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UAE telco Du reveals 7.1% drop in Q3 profits despite rise in revenues

UAE telco Du reveals 7.1% drop in Q3 profits despite rise in revenues

Emirates Integrated Telecommunications Company, the parent company of Dubai-based telco Du, has reported a 7.1 percent year-on-year drop in net profits for the third quarter of the year, attributed to an increase in depreciation and amortisation as a result of the company’s “ambitious investment programme”. According to a filing of financial results with the Dubai

Emirates Integrated Telecommunications Company, the parent company of Dubai-based telco Du, has reported a 7.1 percent year-on-year drop in net profits for the third quarter of the year, attributed to an increase in depreciation and amortisation as a result of the company’s “ambitious investment programme”.

According to a filing of financial results with the Dubai Financial Market (DFM), “the disposal of the Khazna Data Centre in 2020 reduced the contribution from associates”.

The results revealed a net profit of AED283 million ($77.1m), down from the AED305m ($83m) posted for Q3 last year, although this was up from the second quarter of this year, when the company reported net profits of AED240m ($65.4m).

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Revenues, meanwhile, grew 6.9 percent yoy to AED2,874m ($783m), based on “sustained demand for broadband services and 5G handsets”. It was revealed that handset sales had doubled, while the postpaid segment fuelled a recovery in mobile revenue to AED1,304m ($355.1m).

Fahad Al Hassawi, CEO, said: “I am very pleased that consumer and corporate confidence are on the mend. Our fixed services business delivered another solid quarter. Broadband net-adds accelerated to 52k thanks to an attractive service offering. In addition, we see corporate demand for fixed services returning.

“Our commercial initiatives in mobile services are bearing fruits. The refreshed prepaid mobile tariffs are pushing gross-adds on the prepaid segment towards pre-pandemic levels. Our enhanced postpaid tariff plan is stimulating usage and supports a pathway to ARPU growth.

“This quarter is an inflection point for mobile service revenues: we renewed with nominal growth (+0.7 percent quarter-on-quarter) after three consecutive quarters of decline.

“Following two years of capital deployment, I am pleased to announce that our 5G network is now accessible to 90 percent of the population. The next milestone is to ultimately ensure seamless access for all residents. We remain committed to deliver value for our customers and will continue to be a market differentiator.”

Du ended the quarter with 6.5m mobile customers.

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