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Oct. 31 (Bloomberg) -- Du, the United Arab Emirates’ second-biggest phone company, reported a 50 percent jump in third-quarter profit, beating analysts’ estimates, after revenue and subscribers increased.
Net income before royalties advanced to 489 million dirhams ($133 million) from 326 million dirhams a year earlier, Emirates Integrated Telecommunications Co., which operates under the brand Du, said in a statement to the Dubai bourse today. Revenue rose 28 percent to about 2.2 billion dirhams.
Du added 162,000 mobile-phone subscribers in the quarter to about 4.9 million, while the number of fixed-line users increased 24 percent to 639,700, the company said.
Du competes with Emirates Telecommunications Corp., also known as Etisalat, and has gained market share in the U.A.E., the second-biggest Arab economy, since it began operations in 2007. Du said today it held a 45 percent share of the mobile market in the U.A.E at the end of September.
Shuaa Capital estimated Du would post a profit for the quarter of 212 million dirhams and EFG-Hermes predicted 225 million dirhams, according to data compiled by Bloomberg. The profit was before the company set aside 50 percent of net income as a royalty payment to the government, Du said.
Du shares gained 3.2 percent this year compared with a 7.4 percent fall by Etisalat, whose third-quarter profit declined 1 percent to 1.72 billion dirhams.
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