The UAE's second largest telecommunications operator, du, reported on July 30 a 57.1 percent jump in net profit for the second quarter to June on a rising customer base and falling operating costs.
The company, which began operations in 2007, said its net profit rose to 651 million dirhams ($177.4 million) compared to 414 million dirhams ($112 million). The net profit figure for Q2 to June was before deducting a 50 percent standard royalty fee. It said revenues during the period were up 12.9 percent to 2.452 billion dirhams ($668.1 million).
The company's mobile customers grew 20 percent to 5.733 million in the said period, compared with 4.776 million in the corresponding period of last year.
But the growth in its fixed line customers, including Internet and cable television, was at 10.6 percent to 547,000, it added.
Operating expenses dropped to 733 million dirhams ($199.7 million), or were at 29.9 percent of revenue, down from 35.2 percent of earnings in the corresponding period last year. "The second quarter remained strong for du, with continued healthy customer additions, particularly in the high-value post-paid segment, which now represents nearly eight percent of our mobile customer base," said Osman Sultan, du's chief executive officer. The firm is 39.5 percent-owned by the UAE federal government, 20.075 percent by Abu Dhabi's Mubadala Development Company, 19.5 percent by Emirates Communications and Technology Company, while the rest is held by public shareholders.
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