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du sees 13.5% lower profit in Q3-19

du sees 13.5% lower profit in Q3-19
Revenues amounted to AED 3.066 billion in Q3-19
DU
DU
0.17% 5.99 0.01

Dubai – Mubasher: Emirates Integrated Telecommunications Co (du) reported a 13.5% year-on-year drop in net profits attributed to shareholders during the third quarter of 2019.

The profits totalled AED 381.2 million ($103.8 million) in Q3-19 when compared to AED 440.8 million ($120.03 million) in the corresponding quarter in 2018, du disclosed on Wednesday.

Revenues amounted to AED 3.066 billion in Q3-19, down from AED 3.33 billion in the year-earlier period.

During the period from January to September 2019, du’s profits tumbled to AED 1.294 billion, 8% lower than AED 1.406 billion in the corresponding period in 2018.

The decrease in profit was not only attributed to lower revenues by 6% but also a higher provision of impairment of trade receivables and contract assets by 17% to AED 218.1 million in the January-September 2019, compared to AED 186.8 million a year earlier.

In addition, the drop was due to higher financing costs by 32% year-on-year to AED 99.9 million in the nine-month period in 2019 from AED 75.5 million.

It is worth pinpointing that over the second quarter of 2019, du’s profit attributed to shareholders rose by 2.5% year-on-year to AED 464 million ($126.3 million) from AED 453 million ($123.31 million) on higher revenues from landline businesses.

Translated by: Amal A. Wahaab