Du posts estimate-beating Q2 profit gain
Dubai, July 24, 2014
Du, the United Arab Emirates' second biggest telecommunications operator, reported a 15.6 percent rise in second-quarter profit on Thursday, beating analysts' estimates on the back of increased revenue from fixed and mobile services.
The firm, which ended rival Etisalat's domestic monopoly in 2007, made a net profit of 547.7 million dirhams ($149.1 million) in the three months to June 30, up from 473.9 million dirhams in the year-earlier period.
Analysts polled by Reuters had on average forecast du would make a quarterly profit of 498.8 million dirhams.
Second-quarter revenue was 3.02 billion dirhams, rising 13.7 percent on the same period a year ago, with fixed line revenue and mobile revenue up 30 percent and 10 percent respectively.
Data revenue also grew 18.6 percent year-on-year to 680 million dirhams.
Du's active subscribers grew 7.6 percent year-on-year to 7.2 million, although the figure dipped 5.2 percent from the first quarter of 2014 as a local government initiative requiring all mobile users to register their numbers saw 468,000 phone numbers withdrawn from service.
The company warned further reductions could be possible in coming quarters.
The firm's board recommended paying a cash dividend of 0.12 dirhams per share for the first half of 2014. This is lower than the 0.22 dirhams per share paid in the year-earlier period, according to Thomson Reuters data. - Reuters