Dubai Du's Q3 net profit plunges to $77mln on higher expenses

Revenue rose nearly 10% on higher sales

  
Investors are seen at the Dubai International Financial Market in Dubai, UAE February 7, 2018.

Investors are seen at the Dubai International Financial Market in Dubai, UAE February 7, 2018.

REUTERS/Satish Kumar

Emirates Integrated Telecommunications Co., or Du, saw its third-quarter net profit plunge nearly 66 percent to 283 million dirhams ($77.05 million) as operating expenses rose, offsetting a rise in revenue.

Operating expenses during the period rose to 2.26 billion dirhams from 1.97 billion dirhams a year earlier, the company said in a statement on Tuesday on the Dubai Financial Market, where it is listed.

Revenue rose nearly 10 percent to 2.87 billion dirhams due to higher handset sales and on mobile revenue from the postpaid segment, the company said.

However, EBITDA (earnings before interest, taxes, depreciation, and amortization) fell by 4.9 percent on year to 1.1 billion dirhams.

Fahad Al Hassawi, chief executive of Du, said he saw corporate demand for fixed services returning while commercial initiatives in mobile services are bearing fruits. Du's 5G network is now accessible to 90 percent of the population, he said.

"This quarter is an inflection point for mobile service revenues: we renewed with nominal growth (+0.7 percent quarter-on-quarter) after three consecutive quarters of decline," he said.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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