Du,  a leading UAE telecom provider, has posted a net profit of Dh47 million ($12.80 million) in the first quarter from a Dh62 million loss in the year-earlier period, the firm said in a statement.

Du was well positioned to 'prosper throught 2009 and 2010' the company said in its statement on the Dubai bourse website.

The IT firm reported total revenues for the quarter of Dh1.166 billion, up 54 per cent in the same period of 2008.

Other highlights in the report included:

• Gross margin of 67 per cent, up from 61 per cent in Q1 2008
• Earnings before interest, tax, depreciation and amortization of Dh159 million, compared to Dh2 million in Q1 2008
• Net profit of Dh47 million before Royalty , up from a net loss of Dh62 million in Q1 2008
• 252,000 active  mobile customers added during the quarter, up from 181,100 in Q1 2008

“With significant year-on-year revenue growth translating into uplift in gross margin, these results are testament to du’s strong performance,” said Ahmed Bin Byat, chairman of du.

“In the first quarter of 2009 we have continued to build upon our considerable success in 2008 and I firmly believe that the company is well positioned to prosper throughout out 2009 and into 2010,” he added.

“However, we are not complacent and are fully aware of the challenges presented by both a global economic recession and a highly competitive telecommunications market. While we are by no means immune to the effects of the global downturn, I believe that three critical factors will help shield du to some extent from these pressures.”

“Firstly, the significant investment we have made, and continue to make, in our state-of-the-art network; secondly our focus on innovative new products and services for our growing customer base; and finally, our unwavering commitment to driving value for money for our customers. Together these make du an attractive proposition for both shareholders and customers alike,” Bin Nyat concluded.

Osman Sultan, du’s chief executive officer, said: “Against an undeniably challenging backdrop and following a solid start to the year evidenced by our continued success in acquiring significant levels of new customer numbers in the quarter, we are poised to take du into the new phase of its growth.”

“Q1 has seen us launch international WOW and Double Talk Time, both of which have provided an immediate benefit to our customers. In April we also launched our post-paid elite and premier product, for which most of the investment was done in Q1, to address the high end market,” he added. – TradeArabia News Service