Du revenue up 25% in 2011 on growing subs, data usage

6 Mar 2012

Emirates Integrated Telecommunications Company (Du), the UAE’s second national telecoms operator, has announced its financial results for the three- and twelve-month periods ended 31 December 2011. The company said it generated revenue of AED8.86 billion (USD2.42 billion) in full year 2011, an increase of 25.2% compared to 2010, on the back of a 17.9% year-on-year and 8% quarter-on-quarter rise in Q4 2011 turnover to AED2.41 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 25.7% from AED675 million in Q4 2010 to AED848.3 million in the same quarter of 2011, and totalled AED2.9 billion in 2011, up 44.6% from AED2.0 billion the previous year. Net profit before royalty saw year-on-year increases of 47.8% in 2011 and 15.4% in the fourth quarter of the year, to AED1.8 billion and AED497.4 billion, respectively. Net profit after royalty stood at AED1.085 billion in the twelve-month period, reflecting the increased royalty payable to the UAE federal government for 2011 of 15% of net profit plus 5% of total company revenues (compared to a royalty payment of 15% of net profit in 2010). This resulted in a royalty payment of AED715 million, compared to AED184 million for 2010. Capital expenditure for the year stood at AED1.29 billion, up slightly from AED1.25 billion in 2010.

Strong subscriber growth, an increase in average revenue per user (ARPU) and rising data usage were the key drivers behind Du’s strong sustained mobile revenues, which reached AED1.9 billion in the three-month period, up 20% compared to Q4 2010, and rose 29% during 2011 to AED6.8 billion. Mobile data revenues jumped 63.4% year-on-year to AED237 million in the last three months of 2011, accounting for 12.6% of total mobile revenues. Du said it added 278,100 net mobile subscribers during the quarter (including 19,300 post-paid users), taking its wireless customer base to 5.216 million at 31 December 2011, of which 6.96% were post-paid. Mobile ARPU for the quarter increased from AED118 in 3Q 2011 to AED124 three months later. Revenues generated by Du’s fixed business, including fixed telephony, TV and broadband, amounted to AED391.2 million in Q4 2011, a 20% year-on-year increase, and rose 25% in 2011 to AED1.5 billion. Du counted a total of 530,800 fixed lines at the end of 2011, up from around 477,000 a year earlier.

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