Dubai-based telecom operator’s revenues grew 9.7 per cent to Dh10.8bn with revenue from mobile data increasing by 33.8 per cent to Dh1.77bn. Board agrees total annual dividend payment of Dh0.31 per share.
Du’s 2013 profits flat after royalty fees rise by Dh183.5 million
Emirates Integrated Telecommunications (du) yesterday reported a stagnant net profit after royalties of Dh1.99 billion for 2013.
Royalty fees increased by Dh183.5 million year on year.
The Dubai-based telecoms operator’s revenues grew by 9.7 per cent to Dh10.8bn with revenue from mobile data increasing by 33.8 per cent to Dh1.77bn. Net profit before royalties grew 6.7 per cent to Dh3.01bn.
Earnings before interest, taxes, depreciation and amortisation increased 7.3 per cent to Dh4.29bn.
The board has agreed to a total annual dividend payment of 31 fils per share.
Revenues for the fourth quarter of last year grew 8.3 per cent to Dh2.87bn compared with the same period in 2012 while net profit after royalties fell 43 per cent to Dh570m.
“Over the full year we achieved good revenue growth and healthy levels of profitability driven by our strategic focus on higher value segments of the market and greater operation efficiency,” said Osman Sultan, the chief executive. “Data continued to be a key market driver during 2013 as our customers’ demand for connectivity remained strong.”
Mobile data revenues represent 27.7 per cent of du’s mobile service revenue, up from 22.6 per cent in 2012. To meet the rise in demand for data, du expects this year to invest as much as Dh1.7bn in its long-term evolution (LTE), which provides a faster data connection.
The operator added nearly 350,000 mobile subscribers in the fourth quarter, bringing its mobile customer base to 7.4 million.
“Despite a strong competitive environment, we recorded near double digit growth by developing innovative propositions to meet the requirements of our rapidly evolving customer base, including focus on providing high speed data,” said Ahmad Bin Byat, the chairman.
Mr Sultan declined to confirm or deny a Reuters report this week that the company had secured a US$720m loan to replace two existing debt facilities, but said negotiations were taking place.