du's profit falls by 8% in Q2

Telco blames higher taxes for profit decline
Du's profit falls by 8% in Q2

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Du, the UAE’s second teleco operator, posted a net profit of AED502 million ($136.7 million) in the three months to June 30, a decline of 8% compared to the same period last year when the company made a profit of AED547.7 million.

du’s revenues for the second-quarter reached AED3.09 billion, up from AED3.02 billion in the second quarter of 2014.

Quarterly mobile revenue fell 1.4% year-on-year to AED2.23 billion despite the operator’s mobile customer base growing by 2.7% to 7.36 million as of June 30, Reuters reported.

This decline was due to a drop in ARPU (average revenue per user), which fell to AED92.6 from AED96.8 a year earlier.
Data accounted for 31% of mobile revenue in the quarter, up from 29.4% a year earlier.

The company paid royalties of AED476.4 million in the three months to end June, up from AED401.2 million in the prior-year period, the report added.
 

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