Profit at du, the UAE’s second largest telecoms provider, fell by 20.5 per cent during the fourth quarter as stable revenue and operating profit failed to offset a rise in royalty payments to the Federal Government.
The telco's profit fell to Dh367.8 million for the three months to the end of December, compared with Dh462.4m during the same period the previous year, according to calculations made by The National. Du did not provide a breakdown of fourth-quarter results. The results came in well below an average of Dh462.7m forecast by analysts surveyed by Bloomberg.
Du announced preliminary unaudited annual profit of Dh1.75 billion in a brief statement posted on the Dubai stock exchange website on Tuesday, a 10 per cent drop compared with Dh1.94bn in 2015.
The operator attributed the decrease, its second consecutive drop in annual profit, to a 10 per cent increase in royalty payments to the Government over the year. Earnings per share fell to 38 fils from 42 fils in 2015.
Revenues for the year rose by 3.2 per cent to Dh12.73bn from Dh12.34bn, while profit before royalty was unchanged at Dh3.86bn. Du attributed the rise in revenue to “an increase in subscribers”, giving no more details.
The company is due to provide a fuller breakdown of its results in the coming days.
Du’s finances have increasingly come under pressure from slowing revenue growth in an increasingly saturated UAE market, coupled with a steady rise in royalty payments demanded by the Federal Government.
Osman Sultan, the chief executive, said last month that the operator had begun restructuring some of its business lines during the first half of last year, with “tens” of jobs being cut to streamline operations.
The operator last month unveiled a licensing agreement with the international mobile brand Virgin Mobile in a fresh attempt to target the UAE’s high-spending youth segment. Services under the brand are likely to become available “within weeks”, according to Mr Sultan.
Both du and fellow UAE telco Etisalat are increasingly looking to bolster revenue from managed digital services for corporate customers, leveraging technologies including cloud computing, the Internet of Things, mobile applications and big data services.
Etisalat launched a dedicated business unit, Etisalat Digital, last October to tap this market, which it estimates could be worth Dh50bn in the next five to seven years.
Du’s shares, temporarily suspended during morning trade, closed on Tuesday up 0.8 per cent at Dh6. The operator’s shares, listed in Dubai, have fallen by 3.2 per cent so far this year, compared with a 3.5 per cent gain by the emirate’s headline index.
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Earnings reports
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■ Quarterly profit slips 9% for Amanat Holdings
■ Arkan Building Materials annual profit declines 25%
■ Damac Properties' fourth-quarter net profit rises 1.3%
■ Drake & Scull's 2016 net loss narrows to Dh787 million
■ Emaar Properties fourth-quarter net profit up 56%
■ Etisalat profit edges up on growing UAE revenue
■ Manazel Real Estate profit rises 16% in second half
■ Marka will continue with cost-cutting after second straight annual loss
■ Union National Bank's fourth-quarter profit rises 29%, missing forecasts
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jeverington@thenational.ae
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Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EDirect%20Debit%20System%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20Sept%202017%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20with%20a%20subsidiary%20in%20the%20UK%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20Undisclosed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Elaine%20Jones%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3C%2Fp%3E%0A
The specs: 2018 Mazda CX-5
Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
Fuel consumption, combined: 7.1L / 100km
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Company%20profile
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Company%20Profile
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Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.
The chef's advice
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
COMPANY%20PROFILE
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The%20specs
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COMPANY%20PROFILE
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Biog
Age: 50
Known as the UAE’s strongest man
Favourite dish: “Everything and sea food”
Hobbies: Drawing, basketball and poetry
Favourite car: Any classic car
Favourite superhero: The Hulk original
Sly%20Cooper%20and%20the%20Thievius%20Raccoonus
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