du published its financial results for the first quarter of 2016 registering a 1.3% rise in revenue to AED 3.09 billion, while net profit before royalty rose by 10.4% to AED 1.02 billion.
The report said the revenue grew to AED 3.09 billion, a 1.3% increase compared to 2015 (AED 3.05 billion). Net profit before royalty grew 10.4% to AED 1.02 billion compared to 2015 (AED 925.0 million). Net profit after royalty stood at AED 480.1 million, down from AED 487.1 million in 2015 due to an increase in year-on-year royalty of 23.6%.
It noted that the mobile revenue totaled AED 2.21 billion, a 0.9% decrease on Q1 2015 (AED 2.23 billion), while mobile data revenue increased by 8.9% to AED 779.0 million from Q1 2015 (AED 715.6 million).
The report said fixed revenue climbed 2.3% to AED 630.3 million compared to Q1 2015 (AED 616.1 million). Mobile data now represents 34% of mobile service revenues compared to Q1 2015 (30.9%).
Commenting on the results, Osman Sultan, du's chief executive officer, said: "We continued to make progress during the quarter, delivering the right mix of products and services to the market, and ensuring an even better customer experience. Operationally, we are executing our strategy at speed at a time when demand for digital services and data is growing rapidly."
He added: "Data has become a cornerstone of our business and the appetite for connectivity remains robust. Mobile data revenue increased during the first three months of the year, while total data usage grew exponentially during the same period. With a growing mobile subscriber base of more than 8 million, it is clear that our customers appreciate the value of du products and services. Quality growth remains a key focus for du and a 10.1% year-on-year rise in the number of postpaid subscribers in the first quarter shows our strategy is on the right track."
"We continue to align our business with the UAE's Smart Government initiative in accordance with Vision 2021. We see Smart City as a vital component of the UAE's drive to become a leading integrated technology provider. We are truly excited by the opportunity to help make this a reality," Sultan added.