Emirates Integrated Telecommunications Company, also known as du, reported a 13.5 per cent slide in its third quarter net profit as revenue and mobile subscriptions fell.
Net profit after royalty payments for the three months ending September 30, reduced to Dh381 million, the telecoms firm said in a statement. Total revenue for the third quarter dropped to Dh3 billion, a 7.9 per cent decline from a year earlier.
Fixed-line customers grew 1.5 per cent to 771,000 during the third quarter but the number of mobile subscribers slipped 10.6 per cent to over 7.7 million.
“We were able to achieve this result despite several challenges in our market where certain of our business lines which reached maturity are subject to pressure on their top line,” said Osman Sultan, chief executive of EITC.
Mr Sultan said du will continue its transformation efforts to cope with a changing business paradigm and increase the efficiency of the business.
During the nine-month period, du’s net profit after royalties dropped 7.9 per cent to Dh1.29bn, year-on-year. Revenue plunged 6.2 per cent to Dh9.4bn during the period.
The telecom firm accelerated deployment of 5G network during the third quarter to advance its digital strategy and attract more customers.
“Our capex for the first 9 month-period increased 82 per cent compared to same period last year to reach Dh799m almost doubling the capital intensity of the business. These continuous investments confirm our commitment to provide our customers with the latest technologies and products and our regular efforts towards improving customer experience.”
The company will continue to focus its efforts on attracting high value postpaid mobile customers to improve the mix of its mobile subscriber base amounting to 7.74m subscribers, according to the statement.
Du last month announced the appointment of industry veteran Johan Dennelind as its chief executive, replacing Mr Sultan after almost 14 years at the helm of the company.
Mr Dennelind is currently group chief executive of Telia, the largest Nordic operator and one of the biggest global internet carriers, with €8bn (Dh32.8bn) of revenue operating across seven countries.
The new chief executive will take charge of the telecom operator in early 2020, the company said in a statement last month.
