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Du third-quarter profit increases 18 per cent [New Vision (Uganda)]
[October 28, 2014]

Du third-quarter profit increases 18 per cent [New Vision (Uganda)]


(New Vision (Uganda) Via Acquire Media NewsEdge) The UAE's second telecoms operator du said that its third-quarter net profit after royalty fees was 18 per cent higher at Dh559 million, as fixed-line and mobile revenues boosted earnings.



Du's revenues grew to Dh3.03 billion, up 15 per cent against the third quarter a year ago. Net profit before royalty fees rose 27 per cent during the period to Dh972m.

"Key drivers behind du's solid performance include 36 per cent growth in fixed revenue from the third quarter of 2013 as well as 9 per cent year-on-year growth in mobile revenue," du said in a statement.


Fixed revenue for du increased 36 per cent in the third quarter to Dh598m versus Dh439m a year ago. Mobile revenue reached Dh2.24bn, up 9 per cent year on year. Mobile data revenues were up 11 per cent to Dh616m. Data represents 30 per cent of the mobile service revenues.

Telecoms operators in the UAE have been facing pressure on the voice side of their business as voice over internet protocol (VoIP) applications continue to increase in popularity. But the loss has been offset by the high penetration of smartphones, which bring data revenues and boost earnings growth.

"The issue for the industry remains our ability to monetise data," said Osman Sultan, du's chief executive. This challenge is one we are focused on, through the development of innovative service provisions for our customers." Moving forward, du said that its fourth quarter is "likely to be affected" by an expected network-sharing announcement with its competitor Etisalat.

"This move will result in direct competition between the pair [du and Etisalat] on landline and internet service, increasing du's potential to gain market share as du's current fixed infrastructure is confined to new developments in Dubai," the telecoms operator said in the statement.

Matthew Reed, an analyst at Ovum said: "As du's growth story continues, the most interesting development is du's confirmation that it expects to see competition in fixed services introduced by end of this year and that it also expects to increase its share of the fixed market as a result." In 2015, du's focus will be on turning Dubai into a smart city, as the telecoms company aims to provide free Wi-Fi across 100 Dubai and Abu Dhabi locations. Last year, Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, announced his vision to turn Dubai into a smart city, which will allow residents to access government services via smart devices using high-speed internet connection.

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