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44937
Tue, 02/10/2009 - 13:23
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https://oananews.org//node/44937
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UAE's mobile operator du announces 2008 profits
Dubai, February 10, 2009 (WAM) - UAE mobile operator Du yesterday said it recorded a net profit for the first time in 2008 since launching in February 2007, beating the expectations of many analysts.
A statement by the UAE' second-largest mobile operator said it made a net profit before Royalty of Dh8 million ($2.18million) for the full year 2008.
The telecom firm also said it had doubled mobile phone subscriptions compared to last year, with the number of its active mobile phone subscribers reaching 2.498 million. Fixed line subscription grew by 72% year-on-year to 280,000 active subscribers.
Its fixed-line subscribers advanced 72 percent year-on-year to to 280,000 active subscribers Highlights for the fourth quarter: 628,000 mobile customers added during the quarter Total revenues for the quarter reached Dh1,227 million, nearly double those for the same period in 2007 (Dh640 million) Gross margin of 66%, up from 58% in Q4 2007 Earnings before interest, tax, depreciation and amortisation (EBITDA ) of Dh236 million, compared to an EBITDA loss of Dh79 million in Q4 2007 Net profit of Dh78 million, up from a net loss of Dh147 million in Q4 2007 and more than double Q3 2008 profit of Dh31 million Highlights for the full year: 1,881,000 mobile customers acquired, with total active mobile subscribers increasing by 104% year-on-year to 2,498,000.
72% growth in du's fixed line subscriber base from 163,000 to 280,000 active subscribers Total revenues more than doubled to Dh3,951 million compared to Dh1,537 million for 2007 Gross margin of 64%, up from 56% in 2007 EBITDA reached Dh368 million, up from an EBITDA loss of Dh706 million for FY 2007.
Net profit before Royalty of Dh8 million up from a net loss of Dh885 million in FY 2007.
Commenting on the results, Ahmed Bin Byat, Chairman of du, said, "2008 was a year of milestones for du. Not only did we record a net profit for the first time - a substantial achievement in its own right - but we did this well ahead of expectations. In December, we passed the three million customers mark, more than doubling our customer base in less than a year. This is truly exceptional performance and testament to the hard work and dedication of du's management and employees.
"We start 2009 stronger than ever before, but mindful of potential challenges ahead. We are not complacent - either in terms of our market share or the global economic environment. We will continue our focus on innovation and value for money to develop and launch services that our customers want to use. As a result, I feel confident that du is well positioned to prosper throughout 2009 and beyond." Osman Sultan, du's Chief Executive Officer, said, "In less than two years, du has made remarkable progress. Throughout 2008, we built on the solid foundations already in place to grow our business substantially. Active mobile subscribers more than doubled year-on-year, with fixed line subscribers demonstrating strong growth. Furthermore, while we have upheld our quality offering and remained competitive on price, this has not been at the cost of profitability and the bottom line. In a mature telecoms market, we continue to offer our customers new and original packages that will also help grow our business across all segments." Focus on evolving du's existing offering, as well as pioneering new products and services to deliver innovative, tailor-made packages reaped rewards in 2008.
Overall revenues for FY 2008 grew by 157% year-on-year to Dh3,951 million, compared to Dh1,537 million for 2007. This growth was primarily driven by the strong growth in mobile revenues from new subscribers aided by continued growth in our fixed subscriber base.
A statement by the UAE' second-largest mobile operator said it made a net profit before Royalty of Dh8 million ($2.18million) for the full year 2008.
The telecom firm also said it had doubled mobile phone subscriptions compared to last year, with the number of its active mobile phone subscribers reaching 2.498 million. Fixed line subscription grew by 72% year-on-year to 280,000 active subscribers.
Its fixed-line subscribers advanced 72 percent year-on-year to to 280,000 active subscribers Highlights for the fourth quarter: 628,000 mobile customers added during the quarter Total revenues for the quarter reached Dh1,227 million, nearly double those for the same period in 2007 (Dh640 million) Gross margin of 66%, up from 58% in Q4 2007 Earnings before interest, tax, depreciation and amortisation (EBITDA ) of Dh236 million, compared to an EBITDA loss of Dh79 million in Q4 2007 Net profit of Dh78 million, up from a net loss of Dh147 million in Q4 2007 and more than double Q3 2008 profit of Dh31 million Highlights for the full year: 1,881,000 mobile customers acquired, with total active mobile subscribers increasing by 104% year-on-year to 2,498,000.
72% growth in du's fixed line subscriber base from 163,000 to 280,000 active subscribers Total revenues more than doubled to Dh3,951 million compared to Dh1,537 million for 2007 Gross margin of 64%, up from 56% in 2007 EBITDA reached Dh368 million, up from an EBITDA loss of Dh706 million for FY 2007.
Net profit before Royalty of Dh8 million up from a net loss of Dh885 million in FY 2007.
Commenting on the results, Ahmed Bin Byat, Chairman of du, said, "2008 was a year of milestones for du. Not only did we record a net profit for the first time - a substantial achievement in its own right - but we did this well ahead of expectations. In December, we passed the three million customers mark, more than doubling our customer base in less than a year. This is truly exceptional performance and testament to the hard work and dedication of du's management and employees.
"We start 2009 stronger than ever before, but mindful of potential challenges ahead. We are not complacent - either in terms of our market share or the global economic environment. We will continue our focus on innovation and value for money to develop and launch services that our customers want to use. As a result, I feel confident that du is well positioned to prosper throughout 2009 and beyond." Osman Sultan, du's Chief Executive Officer, said, "In less than two years, du has made remarkable progress. Throughout 2008, we built on the solid foundations already in place to grow our business substantially. Active mobile subscribers more than doubled year-on-year, with fixed line subscribers demonstrating strong growth. Furthermore, while we have upheld our quality offering and remained competitive on price, this has not been at the cost of profitability and the bottom line. In a mature telecoms market, we continue to offer our customers new and original packages that will also help grow our business across all segments." Focus on evolving du's existing offering, as well as pioneering new products and services to deliver innovative, tailor-made packages reaped rewards in 2008.
Overall revenues for FY 2008 grew by 157% year-on-year to Dh3,951 million, compared to Dh1,537 million for 2007. This growth was primarily driven by the strong growth in mobile revenues from new subscribers aided by continued growth in our fixed subscriber base.
