Markets Update: Du's royalty to the Federal Government for last year will rise from the year before, giving up a slice of revenue.
Du to payout revenue as well as profit in UAE Government royalty
Du said its royalty to the Federal Government for the last financial year will rise from the year before.
In addition to 15 per cent of profit the company will pay a further 5 per cent of its revenues, the company said in a statement today to the Dubai Financial Market.
The company reported a profit of Dh1.31bn (US$357 million) in 2010, up from Dh264m a year earlier after royalty reduction. The company is expected to report full year earnings for last year next month.
The operator should expect another year of double-digit growth for last year. Earnings before interest, taxes, depreciation and amortisation is forecast to increase 15.4 per cent for this year to 2013, and profit before royalty to grow 18.8 per cent during the same period.
The firm's third quarter profits last year rose by 50 per cent year on year up to Dh489m.
Du's shares were trading 2.9 per cent higher this morning at Dh3.16.
The company made Dh7.07 bn revenue in the 2010 to 2011 financial year, but is tipped by analysts to rake in around Dh8.8bn for the 2011/2012 year, putting the royalty payment from revenue at around Dh440 million.