UAE telco du ends second quarter with increased profits
Osman Sultan looks forward to the full commercial launch of Virgin Mobile UAE soon
Emirates Integrated Telecommunications Company ("du") plans to distribute AED 589.3m ($160m) of interim dividends to its shareholders for the first half of 2017 at 13 fils per share.
The second quarter has been good for the company, as it delivered delivered AED 3.26bn ($890m) in revenue, up 6.2% YoY.
Net profit before royalty was AED 974m ($265m) for the period. Net profit after royalty also managed a slight YoY increase of 0.3% in Q2. Revenue has also shown growth over the first six months of the year with a 4.3% increase to AED 6.42bn ($1.8bn).
Osman Sultan, EITC's chief executive officer, said: "EITC has made steady progress in the second quarter of 2017. Our mobile customer base increased 1.5% during Q2 2017 to 8.2 million customers, up from 8.1 million in Q2 2016. This was largely due to our strategy of focusing increasingly on attracting and retaining higher quality customers, with solid growth in postpaid customer additions."
Sultan however added that challenging market conditions continue to impact business, with pressure on mobile rates and data monetisation.
"Looking towards a smart future, we have made further investments into Smart Dubai, the Virgin Mobile brand and adjacent markets. We will continue to invest in the future generation capacity of the business; EITC is a digital enabler and will be able to create new revenue opportunity as digital transformation for both consumers and enterprises opens up new markets," Sultan added.
He added that the initial feedback from the product testing of VM UAE has been really good. "We look forward to the full commercial launch of the Virgin Mobile brand in the UAE soon, and with it, bringing a fully digital and premium customer experience."