Ringing up the profits, du records 50 per cent jump

The UAE's second telecoms copmany du has reported a year on year profit increase of 50 per cent.

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Profits soared at the UAE's telco du by 50 per cent year on year from Dh326 million in the third quarter up to Dh489m in the same period, the company reported today.

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The growing figures, which are net profit and before royalty, were also reflected in its revenues which also increased 28 per cent compared to the same quarter last year to Dhs 2,234 million.

"I am very pleased to say that the third quarter has been business as usual as far as du's performance is concerned," said Osman Sultan, du's chief executive.

"We continue to attract new customers and we are seeing our existing customers further increase their use of data," he said.

Data services, which the company's customers use to connect to the internet using their smartphones such Apple's iPhone, increased 46 per cent year on year to Dhs167 million.

This now comprises 9.8 per cent of the company's mobile revenues and reflects the soaring demand for these high-tech mobile devices in the Emirates.

Other highlights of its third quarter results for 2011 are that the telecommunications company recorded continued positive free cash flow of Dhs509 million.

"We are now also in the third consecutive quarter of free cash flow generation, a real sign of the company's strong performance and of our unwavering focus on creating shareholder value, which is our overall goal," said Mr Sultan.