Du has 5 million mark for mobile customers in its sights
A rise in high-value mobile subscribers prompted a 51 per cent year-on-year profit increase for du during the second quarter.
The UAE telecommunications company said it had added 171,100 active mobile customers during the quarter, taking the total to 4,775,900, as it continues to gain market share on rival operator Etisalat.
Total profit stood at Dh414 million for the quarter, although is reported at Dh207 million because the company provisions 50 per cent of its net income as a royalty fee to the UAE Government.
Revenues rose to Dh2.172 billion, up 28 per cent compared to the second quarter of 2010.
Growth in revenue was slightly above that forecast by JPMorgan, which said in a note that it was expecting a 26 per cent rise in the second quarter.
However, net income fell slightly short, with JPMorgan forecasting profits of Dh215 after the royalty provision.
Du, which sold itself as a low-cost operator when it launched, said it had been building its high-value customer base.
It's postpaid mobile customer base contributed 44 per cent of the growth in mobile revenues during the second quarter, the operator said.
These customers contributed to a higher average revenue per user (ARPU), said du's chief executive Osman Sultan.
"More than a quarter of the growth in mobile revenue can be attributed to an increase in ARPU, driven by increased usage by our customers," said Mr Sultan in a statement.
Published: August 3, 2011 04:00 AM