Dubai: Emirates Integrated Telecommunications Company (du) reported Dh528 million in profits before royalties for 2009, up significantly from Dh8 million. Up from a year before.
Its revenues grew by 35 per cent to Dh5.3 billion, driven by one million new active mobile subscribers. Having grown by 41 per cent last year, its total mobile subscribers now number 3.4 million.
Fourth-quarter profits before royalties touched Dh209 million, a record for the company, representing year-on-year growth of 155 per cent. Revenues grew 24 per cent to Dh1.5 billion in the fourth quarter as mobile subscribers increased by 337,900.
Diversification
Chief Executive Osman Sultan told reporters in Dubai yesterday that the company's goal was to ensure continued growth levels by "going into other areas", since the country's mobile penetration is already over 200 per cent.
"We expect a continuation of growth in revenues … and we have a growth plan," he said. Commenting on 2010 profits, Sultan said, "Clearly, we expect growth to be above the market average."
Talks are still ongoing on infrastructure sharing, which would enable du to offer fixed-line, internet and television services across the country. Sultan said that it could start offering its full range of services on its competitor's infrastructure in the second half of this year.
The Telecom Regulatory Authority has been trying to encourage infrastructure sharing to avoid duplication of investment. Etisalat recently invested in upgrading its cable system to allow customers to switch fixed-line operators.
During this year, the operator has planned for capital expenditure of Dh2.2 billion. This will go towards further development of its mobile network, fixed-value propositions and joint-ventures in digital content, Sultan said.
The past year saw capital expenditure of Dh2.4 billion on network development and upgrades.
Another revenue stream for du in coming months will be mobile number portability, by which mobile users in the country can switch operators without changing even the prefix of their respective numbers. "Things are almost ready," Sultan said when asked about progress.
Challenge
While du has achieved significant growth in mobile revenue and new subscribers, maintaining these numbers looks challenging, analysts say.
"The rates of mobile penetration in the UAE are already very high. But du is well placed to benefit from a number of changes that are slated for the UAE market over the coming year or so: the introduction of mobile number portability; competition in the broadband market; and freer competition between the operators in pricing," said Matthew Reed, regional senior analyst at Informa Telecoms & Media, the industry research provider.
