By: Amr Adel
Dubai-Mubasher: Dubai-listed du is expected to see more declines in its profits throughout 2016, the telecom operator’s CEO Osman Sultan told Mubasher via phone.
The telecom operator reported AED 445.4 million profits in Q2-16, down 11.3% year-on-year, and registering a decline for the seventh successive quarter.
The rise in revenues during the previous two quarters did not compensate for higher royalties- or taxes- paid by du to the government, he said, adding that royalties will represent 56% of profits and revenues compared to 43% and 49% imposed in 2014 and 2015 respectively.
The UAE’s finance ministry previously set out a five-year timetable for du's royalty rates for the period from 2012 to 2016, which requires taxes of 15% on revenues and 30% on profits.
Du seeks to restructure its customer base as the pressures of “My Number, My Identity” campaign led to a suspension in the service for almost 1.1 million subscribers in 2015, Sultan highlighted.
Under the campaign, licensees Etisalat and du are updating subscribers’ data to ensure the transparency in dealing with mobile subscribers.
He noted that network sharing will not affect du’s investments of AED 1.7-1.9 billion, which will be pumped in infrastructure development projects.
Network sharing will raise the operators’ efficiency and cut operating costs, Sultan said.
Translated by: Julian Nabil
