By: Amr Adel
Dubai – Mubasher: du targets to achieve AED 1 billion ($272.5 million) in savings from the application of a programme that aims to maximize operational efficiency over three years, CEO Osman Sultan said.
The programme includes changes to its cost of sales, operational expenses and capital expenditure, Sultan added.
The company plans to increase mobile service revenues by boosting revenues from mobile data which now represents 33% of mobile service revenues.
du seeks to raise its non-traditional revenue streams outside the telecom sector through providing managed services, hosting data services, and cloud computing for companies, and other services related to smart cities, Sultan said.
The telecom operator is likely to raise its investments in network and infrastructure development to AED 1.8-2 billion in 2017, compared to AED 1.7 billion by the end of 2016.
du’s investments will be focused on the infrastructure of network and information systems, and new fields like smart city and smart services, Sultan added.
The company does not have any plans for any acquisition in sectors outside the scope of its main activities, he said, adding that there may be a soon acquisition or a merger.
The financial position of du is strong, and it has sufficient liquidity for paying franchise fees and dividends, and funding current investments.
The company’s total debts stood at AED 4.2 billion by the end of last year, representing 50% of the total assets.
du will launch its second brand Virgin Mobile within weeks, he said, adding that the former company signed a licensing agreement to use the brand in the UAE.
Translated by: Julian Nabil
