Telecoms company Du announces first-quarter results and plans for next two years
UAE-based telecommunications company Du will focus on diversifying its revenue streams through data centres and providing managed services for the region.
The operator is working with its partners to launch these new services over the next two to three years, according to Raghu Venkataraman, chief strategy and investment officer at Du.
“There is an obligation to capture more value and new growth will be in new domains,” says Venkataraman. “We are not looking to jump into territories where we are not experts, these new services are a work in progress, currently in the incubation phase. “ he adds.
Du announced its first-quarter results on 25 April. Revenues grew by 29 per cent year-on-year to AED2bn ($544m). Mobile data revenue more than doubled from AED59m in the first quarter of 2010 to AED141m to contribute to 9 per cent of total revenue.
Net profit before royalty increased 112 per cent year-on-year to AED412m.
Du is investing AED477m in further infrastructure development, including the high-speed mobile broadband technology, long-term evolution (LTE). The company plans to launch the service in the third quarter of 2011, although it has not made any official announcements.
“We want to assess the most appropriate time to launch LTE. It comes down to how ready the market, infrastructure, devices and pricing package plans are,” says Osman Sultan, Du’s chief executive officer.
Du’s mobile subscriber base currently stands at 4.6 million, giving Du a market share of 41 per cent.