Du Q1 net profit slips as royalty rate rises

Du, the UAE telecom operator, reported a 1.4 per cent fall in first-quarter net profit on Tuesday after it paid a higher rate of tax than a year earlier.

The firm, which ended rival Etisalat’s domestic monopoly in 2007, had reported declining profits in the preceding five quarters according to Reuters data.

Du made a net profit of Dh480.1 million in the three months to March 31, down from Dh487.1m in the year-earlier period, it said in a statement.

Analysts at EFG Hermes and SICO Bahrain forecast du would make a quarterly profit of Dh480.7m and Dh501.6m respectively.

First-quarter revenue was Dh3.09 billion, up 1.3 per cent on a year ago.

For 2016, du will pay 15 per cent of its regulated revenue – which excludes the likes of handset sales – and 30 per cent profit of its regulated profit in royalties. These taxes are up from 12.5 and 30 per cent respectively in 2015 and have steadily increased from 2012 onwards.


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