News Column

Du rings in Dh548m second-quarter profit

July 24, 2014

Naushad K Cherrayil Staff Reporter

Dubai: Emirates Integrated Telecommunications Company (du) announced a 15.5 per cent increase in second-quarter profit of Dh548 million, fuelled by an uptick in fixed revenue of 30 per cent as well as almost a 10 per cent rise in post-paid mobile revenues.

The telecom operator paid Dh401 million as royalty fees.

Du needs to pay 10 per cent of revenues and 25 per cent of net profit as royalty fees to the UAE Federal Government this year compared to 7.5 per cent of revenues and 20 per cent of net profit in 2013.

"Our strong performance is reflected in our net profit before royalty. EBITDA for the quarter reached Dh1.29 billion, an increase of 17.9 per cent compared to the same quarter last year. Data continued to be a key market driver during the quarter which translated into data revenues of Dh680 million in the quarter, an 18.6 per cent year-on-year increase as our customers' demand for connectivity remained strong," said Osman Sultan, du's Chief Executive Officer.

The company has announced that it will issue shareholders with an interim dividend of 12 fils per share, same as last year and apart from the one-off dividend of 10 fils, as a reward for their continued support.

Revenues exceed Dh3 billion for the first time to Dh3.02 billion, a 13.7 per cent increase compared to the same period last year of Dh2.66 billion.

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Source: Gulf News (United Arab Emirates)

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