Du records Dh2.11b profit in 2014 on structured strategy

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Du records Dh2.11b profit in 2014 on structured strategy

Telecom operator posts Dh12.2b revenues; proposes dividend

By Abdul Basit (chief Reporter)

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Published: Sat 21 Feb 2015, 12:07 AM

Last updated: Thu 25 Jun 2015, 11:57 PM

Du will increase its capital expenditure in 2015 and will spend up to Dh1.8 billion in 2015. — Wam

Dubai — Emirates Integrated Telecommunications Company, known as du, on Thursday declared Dh12.2 billion revenues and Dh2.11 billion net profit for the financial year 2014.

The company proposed final dividend payment of 20 fils bringing the total annual dividend payment to 32 fils for the year. The share price of the telecom operator, which is listed on the Dubai Financial Market, lost 1.7 per cent on Thursday trading and closed at Dh5.11.

The company will increase its capital expenditure in 2015, chief executive officer Osman Sultan told reporters during a conference call. Du will spend up to Dh1.8 billion in 2015 compared to Dh1.4 billion last year, Sultan explained.

The Dubai operator reported a net profit of Dh512.7 million for the fourth quarter, down from Dh570.3 million a year earlier. Analysts polled by Reuters on average forecast du’s quarterly profit would be Dh586.7 million.

Du’s 2014 annual profit increased by 6 per cent compared to Dh1.99 billion in 2013. Last year’s revenues also recorded more than 13 per cent growth over Dh10.8 billion in the previous year. Sultan said: “2014 was a very good year for us as we continued to deliver robust growth across all financial indicators. A solid and structured strategy implemented throughout the year, focused on the delivery and value of growth, allowed us to deliver improved financial and operational efficiency and growth in a profitable way to our shareholders.”

“By focusing on efficiency and fostering innovative techniques, policies, services and mechanisms, we have delivered strong growth in both revenues and net profit, achieving one of the highest growth rates for telecommunications companies, not just in the UAE, but also across the region,” he added.

“Our strong performance was reflected in our net profit before royalty indicator, which increased 22.8 per cent year-on-year to Dh3.70 billion versus 2013. EBITDA for the year reached Dh5.03 billion, an annual increase of 16.8 per cent. Data continued to drive the momentum in our business as customers’ demand for connectivity remained strong. As a result, demand translated into growth in mobile data revenue of 18 per cent year on year, from Dh2.36 billion in 2013 to Dh2.79 billion, with Data now representing 29.7 per cent of mobile service revenues,” he explained.

Ahmad bin Byat, Chairman of du, said: “In line with our strategic objectives, 2014 saw us continue to deliver excellent results and consistent shareholder value, with a commitment towards developing our talent and Emiratisation strategy.

We are focused on increasing value for our customers, and delivering more value to our shareholders. By embedding a culture of creativity and entrepreneurialism throughout our business we are focused on implementing cutting-edge solutions designed to enhance our customers experience.”

— abdulbasit@khaleejtimes.com

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