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Du Q4 profit falls 43 per cent, beats forecasts
2013 full year profit 1.99 bln dirhams vs 1.98 bln dirhams in 2012
February 18, 2014 9:13 by Reuters
Du, the UAE’s No.2 telecom operator, reported a 43 per cent fall in fourth-quarter profit yesterday, beating analysts’ estimates as mobile data revenue rose.
The firm, which ended rival Etisalat‘s domestic monopoly in 2007, made a net profit of 570 million dirhams in the three months to Dec. 31. This was down from 994 million dirhams in the year-earlier period, Reuters calculated based on du’s previous financial results, when the company wrote back some tax provisions.
Du said in a separate statement its board had approved a cash dividend of 0.19 dirhams per share.
UAE telecom operators are taxed via royalties under licenses from the federal government. The latter announced a new formula in December 2012 that includes a levy on revenue as well as profit and steadily increases the level of taxation on du to eventually reach parity with longer-established rival Etisalat.
Du said it paid an extra 183.5 million dirhams in royalties in 2013 compared with a year earlier.
The company’s full-year profit for 2013 was 1.99 billion dirhams, up slightly on 2012.
Fourth-quarter revenue was 2.87 billion dirhams, up 8.3 per cent from a year earlier.
Annual revenue rose 9.7 per cent to 10.8 billion dirhams.
Mobile data revenue increased 34 per cent to 2.36 billion dirhams last year, with data now accounting for 28 per cent of mobile revenue, up from 23 per cent in 2012.