Home / / Du profits up 57.1% in Q2

Du profits up 57.1% in Q2

Telco is entering next phase of its evolution, says CEO Osman Sultan

Du shows increase in revenue and profit in Q2.
Du shows increase in revenue and profit in Q2.

Du, the UAE's second telecom operator, reported a 57.1% increase in second quarter profit before royalties compared with the same period a year earlier.

The company said net income in the first three months of the year increased to AED651 million ($177m) from AED414 million in the same period a year ago.

"There are clear signs that the company is entering the next phase of its evolution," said Osman Sultan, CEO, Du. "Delivering value for our shareholders remains our priority and we will consistently seek to do this through a continued emphasis on driving efficiencies, and a sustained focus on innovation and the introduction of new customer-centric products and services."

Second quarter results saw an increase in the number of subscribers, with post-paid customers accounting for about 80% of the operator's 5.7 million mobile users. The company increased its fixed line subscribers 10.6% in the second quarter to 546,600.

Total combined revenues for the second quarter reached AED2.5bn, an increase of 12.9% year on year from AED2.2bn and 0.2% quarter on quarter from AED2.4 billion.

At the end of July, Du's share of the UAE mobile market stood at 46.5%, according to the company, citing Telecommunications Regulatory Authority date.

In a conference call with journalists Sultan said he expects total revenue of the company for the year to remain at these levels.

He said the company has not as of yet taken a decision as to whether it will bid for a license in Saudi Arabia.

"We are still not interested in going out of the UAE in the traditional model," Sultan said. "Once we know what are the conditions it will be possible."