Slower customer growth for du

Reduced immigration is likely to hit the mobile operators' ability to sign up new customers.

ABU DHABI // The du mobile network is expected to report a slowdown in new customers during the first three months of the year when quarterly results are announced in the coming week. The network has taken a clear lead in the battle for new customers, signing on almost twice as many as its competitor, Etisalat, in the final six months of 2008. But according to a results preview by Al Mal Capital, reduced immigration will dampen subscriber growth for the company. After reporting its first quarterly profit in late 2008, du is expected to make a profit of around Dh42 million (US$11m) for the first quarter of 2009. As the company is now profitable, it will begin paying a 50 per cent federal royalty on all earnings. The company's share price has increased by 28 per cent since the beginning of the year.

-The National