August 5, 2015 / 5:30 AM / 5 years ago

CORRECTED-UPDATE 1-UAE telco du Q2 profit falls 8 pct, in line with estimates

(Corrects 5th paragraph to show quarterly revenue rose, not fell)

* Q2 profit 502 mln dhs vs 547.7 mln dhs a yr ago

* Q2 revenue 3.09 bln dhs vs 3.02 bln dhs in 2014

* Proposes H1 dividend of 0.23 dirhams per share

By Matt Smith

DUBAI, Aug 5 (Reuters) - Du, the United Arab Emirates’ No.2 telecoms operator, blamed higher taxes as it reported an 8 percent fall in second-quarter net profit on Wednesday that was in line with analyst estimates.

The firm, which ended rival Etisalat’s domestic monopoly in 2007, made a net profit of 502 million dirhams ($136.7 million) in the three months to June 30, down from 547.7 million dirhams in the year-earlier period.

Analysts polled by Reuters on average forecast du would make a quarterly profit of 500.6 million dirhams.

Du has proposed a half-year dividend of 0.13 dirhams per share - up from 0.12 dirhams for the same period of 2014 - plus a special dividend of 0.1 dirhams per share, it said in a statement.

The company’s second-quarter revenue was 3.09 billion dirhams, up from 3.02 billion dirhams a year earlier.

Quarterly mobile revenue fell 1.4 percent year-on-year to 2.23 billion dirhams despite du’s mobile customer base expanding 2.7 percent to 7.36 million as of June 30.

Average revenue per user - a key industry metric - dropped to 92.6 dirhams from 96.8 dirhams a year earlier.

Data made up 31 percent of mobile revenue in the quarter, up from 29.4 percent a year earlier.

The company paid royalties - or tax - of 476.4 million dirhams in the three months to end June, up from 401.2 million dirhams in the prior-year period.

For 2014, du paid 10 percent of its regulated revenue, which excludes the likes of handset sales, and 25 percent of its regulated profit in royalties. These taxes have risen to 12.5 and 30 percent, respectively, this year.

$1 = 3.6730 UAE dirhams Reporting by Matt Smith; Editing by Prateek Chatterjee

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below