Business | Telecoms
du's revenue rises 20% to Dh908m
du on Thrusday reported Dh908 million revenue in the second quarter and said its subscriber base increased 32 per cent from previous quarter.
- By Nadia Saleem, Staff Reporter
- Published: 12:44 July 24, 2008
Dubai: du on Thrusday reported Dh908 million revenue in the second quarter and said its subscriber base increased 32 per cent from previous quarter.
The second quarter revenue increased 20 per cent. Compared to same period last year, the jump in revenues was 200 per cent, the company said.
Mobile revenue was reported at Dh670 million, an increase of 20 per cent from the previous quarter and a 341 per cent increase from the same period last year.
"Our share in the mobile market is estimated at close to 30 per cent in regard to active subscribers," said Osman Sultan, du's chief executive.
"We are ahead of our plan to reaching profitability," Sultan said. He said the company expects to make a profit in the first quarter of 2009 or in last quarter of this year.
du made a quarterly loss of Dh44 million compared with Dh62 million in the first quarter. Its loss in the second quarter of 2007 was Dh281 million.
The company's total number of mobile customers at the end of the second quarter crossed 2.3 million, an addition of 500,000 since March this year. Its active subscribers reached 1.85 million at the end of June.
"Based on our forecasts, the revenues are above expectations," Irfan Ellam, equity research analyst at Al Mal Capital Research, told Gulf News.
"The active number of mobile subscribers is where most of the revenue is coming from," he said, adding that of the total quarterly revenue, Dh670 million was from the 1.85 million mobile subscribers.
"It appears as if du is capturing quite a lot of the new customers that are coming into the UAE. The aggressive marketing that the company is carrying out looks to be paying off for them," Ellam said.
Fixed line revenue was reported at Dh208 million, an increase of 23 per cent from the previous quarter.
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