Du Q1 net profit increases fourfold

12 May 2010

UAE-based telecoms operator Du has announced its results for the three months ended 31 March 2010, reporting a jump in net profit before royalty to AED194 million (USD52.8 million), up from AED47 million in the same period a year earlier, driven by subscriber growth and new product launches. Revenue for the first quarter of 2010 rose 36% year-on-year from AED1.16 million in the first quarter of 2009 to AED1.58 billion. Mobile revenues were their highest ever for a quarter, jumping 47% to AED1.17 billion. Du’s capital expenditure programme is expected to exceed AED2.2 billion in 2010, with AED369 million accounted for the first quarter. Du added 262,000 mobile subscribers in the period to bring its total wireless base to 3.74 million, while the number of fixed lines in service jumped 47% to 456,700, with 50,900 lines added in the quarter.

In order to help drive the Dubai-based company’s accelerated growth strategy, Du has also revealed that its shareholders have approved a plan to raise additional capital of AED1 billion by selling 571.4 million shares at AED1.75 each. The firm plans to implement the rights share offer within the next three months to increase capital to AED4.57 billion from AED4 billion. Du’s chairman, Ahmad bin Byat, commented: ‘This is an encouraging start to 2010 with record revenues for the quarter and sustained profitability, supported by some significant new initiatives, including our proposed rights issue that will provide even greater impetus and acceleration behind our ongoing growth strategy.’

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