Du reports 0.6% drop in 1Q profit

29 Apr 2015

United Arab Emirates (UAE) telco Du has reported a 0.6% drop in its first quarter net profit to AED487.1 million (USD133 million), down from AED490.3 million a year before, with the fall blamed on higher taxes and a slight decline in the mobile user base. Revenues rose, however, from AED2.96 billion in 1Q14 to AED3.05 billion in the first three months of this year. Mobile services contributed AED2.24 billion to total revenues, stable from a year before, while sales at the fixed line division grew 20% to AED616.1 million, Reuters reported.

Du said its mobile subscriber base fell 0.9% year-on-year to 7.48 million; the company attributed the decline to an ongoing programme to deactivate unregistered SIM cards, and said the effects could also carry over into the current quarter. Du competes in the UAE fixed and mobile markets with incumbent operator Etisalat.

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