Dubai-Mubasher: MubasherTrade Research (MTR) fixed the price target (PT) of UAE telecom operator du at AED 6.23, while maintaining “Buy” recommendation, according to a report.
du reported a 0.9% decline year-on-year in net profits before royalty to AED 970 million in Q2-16, while net profits after royalty dropped 11.3% year-on-year to reach AED 445 million.
Net earnings came below MTR estimates of AED 481 million (-7.3%), but almost in line with consensus of AED 460 million (-3.1%).
“In 2015, du was subject to royalty fees of 12.5% on regulated revenues and 30.0% on regulated profit after deducting royalty on licensed revenues,” the statement said, adding that “In 2016, du is subject to royalty fees of 15% and 30.0%, respectively.”
"Total revenues missed estimates (-9.5% vs. MTRe; -3.0% vs. consensus) and decreased slightly by 0.8% year-on-year to AED 3.07 billion, due to 2.3% year-on-year decline in mobile revenues to AED 2.18 billion (71% of total revenues) despite the increase in mobile subs by 10.1% year-on-year to 8.1 million subs.,” according to the report
