Du profit falls on higher royalty payments

Du reported a 6.7 per cent fall in third quarter profit on Tuesday on higher government royalty payments, even as revenues rose.

The Dubai-based telecommunications provider posted a net income after royalty of Dh457.2 million for the three months to the end of September, compared with Dh489.8m for the same period last year.

Profits before royalty grew 2.4 per cent to Dh995.1m for the period, thanks to a 2.9 per cent rise in revenues to Dh3.14 billion.

Profit and revenues both came in ahead of the average estimate from analyst.

Du’s mobile revenues grew 2.7 per cent to Dh2.22bn over the period, even as mobile data revenue slipped 0.6 per cent to Dh737.3m.

Fixed line revenues increased 3.7 per cent to Dh681.1m.

“As demand for digital services and data continues to grow significantly, the challenge for the entire telecommunications industry is finding ways to better monetise this structural shift,” said du’s chief executive Osman Sultan in a statement.

“Nevertheless, as we move towards becoming a truly integrated digital enabler, we remain focused on delivering more innovative data solutions for our customers and continue to see data and digital services, as well as managed services, as key areas of growth for our business.”

Du announced its results before the market opened. The stock is up 19.2 per cent for the year to date, versus a gain of 5.7 per cent for the Dubai Financial Market General Index.


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