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Mon, Oct 07, 2024 | Rabiʻ II 3, 1446 | DXB 
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Du’s Q2 profit expected to rise by 79 per cent
DUBAI — Emirates Integrated Telecommunications Company,
- Updated: Wed 21 Aug 2024, 10:41 AM
Known as du, is expected to earn a net profit of Dh103 million in the second quarter, 79 per cent more than the telecom operator reported in the same period last year, according to Al Mal Capital – an investment bank.
The Dubai-based carrier had reported a four-fold gain for the first quarter profit, which reached Dh58 million compared to Dh23.4 million it earned during April to June in 2009.
It is also projected that the telecom operator’s second quarter net profit would be higher by 6.2 per cent, compared to the first quarter’s profit of Dh97 million.
A potential catalyst for the UAE telecoms sector is the opening up of the fixed voice and broadband segment throughout the UAE.
In 2009 du had a 15 per cent revenue market share of this Dh6.55 billion segment and we expect du to gain market share over the medium term once infrastructure sharing is launched,” Al Mal said in a statement.
The carrier’s revenue is expected to grow to Dh1.63 billion, a 3.4 per cent quarter-on-quarter rise and 25 per cent year-on-year gain.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) is projected to grow to Dh400 million in the second quarter, a 4.3 per cent rise compared to first quarter and 26 per cent gain over 2009 second quarter. EBITDA margins are expected to improve on quarter-on-quarter to 24.5 per cent in the second quarter from 23.2 per cent in the first quarter and 18.5 per cent compared to the second quarter last year.
Du’s Dh1 billion rights issue has helped to strengthen its balance sheet. However, it has taken its toll on du’s share price as investors have sold shares to take up their rights entitlement, at Dh1.75 per share.
The share price of the telecom operator jumped by 3 per cent to Dh2.01 on the Dubai Financial Market on Thursday. The carrier’s share price fell by 30 per cent this year. “It appears that shareholders have been selling their rights shares in the market to lock in profits. As the rights overhang is absorbed by the market we expect the share price to recover,” the investment bank said. — abdulbasit@khaleejtimes.com
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