UAE telecom operator du reports 11.4% increase in net profit for Q2 2021

UAE telecom operator du reported a net profit of Dhs240m for Q2 2021, up from Dhs215m during Q2 2020, marking an 11.4 per cent rise year on year.

The company reported Dhs2.85bn in revenues for the same period, recording a 7 per cent increase year-on-year on demand for 5G handsets and broadband services. Mobile revenues stood at Dhs1.295bn, fixed revenues totaled at Dhs687m while other revenues equalled Dhs873m.

Meanwhile, its EBITDA for Q2 2021 stood at Dhs1.13bn growing 7.3 per cent through cost saving initiatives and lower provisions, a statement said.

The company’s capital expenditures for the second quarter of the year totaled Dhs649m as the company continues its infrastructure modernisation plan. Based on company results, the board of directors approved an interim dividend of Dhs0.10 per share.

The company’s customer base grew 2.3 per cent to 6.6 million. Growing interest in 5G devices as well as financing solutions for postpaid customers continue to fuel demand for handsets, the statement added.

Fahad Al Hassawi, its CEO said: “We delivered a 7 per cent growth in revenues. More significantly, I am very pleased that we stemmed the decline in mobile service revenues. We remain vigilant on our cost base as cost reduction initiatives helped push EBITDA and net profit up 7 per cent and 11 per cent respectively. With our customers in mind, we invested Dhs649m on our infrastructure as we seek to better serve them.

“Our postpaid customers’ interest in 5G handsets is growing and we have responded with a corresponding handset financing solution. In addition, our innovative broadband offers continue to generate interest and fuel growth. This helped us accelerate the pace of broadband net-adds. When it comes to digital connectivity, UAE consumers increasingly seek a provider with tariff plans that are easy to understand and who cares for its customers. I believe we are uniquely positioned to be their provider of choice.”