du announces double digit profit and revenue increase

du announces double digit profit and revenue increase

UAE telco du has announced a net profit increase of 57.1% year-on-year in its second quarter financial results, reaching AED 651 million.

A 14% increase in mobile revenue, to AED 1.9 billion, contributed to an overall revenue increase of 12% year-on-year for the telco, from AED 2.2 billion in Q2 2011 to 2.5 billion in Q2 2012.

Mobile data revenue, which rose 84.8% from AED 151 million to AED 278 million, was one of the main contributors to this increase.

du, which ended Etisalat’s monopoly on the UAE market in 2007 also, experienced an EBIDTA increase of 36.6% during the period, reaching AED 941 million.

“The second quarter remained strong for du, with continued healthy customer additions, particularly in the high-value post-paid segment, which now represents nearly eight percent of our mobile customer base. There are clear signs that the company is entering the next phase of its evolution,” said Osman Sultan, CEO of du.

The company added 196,300 mobile customers during the second quarter, bringing its total mobile customer base to 5.7 million. du also increased post-paid mobile customer numbers by 36,300, representing 7.8% of the mobile customer base. While fixed-line subscribers increased 10.6% to 546,600.

The UAE boasts one of the world’s highest rates of mobile penetration, standing at 150.9% in March 2012, according to research firm TeleGeography. du estimated that its market share stood at 46.5% in June 2012 compared to Etisalat’s 53.5% during the same period.

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