UAE telecommunications operator du has surpassed analysts' profit expectations but fallen short of revenue estimates in its third-quarter results.
Profit leap for du
Du, the UAE's second-largest telecommunications operator, has surpassed analysts' profit expectations but fallen short of revenue estimates in its third-quarter results released today. The mobile operator reported revenue of Dh1.33 billion, an increase of 25.8 per cent compared to the same period last year. The company also lifted earnings 192.9 per cent from the same year-earlier period to Dh297.3 million, while adding more than 233,000 mobile subscribers to its network. The company said its net profit before royalty payments in the quarter was Dh157.1m, an increase 398 per cent from the same period last year and a 36 per cent gain from the previous quarter. According to a survey of four analysts polled by Bloomberg, du was estimated to report revenue of Dh1.36bn with an Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of Dh237m. "Du has maintained its growth strategy and remains Emirates focused, as well as securing further market share," said Osman Sultan, the chief executive of du, in a statement. "Du has seen continued growth of mobile subscribers with 233,200 additional net subscribers added for the quarter. Despite seasonal influence du has maintained positive profit and EBITDA growth demonstrating du's commitment to both customers and shareholders." The company now has more than 3.139 million active mobile subscribers, accounting for 29.6 per cent of the UAE's mobile market share. Etisalat, du's main competitor, announced it has 7.44m mobile subscribers on its domestic network earlier this month.