du announces record Dhs13 billion in revenue for 2017

16/02/2018 05:45 AST

The Emirates Integrated Telecommunications Company (du), on Thursday published its financial results for 2017 and proposed a final annual dividend payment of Dhs997 million bringing the total annual dividend for the year to Dhs0.35 per share, of which Dhs0.22 per share is the final dividend payment for the year, subject to approval at the Annual General Meeting. Dhs0.13 per share was awarded as an interim dividend in October 2017.

Commenting on the results, Ahmad Bin Byat, du Chairman, said, "2017 was a strong year for our Company, with revenue reaching the mark of Dhs13 billion for the first year since inception. As a result of our solid financial performance and a good efficiency programme we can deliver on a sustainable dividend policy in spite of the increasing pressure on the margins of telco service providers globally.

"The successes achieved last year are an indication that the strategic transformation our company has undertaken is enabling us to adapt to the evolving industry and accommodate the changes in customer and business behaviour. Our strategic goals have the UAE at their core, contributing to the nation's sustainable growth through digital transformation. During 2017 we made good progress in this regard, having developed the Dubai Smart City platform, now fully operational, with core infrastructure in place and delivering.

Osman Sultan, du Chief Executive Officer, said, "Looking at our financial performance, I am pleased to report a record Revenue of Dhs13 billion for 2017, representing a 2.2 per cent increase over 2016. This comes as we continue to attract higher quality customers resulting in a 12.3 per cent growth in our post-paid segment during the year, stimulated by our increased focus on that segment. Revenue growth was also supported by a solid performance in our fixed line business.

Net Profit after Royalty had an excellent growth quarter on quarter, up 14.9 per cent in Q4 2017 to Dhs425 million, which helped maintain a stable annual Net Profit after Royalty of Dhs1.71 billion, recovering from a weak quarter in Q1 2017. "Growth was supported by the increase in revenue, improvement in gross margin and the impact of our cost optimisation programme. EBITDA margin is solid at 40 per cent for the year," Sultan explained.

The Gulf Today