du reports 3.1% rise in net profit

Emirates Integrated Telecommunications Company PJSC (du) yesterday announced its financial results for the second quarter of 2015 which showed a 3.1% rise in net profit before royalty to Dh 978.5 million.

The company said it plans to distribute to its shareholders an interim dividend of 13 fils per share, up from 12 fils per share in Q2 2014, and a special dividend payment of 10 fils per share, both of which will be proposed at the general meeting in September 2015.

Highlights of the quarter included a 20.2% increase in fixed line revenue, and a 4.9% rise in data revenue. Earnings before interest, tax, depreciation and amortization (EBITDA) climbed 3.5% to Dh 1.34 billion.

Second quarter net income after royalty declined 8.3% to Dh 502 million compared to Q2 2014, a result of increasing royalty payments, which rose 18.8% year-on-year to Dh 476.4 million.

Commenting on the results, Ahmed bin Byat, du's Chairman, said: "We are delighted to propose a return of Dh 1.05 billion to our shareholders by way of a special and interim dividend, to reward them for their ongoing commitment and support."

"Looking ahead, we remain deeply committed to the UAE's smart government initiatives, and our partnership with the TRA's FEDNet programme is testament to our ongoing support for the government in its push to strengthen the UAE's position as a global leader."

"The recently launched bit streaming agreement with Etisalat also reflects our commitment towards supporting the UAE's efforts to deliver the best choice and customer experience to its residents and visitors, and will help to strengthen the telecommunications sector through healthy competition."

Osman Sultan, du's Chief Executive Officer, said: "Our focus on ‘quality growth' remained steadfast during the quarter, as evidenced by a 14.2% rise in post-paid subscribers and a 3.5% increase in EBITDA."

"As the world we operate in becomes ever more connected, the demand for data continues to grow. This trend is reflected in mobile data revenue reaching Dh 719.3 million in the second quarter, representing 31.1% of overall mobile service revenues, up from 29.4% in the same period a year ago."

"It is worth noting that we have been rigorously applying the ‘My Number, My Identity' campaign requirements over the year. While we continue to witness some impact to our subscriber base, we expect this to weaken over the next quarter, and we continue to support this very worthwhile initiative."