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UAE telco du Q3 net profit declines 12.3 pct
November 3, 2015 / 5:12 AM / 2 years ago

UAE telco du Q3 net profit declines 12.3 pct

DUBAI, Nov 3 (Reuters) - Du, the United Arab Emirates’ second biggest telecommunications operator, reported a 12.3 percent fall in third-quarter net profit on Tuesday, missing analysts’ estimates.

The firm, which ended rival Etisalat’s domestic monopoly in 2007, had also reported declining profits in the preceding three quarters.

Du made a net profit of 489.8 million dirhams ($133.4 million) in the three months to Sept. 30, down from 558.7 million dirhams in the year-earlier period, the company reported in a bourse filing.

Two analysts polled by Reuters had on average forecast du would make a quarterly profit of 521.3 million dirhams.

Third-quarter revenue was 3.05 billion dirhams, compared with 3.03 billion dirhams a year ago.

The operator had 7.28 million mobile subscribers as of Sept. 30, down 3.2 percent from 12 months earlier. Du attributed this to the effect of the UAE Telecommunications Regulatory Authority’s ‘My Number, My Identity’ campaign, which required all users to register their mobile numbers to protect privacy and avoid fraud.

Du paid royalties - or tax - of 481.85 million dirhams in the three months to Sept. 30, up from 413.04 million dirhams in the prior-year period.

For 2014, du paid 10 percent of its regulated revenue - which excludes the likes of handset sales - and 25 percent of its regulated profit in royalties. These taxes have risen to 12.5 and 30 percent respectively this year. (Reporting by Hadeel Al Sayegh; Editing by Andrew Torchia)

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