Du reports fourth consecutive quarterly profit decline

Du, the UAE’s second telecom operator, posted 12.3 per cent decline in its third quarter net profit, as royalty fees, or government tax, weighed on earnings.

The company, which ended Etisalat’s monopoly in 2007, said that net profit was at Dh489.8 million in the three month to September 30. The profit is after du provisioned 16.7 per cent of its net income as tax or royalty fees to the government.

Du had also reported declining profits in the preceding three quarters.

“While overall revenue edged higher to Dh3.05 billion in the third quarter, a 16.7 per cent rise in the amount of royalty paid to the government more than outweighed this, meaning net profit after royalty declined on the year,” said Osman Sultan, du’s chief executive in a statement.

Revenue for the third quarter climbed 0.4 per cent from a year earlier, reaching Dh3.05bn.

Du’s mobile phone subscribers fell by 3.2 per cent in the third quarter to 7.28 million. Meanwhile fixed-line revenue rose 9.8 per cent to Dh656.8m.

Data contributed to 32.9 per cent of mobile revenue during the third quarter, an increase from 7.8 per cent a year earlier.

Last month, du and Etisalat begin competition over fixed voice and broadband services. The two operators said that they will be expanding their services to the areas of the country where each had previously operated exclusively.


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