du Telecom Profit Expands 55%

Emirates Integrated Telecommunications Company (du) has revealed its financial results for the full year 2012, marking its 6th consecutive year of growth and expansion.

For the year, net profit before royalties rose an impressive 55.81% from AED 1.81 billion in 2011 to AED 2.92 billion in 2012. At the same time, revenues rose 14.71% from AED 8.85 billion to AED 10.16 billion and EBITDA rose by 37%.

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As for the 4th quarter itself, revenues rose 13.55% from Q4 2011, increasing from AED 2.41 billion to AED 2.71 billion; the quarter-on-quarter increase was slightly less marked at 8.64% (from AED 2.52 billion).

EBITDA was up 38.59% from the fourth quarter of 2011, while nearly 500 thousand new active mobile users were added. This brings the total number of mobile customers to 6.457 million.

The largest jumps for the 4th quarter came in net profit: before royalty it rose 71.39% to AED 852 million from Q4 2011’s AED 497 million; but the real improvement was in net profit after royalty, which skyrocketed 125.8% from the same period in 2011 and shot up 204.06% from Q3 of 2012.

du CEO Osman Sultan commented on the results, “Sustained investment in infrastructure is an essential part of the ongoing development of our capabilities and in 2012 we invested more than AED 1.72 billion in our network and IT.”

He added, “Optimizing operational efficiencies remained a key strategic driver in 2012, with efficiency improvements focused largely on network and IT outsourcing to optimize resources, streamline operations and ultimately deliver an enhanced service experience to our customers. We also took a more granular approach to market segmentation to identify and meet the differing needs of our customers, successfully launching a number of market-leading propositions to address the diverse value and service capability requirements of our prepaid, postpaid and enterprise customers.”

du Chairman Ahmad Bin Byat added that shareholders could expect a dividend shortly: “We are delighted that the Board of Directors has recommended the payment of a second dividend. The proposed cash dividend will be AED 0.30 per share for 2012 (subject to shareholder approval at our Annual General Meeting in March 2013). We have always reiterated our commitment to shareholder value creation and I believe that this demonstrates our ability to deliver on our commitments. In just 6 years we have established strong fundamentals, significant market share and a coherent strategy for the future of the business, all creating sustainable value for our shareholders.”

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