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UAE TELCO DU CONNECTS WITH DH370M NET PROFIT FOR Q1-2023, AS POST-PAID
SUBSCRIBERS SWELL
--------------------------------------------------------------------------------
BUSINESS
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UAE TELCO DU CONNECTS WITH DH370M NET PROFIT FOR Q1-2023, AS POST-PAID
SUBSCRIBERS SWELL
Net profit is up 19% boosted in part by post-paid subscriber growth
--------------------------------------------------------------------------------
Published: May 03, 2023 09:15 Last updated: May 03, 2023 10:04 Gulf News
Report
--------------------------------------------------------------------------------
On post-paid subscriptions, du recorded a seventh straight quarter of gains.
That will help stoke more gains on its short-term financials. Image Credit:
Ahmed Ramzan/Gulf News
Dubai: The UAE telco du connected with a 19.1 per cent increase in Q1-2023 net
profit, to total Dh370 million, while subscriber numbers reached 8.2 million.
What’s particularly impressive is the intake of post-paid subscribers, which at
48,000 meant a seventh consecutive quarter of net additions. At the end of
March, du had 1.5 million of these subscribers, a tally that should reflect well
on future financials. (du says the increases are brought on by demand for its
‘unlimited data power plans’.)
According to Fahad Al Hassawi, CEO, “Our commercial momentum remains intact and
our portfolio of products and services continues to attract customers across all
units. We continued growing our broadband customers base by adding 18,000 home
wireless and fibre clients.
“We delivered a remarkable performance in the first quarter with double-digit
revenue growth. While we continue to seek revenue growth and improve our market
position, we are determined to improve profitability.”
REVENUE UPTURN
Revenues in the January-March phase grew 10 per cent to Dh3.44 billion. Mobile
service revenues remained on recovery track - the 'excellent performance of the
postpaid segment drove a revenue growth of 6.3 per cent to Dh1.49 billion.
Fixed services revenues were up 15 per cent to Dh936 million on
'sustained demand from consumer and enterprise customers'. Service revenues were
up 9.5 per cent to Dh2.42 billion, while other revenues grew 11.2 per cent to
Dh1.01 billion due to a 'recovery in handset sales and sustained growth of our
ICT unit'.
> AS WE TRANSITION TO A DIGITAL-FIRST TELECOM OPERATOR, OUR INFRASTRUCTURE
> INVESTMENTS REMAIN A KEY ELEMENT
> TO PROVIDE BEST-IN-CLASS CUSTOMER EXPERIENCE
>
> - Fahad Al Hassawi of du
Handset revenues increased 30.4 per cent to Dh282 million on improved supply
chain and higher availability of smartphones. (Retail sector sources confirm the
sizeable interest in smartphone upgrades among resident consumers and visitors
through the first quarter.)
The company's capex spend totalled Dh408 million (with a 'capital intensity' of
11.8 per cent). "Our spend during the quarter was focused on expanding our fibre
network and our ongoing IT transformation," du said in a statement.
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