Du forecast to post first profit six months earlier than expected

UAE’s second mobile operator, du, is expected to post its first year-on-year net profit six months earlier than anticipated when it releases its Q308 financial results later this month, according to a Dubai-based investment advisory firm.

Du said last year it expected to become profitable in the first quarter of 2009 after having launched in February 2007, however, a forecast report by Al Mal Capital Research suggests the operator will announce third quarter profits of AED40.94 million (US$11 million) compared to the same period last year.

The report also forecasts that du’s revenue will rise to AED937.69 million, an increase of 127.5 per cent year-on-year.

“This is the much-needed positive start they’ve been waiting for,” commented Alok Nawani, an analyst for Emaar Financial. “Du is the only way for foreign investors to get exposure to UAE telecoms since Etisalat does not allow foreign investors, so this is positive.”