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 profits up 57.1% 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."

Follow us to get the most comprehensive IT business news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.