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Du posts Dh1.99b profit in 2013

Firm’s net profit before royalty up 6.7% to Dh3.01 billion in 2013

Du’s mobile revenue reached Dh8.37 billion, a 9.6 per cent increase year on year, while mobile data revenues increased by 33.8 per cent to Dh2.36 billion from Dh1.77 billion in 2012. — KT photo

The UAE’s telecom operator du announced on Tuesday that its net profit rose to Dh1.99 billion in 2013 from Dh1.98 billion in 2012 despite an increase in year-on-year royalty.

Du said it paid an extra Dh183.5 million in royalties in 2013 compared with a year earlier.

Net profit before royalty grew 6.7 per cent year-on-year to Dh3.01 billion compared to Dh2.82 billion in 2012, the company said.

In the last quarter of 2013, du made a net profit of Dh570 million, a drop of 43 per cent from Dh994 million in the year-earlier period,

In a statement, the Dubai-based telecom company said its board had approved a cash dividend of Dh0.19 per share.

“The results show another year of solid performance for the company on all main indicators resulting in an increased dividend payout to shareholders,” it said. Full year revenues grew 9.7 per cent to Dh10.80 billion from Dh 9.84 billion in 2012

Mobile revenue reached Dh8.37 billion, a 9.6 per cent increase year-on-year while mobile data revenues increased by 33.8 per cent to Dh2.36 billion from Dh1.77 billion in 2012. Data income now represents 27.7 per cent of mobile service revenues, du said.

Du’s fixed line revenue grew to Dh1.71 billion, up 6.8 per cent over the course of 2013 million year-on-year

Ahmad bin Byat, Chairman of du, said the telecom operator’s business experienced another year of solid growth, in line with expectations. “Despite a strong competitive environment, we recorded near double digit growth,” he said. “Going forward, we are proud to be working under the umbrella of the UAE’s 2012 Vision to implement Smart Government and we look forward to contributing to the transformation of Dubai into a Smart City,” said Byat.

Osman Sultan, du’s Chief Executive Officer, pointed out that the company’s strong performance was reflected in its net profit before royalty, which was up on 2012 at Dh3.01 billion. Earnings Before Interest, Taxes, Depreciation and Amortisation for the year reached Dh4.29 billion, an annual increase of 7.3 per cent, he said.

“Data continued to be a key market driver during 2013 as our customers’ demand for connectivity remained strong. This demand translated into significant growth in mobile data revenue, which increased by 33.8 per cent to Dh2.36 billion. As was the case last year, data now represents a larger percentage of mobile service revenues,” he said.

Sultan said in 2013 du implemented a number of key management changes to ensure that the best people are in the positions to respond to the challenges and opportunities its business now faces “We say goodbye to Mark Shuttleworth after eight and a half years of dedicated and professional service, with gratitude, and in his place welcome Amer Kazim as new chief financial officer.”

• issacjohn@khaleejtimes.com