Du’s post-paid base is just three per cent; but op looks to grow this

The UAE’s second telecoms operator Du today reported that revenues grew 12.4 per cent quarter-on-quarter during Q209 to reach AED1.31 billion (US$357 million). In Q208 Du generated revenues of AED907.8 million, with the growth in top-line business being attributed to the growth in mobile subscribers, as well as a strong performance from the wholesale business.

Net profit before royalty exceeded AED100 million for the first time, reaching AED115.3 million for the period. This compares to AED46.7 million in Q1 and a net loss of AED43.9 million in the second quarter of 2008.

Osman Sultan says Du shall be focussing on growing its post-paid subscriber base for the rest of this year

“For 2009 onwards, we are focused on growing significantly the proportion of Du’s high end, post-pay customer base. We made our first steps in this direction in April with the launch of our post-paid Elite and Premier Plans and have already started seeing the benefits of this strategic move with strong take up of both this quarter,” commented Osman Sultan, Du’s CEO. “In line with Du’s strategy of increasing transparency for its investors, having been the first to define and disclose its active customer base, we are releasing our pre- and post-pay mobile subscriber additions for the first time this quarter.”

Active mobile subscribers in the quarter increased to 2.9 million following the net addition of 155,900 subscribers over the period. Mobile revenues reached a record high of AED881.6 million in Q209, an increase of 11 per cent over Q109 and 48 per cent year on year.

Du disclosed that it added 16,700 post-paid mobile subscribers during the Q209, a significant increase over previous periods and a result of a post-paid marketing focus. The operator also added 139,200 prepaid mobile subscribers over the period.

Post-paid customers still represent a small proportion of Du’s overall mobile customer base at three per cent.

Revenues for Du’s fixed business, including fixed telephony, TV and broadband, amounted to AED242.6 million, up a mere five per cent year-on-year, reflecting 328,500 lines.

EBITDA increased to AED242 million up 52 per cent quarter-on-quarter, representing 18 per cent of revenues, up from 14 per cent in Q109.

Du’s capital expenditure programme is anticipated to exceed AED 2 billion in 2009, with AED404.5 million accounted for during Q209 bringing year to date expenditure to AED1.04 billion.