the company said Monday in a statement to Dubai bourse.
Revenue rose to AED2bn against AED1.58bn in the same period a year earlier.
The firm, which now has an estimated 40% share of the UAE mobile market, said it would continue to provision for royalty payments to the government at 50% of its profits until informed of the rate for the year by the federal authority.
The operator paid a 15% royalty fee to the government in 2010.
Chief executive Osman Sultan said the firm had delivered a strong first quarter and secured an uptake in market share.
"Year-on-year growth remains strong and we enter the year in a robust position," he said in a statement to the bourse. "We have continued to attract new customers; indeed, we added more customers than any of the quarters in 2010."
Du said it added 272,000 net active mobile subscribers during the quarter and invested AED 477m in infrastructure. The operator saw a 27.3% rise in fixed line subscribers to 581,500 lines at the quarter-end.
Abu-Dhabi-based Etisalat posted an 8.5% fall in first-quarter profit as a result of investment in infrastructure.