Du’s start to 2010 is an accomplished one

The UAE’s second telecom provider Du today announced its financial results for the first quarter of 2010, showing a robust start to the year achieving the company’s highest revenue for a quarter ever and sustained mobile subscriber additions.

Highlights included total revenue amounting to AED 1.58 billion (US$430.5 million), a 36 per cent increase compared to Q109 and a three per cent increase quarter-on-quarter. Gross margin grew by 34 per cent year-on-year to AED 1.042 billion and five per cent quarter-on-quarter, while net profit before royalty came in at AED 194 million, up from AED 47 million a year earlier.

262,000 active mobile subscribers were added during the quarter taking the total number at the end of the period to 3.74 million. 26,900 additions during the quarter were post-paid.

A growth rate of 47 per cent was recorded in Du’s fixed line subscriber base from 310,900 lines in Q109 to 456,700 lines in Q110, and 50,900 lines added during the quarter.

Revenues for Du’s fixed business, including fixed telephony, TV and broadband, amounted to AED 265 million, a 15 per cent year-on-year improvement and a 4 per cent quarter-on-quarter increase.