UAE telecoms firm Du Q2 net profit up 1.3%

19/07/2018 08:29 AST

Du, the UAE's second-biggest telecoms operator, reported a 1.3 per cent increase in second-quarter net profit on Thursday, as total revenues rose The Dubai-based operator made a net profit after royalty of Dh453 million in the three months to June, slightly up from Dh447m in the same period last year, it said in a statement on Thursday. EFG-Hermes forecast it would earn a quarterly profit of Dh429m. Total revenues grew 2.9 per cent to Dh3.35 billion but mobile revenues slid 1.6 per cent to Dh1.82bn while fixed-line revenue jumped 9.4 per cent to Dh583m.

"Top-line growth was supported by a solid performance in our fixed line business," Osman Sultan, Du's chief executive, said in the statement. "Mobile revenues, although impacted by seasonality with Ramadan and Eid being observed in the second quarter of the year, were stable."

The company said in May it would roll out this year a limited service of 5G, the ultra-high speed mobile broadband that is set to revolutionise the internet, ahead of a wider launch next year. The announcement followed the UAE's largest telecoms firm Etisalat's plans to roll out 5G commercial fixed devices and services this coming September.

Du said its board of directors proposed a dividend payment of 13 fils per share, subject to shareholder approval at its general meeting.

"Our company had a strong second quarter and a solid first half of the year in 2018, with growth across all our key indicators," said Mohamed Al Hussaini, chairman of Du. "Despite a maturing telecom market, we are pleased to deliver excellent growth in revenue and net profit."

The National