UAE's du sees a 24% fall in Q1 profits

Company excited about the opportunity presented by Virgin Mobile UAE
Sultan: "We continued our focus on identifying efficiencies during the quarter, which will enable us to deliver long-term value for our stakeholders."
Sultan: "We continued our focus on identifying efficiencies during the quarter, which will enable us to deliver long-term value for our stakeholders."

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UAE operator du has reported a 24% decline in its Q1 profits(after royalty) for the three-month period ended 31 March 2017. The telco's profits for this quarter stood at AED 364.9 million ($ 99.3 million) compared to AED  480.1 million ($ 130.7 million) in Q1, 2016. Net profit before royalty has also decreased in this quarter. The company did report a 2.5 per cent increase in revenue, up to $863 million (AED 3.17billion), and a 3.2 per cent increase in mobile subscribers, up to 8.3 million.

Segment analysis shows that the contribution from mobile segment has remained flat YoY, the contributions of fixed and wholesale segments have gone up slightly. The contribution from the broadcast segment has declined though. 

Osman Sultan, EITC’s CEO, said: “Despite challenging market conditions, we made steady progress on the implementation of our strategy of customer experience improvement and digital transformation. Revenue grew at a steady pace, underpinned by an increase in our fixed line business, offsetting pressure on mobile revenue during the quarter. We continued our focus on identifying efficiencies during the quarter, which will enable us to deliver long-term value for our stakeholders.”

Sultan highlighted that data remains a core pillar of du's business. “At EITC, we believe that by embracing change and encouraging innovation we can meet the evolving needs of our customers. During the quarter, we announced our second brand, Virgin Mobile, to the public, cementing our reputation as a digital transformation partner of choice and a leading ICT solutions provider. The initial response has been overwhelmingly positive and we are truly excited about the opportunity Virgin Mobile presents in meeting the growing requirements of the fast-paced and dynamic country in which we operate.”

In February this year, Sultan had said the company expects to save 1 billion dirhams ($272.3 million) by 2019 as higher government taxes continue to weigh on its net profit. He said the savings would come from changes to its cost of sales, operational expenses and capital expenditure.

 

 

 

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