UAE telco Du ends earnings slump with flat second-quarter profit

UAE telco Du ends earnings slump with flat second-quarter profit
Du ended rival Etisalat’s domestic monopoly in 2007. (Reuters)
Updated 26 July 2017

UAE telco Du ends earnings slump with flat second-quarter profit

UAE telco Du ends earnings slump with flat second-quarter profit

DUBAI: Du, the second largest telecoms operator in the UAE, halted an earnings slump when it reported a flat second-quarter profit.
Du, which ended rival Etisalat’s domestic monopoly in 2007, made a net profit of Dh446.6 million (SR456 million) in the three months to June 30 compared with Dh445.4 million in the year-earlier period, according to a statement made to the stock exchange.
Second-quarter revenue was Dh3.26 billion, compared with Dh3.07 billion a year ago. Du paid quarterly royalties — or tax — of Dh527.2 million, similar to what it paid in the prior-year period.
The company’s results have been squeezed since late 2014 as growth of the mobile market has been offset by a steady increase in the royalty — or tax — paid to the government.
The telecommunications firm had reported declining year-on-year profits in the previous 10 quarters, according to Reuters data.
SICO Bahrain and EFG Hermes earlier forecast lower quarterly profit for du, at Dh373.2 million and Dh409.3 million, respectively.
In January, the company announced it had acquired a license to operate Virgin Mobile-branded services in the UAE.
Thousands of customers have been signed up to Virgin Mobile-branded services since a low-key launch in the first week of Ramadan, which began in late May.
Du’s mobile customer base rose 1.5 percent to 8.2 million subscribers in the second quarter.