Du Q2 revenue, net profit soar

27 Jul 2009

UAE telecoms operator Du has posted its fiscal results for the three months ended 30 June 2009, recording a quarterly revenue of AED1.3 billion (USD354 million), up 44% year-on-year. The figure also represents a 12% rise compared with the revenue generated in Q1 2009. Revenue growth was seen across the business and was boosted in particular by the continued increase in mobile subscribers and a strong performance from the wholesale business. Meanwhile, the telco’s earnings before interest, tax, depreciation and amortisation (EBITDA) soared to AED242 million in the second quarter of 2009, compared to just AED29 million in the same period of 2008, and up 52% from the AED159 million in Q1 2009. Net profit (before royalty) for the quarter surpassed AED100 million for the first time reaching AED115 million, more than double the AED47 million achieved in the first three months of 2009 and compared to a loss of AED44 million in Q2 2008. Du’s CAPEX is anticipated to exceed AED2 billion in 2009, with AED404.5 million accounted for during Q2 2009, bringing year to date expenditure to AED1.04 billion.

The company’s active mobile subscriber base increased to 2.9 million in the second quarter of 2009 following the net addition of 155,900 customers. Mobile revenues reached a record high of AED881.6 million for the quarter, an increase of 48% year-on-year and 11% over Q1 09. Revenue for Du’s fixed business, including fixed telephony, TV and broadband, amounted to AED242.6 million versus AED207.6 million in the same quarter of 2008 and AED230 million in Q1 2009, with the number of fixed lines reaching 328,500. For the first time, the telco has posted a breakdown of pre-and post-paid subscribers, reporting that post-paid users represent 3% of its total customer base.

United Arab Emirates, Du (Emirates Integrated Telecommunication Company, EITC)