du reports a 7.9% increase in net profits for Q1,2018

One-off reversal related to regulatory costs positively impacted company profitability and EBITDA and net profit after royalty increased by 18.2% and 40.5% respectively in Q1 2018
Sultan: “We continued to maintain tight control on costs, to optimise our capex spend and to improve efficiencies across the business."
Sultan: “We continued to maintain tight control on costs, to optimise our capex spend and to improve efficiencies across the business."

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Emirates Integrated Telecommunications Company (“du”) has reported revenue of AED 3.33 billion($910 million) for the three months ended 31 March 2018 with an increase of 5.2% YoY.

In Q1 2018 EITC recorded a one-off reversal related to regulatory costs, which positively impacted company profitability. Consequently, EBITDA and net profit after royalty increased by 18.2% and 40.5%, respectively in Q1 2018 as compared to the same period last year.

Excluding the impact of the cost reversal, EBITDA and net profit after royalty increased by 4.5% and 7.9% respectively, for the same time period.   

During the period, EITC announced the appointment of Mohamed Al Hussaini as Chairman of the Board of Directors. 

Osman Sultan, EITC’s CEO, said:   “EITC had an excellent start to the year, with the new strategy delivering growth in revenue, subscribers and net profit.”

A positive for the quarter, the average revenue per user (ARPU) stabilised compared to the declining trends seen last year. Growth in the mobile subscriber base, now counting more than 9.3 million subscribers, was mainly driven by the postpaid base. Fixed line subscriber base increased by 6.5% in Q1 2018, compared to the same period last year.     

Sultan added: “We continued to maintain tight control on costs, to optimise our capex spend and to improve efficiencies across the business. These actions have benefited. We remain cognisant of industry-wide challenges, with continued pressure on voice revenues and challenges in monetising data. In 2017 we embarked on a transformation journey designed to respond to these new market realities, with a new strategy, as well as the launch of our fully digital brand Virgin Mobile.  

“Our results for the first three months of the year are a testament to the positive benefits already derived from the changes implemented in 2017. Looking ahead to the rest of the year, we will continue to focus on capitalising on the ever expanding technology needs of the UAE and its people, maximising value for our subscribers, customers and shareholders.”

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