Du posts Dh487million profit
Mobile data continues to be key earnings generator during Q1
Dubai — Emirates Integrated Telecommunications Company, known as du, on Tuesday reported a modest fall in first quarter profit that declined to Dh487.1 million, missing analysts’ forecasts.
Du had rigorously applied the ‘My Number, My Identity’ campaign requirements over the past nine months. — Wam
The telecom operator’s financial results showed a 6.9 per cent rise in net profit before royalty to Dh925 million but fell down by 0.6 per cent after royalty compared to Dh490.3 million a year ago. Three analysts polled by Reuters had on average forecast du would make a quarterly profit of Dh564.7 million. First-quarter revenue increased to Dh3.05 billion, compared to Dh2.96 billion a year earlier. Du paid royalties of Dh437.9 million in the first three months of 2015, up from Dh375 million in the prior-year period.
Underpinning the performance was a 20.5 per cent rise in fixed-line revenue and a 14.4 per cent increase in mobile data revenue.
During the first quarter du continued to rigorously enforce the “My Number, My Identity” campaign aimed at protecting subscriber privacy and detecting fraudulent behaviour. As a result of this, a number of subscribers were suspended, resulting in a year-on-year decline in mobile subscribers. “This quarter we delivered against our strategy of focusing on ‘quality growth’ as evidenced by the 20.5 per cent rise in fixed revenue to Dh616.1 million, the 9.7 per cent increase in Ebitda to Dh1.30 billion and the 6.9 per cent rise in net profit before royalty to Dh925 million,” du CEO Osman Sultan said.
“Mobile data continued to be a key earnings generator during the first quarter as customer demand for connectivity remained strong. Mobile data revenue rose 14.4 per cent to Dh715.6 million during the first three months of the year and now represents 30.9 per cent of overall mobile service revenues, up from 27.6 per cent in the same period a year ago.”
“It is worth noting that we have been rigorously applying the ‘My Number, My Identity’ campaign requirements over the past nine months. While we support this very worthwhile initiative, we have witnessed an impact in 2015 to our subscriber base.”
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