Emirates Integrated Telecommunications Co. (DU), known as Du, said first-quarter net profit before royalty surged 61.8 percent as revenues from mobile and data services grew.
Net income for the period rose to 666 million dirhams ($181 million) from 412 million dirhams in the same period last year, the company said in a filing to the Dubai Financial Market. Revenue from mobile increased 21.8 percent to 1.9 billion dirhams.
The average estimate of three analysts was for a profit of 260 million dirhams, according to data compiled by Bloomberg. The company booked 50 percent of its profit as a provision for royalty payment to the government, it said.
Du competes with Emirates Telecommunications Corp. (ETISALAT), 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’s total revenue increased 20 percent in the quarter to 2.4 billion dirhams, it said. The telephone company added 320,600 mobile subscriptions in the period, bringing its number of mobile lines to 5.5 million. Fixed-line customers grew 13.5 percent to 545,300.
Du shares closed 0.3 percent lower yesterday, giving the company a market value of 14.1 billion dirhams. The stock has gained 6.6 percent this year.
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