Emirates Integrated Telecommunications Company PJSC (“du”) publishes Q3 2014 Results
·
Q3 revenues of AED 3.03 billion, a 15% increase on Q3 2013
·
Q3 Net Profit before Royalty of 972 million, a 27% increase on Q3 2013
Dubai, 28 October 2014
–
Emirates Integrated Telecommunications Company PJSC (“du”) today
announced its financial results for the third quarter of 2014 continuing
the trend of robust growth in revenues and solid
performance on all main indicators.
Key
drivers behind du’s solid performance include 36% growth in fixed
revenue from Q3 2013 as well as 9% year-on-year growth in Mobile
revenue. du continues to deliver world class customer service,
shareholder value and contribute to the growth of the UAE’s economy.
Du’s
fourth quarter is likely to be affected by the expected network sharing
announcement that will see du and its competitor share fixed network
infrastructure with competitor by the end of this
year. This move will result in direct competition between the pair on
landline and internet service, increasing du’s potential to gain market
share as du’s current fixed infrastructure is confined to new
developments in Dubai.
Financial Highlights for Q3 2014:
·
Revenues grew to AED 3.03 billion; a 15% increase against Q3 2013 (AED 2.64 billion)
·
EBITDA increased 21% compared to Q3 2013 to AED 1.29 billion from AED 1.06 billion
·
Net profit before Royalty grew 27% to AED 972 million versus Q3 2013 (AED 768 million)
·
Net Profit after Royalty in Q3 2014 grew to AED 559 million, a 18% increase on Q3 2013 (AED
474 million)
Revenue Breakdown:
·
Mobile revenue reached AED 2.24 billion, a 9% increase year-on-year (AED 2.05 billion)
·
Mobile data revenues increased by 11%, from AED 616 million in Q3 2013 to AED 684 million
·
Fixed revenue increased by 36% to 598 million compared to 439 million in Q3 2013
·
Data represents 30% of mobile service revenues, up from 29% in Q3 2013
Osman Sultan, du’s Chief Executive Officer, commented:
"I am pleased to report another quarter of solid growth. These
results show that by continuously developing innovative propositions to
meet our customers’ requirements and rigorously implementing our
efficiency strategy, we are able to deliver more value
and steady growth, despite a highly competitive environment.
“Our
strong performance is reflected in our net profit before royalty, which
was up 27% on 2013 at AED 972 million. EBITDA for the quarter reached
AED 1.29 billion, an increase of 21% compared to
the same quarter last year. Data continued to be a key market driver
during the quarter which translated into data revenues of AED 684
million in Q3 2014, an 11% increase on Q3 2013 as our customers’ demand
for connectivity remained strong. The world is evolving
to incorporate integrated digital services into a commodity that is
used throughout every aspect of our daily lives. The issue for the
industry however, remains our ability to monetize data. This challenge
is one we are focused on, through the development
of innovative service provisions for our customers.”
A
key focus du over the coming months and further into 2015, is the
Company’s contribution to the transformation of Dubai into a Smart City.
As such, du recently announced that they are to be the
official wifi partner for the initiative that will include the
provision of free wifi across 100 Dubai and Abu Dhabi locations.
Q3 2014 Results Analysis
Total Revenue
Revenues
grew to AED 3.03 billion, the second consecutive quarter revenue has
exceeded AED 3 billion, and a 15% increase against Q3 2013 (2.64
billion). This increase was driven by consistent data
revenues and a continued focus on the post-paid segment.
Mobile
revenue grew to AED 2.24 billion, a 9% increase year-on-year (AED 2.05
billion). Fixed revenue increased by 36% to 598 million compared to 439
million in Q3 2013.
The company remains focused on innovation and improving service experience to retain high value customers across all segments.
Mobile and Fixed Customer
The
company is proud to now serve a total of approximately 7.5 million
active mobile subscribers. The steady increase of the total mobile
subscriber base year-on-year is an acknowledgement of du’s
attention to product innovation and customer service.
ARPU
dropped slightly in Q3 2014. To address this issue, the company has
placed focus on data revenue and increasing the proportion of post-paid
customers. du continues to experience pricing pressures
from competitors and the popularity of VOIP services, a trend the
entire industry is facing. ARPU is expected to remain steady over the
coming quarters.
Mobile Data (AED Million)
Mobile data revenue increased 11% to AED 684 million in Q3 2014 from AED 616 million in Q3 2013.
A
key challenge facing the industry is the difficulty in monetizing data
services. Du is working towards solutions to this issue and as such,
there are likely to be further developments in services
for customers focused on driving revenue in this area.
EBITDA (AED Million)
EBITDA in Q3 2014 increased 21% compared to Q3 2013 to AED 1.29 billion from AED 1.06 billion.
Net Profit Before Royalty
Du
demonstrated continued growth in net profit. Net Profit before Royalty
grew 27% to AED 972 million versus Q3 2013 (AED 768 million), whilst Net
Profit after Royalty in Q3 2014 increased to AED
559 million, a 18% increase on Q3 2013.
