Displaying items by tag: Osman Sultan

Emirates Integrated Telecommunications Company PJSC, the parent company of “du” and “Virgin Mobile UAE”, published its financial results for the quarter ended 30 September 2017, showing a 4 percent growth in net profit after royalty to AED 476 million.

Revenue was “stable” according to EITC chief executive officer, Osman Sultan, at AED 3.13 billion, compared to AED 3.14 billion in Q3 2016, as the company “invests in adjacent business areas to transition to its next phase of growth.”

“We continue to see pressure on mobile rates, with mobile revenue decreasing 3.3 percent to AED 2.30 billion,” said Mr. Sultan. “We remain on track with our strategy of attracting higher quality customers and are pleased to report that the post-paid segment increased 14 percent in Q3 2017 compared to the same period last year.”

Mr. Sultan added, “EBITDA was AED 1.33 billion in Q3 2017, compared to AED 1.38 billion for the same period last year, showing a decline year on year as the company invests in adjacent business areas to transition to its next phase of growth.”

Mr. Sultan highlighted the launch of Virgin Mobile UAE as an exciting milestone of Q3 for EITC. “Featuring an innovative, all-digital platform, Virgin Mobile is ushering a new era of connectivity and simplicity for our customers, while also reinventing the traditional telecom business to a more efficient and lower cost base operating model,” he said.

As the company looks towards a “smart future”, Mr. Sultan said EITC is investing in pushing forward its digital transformation agenda and driving the company to its next phase of growth as a fully integrated ICT player.

“Our increased reliance on the IoT has fundamentally changed the way people interact and we therefore must change the way we do business,” he said. “To this end, we announced a significant change in our organizational structure with the creation of three new business divisions to support EITC’s growth.”

Mr. Sultan added, “The newly formed ICT Solutions division will provide UAE government entities and enterprises with advanced end-to-end ICT infrastructure and services; the Digital Lifestyle and Innovation division will be focused on the development of innovative products and services for UAE consumers, including smart home services, and the Infrastructure division will consolidate all infrastructure, network and data center operations under the EITC umbrella.”

As part of the new organizational model, Mr. Sultan announced the nominations of Fahad Al Hassawi and Farid Faraidooni as Deputy CEOs, each with oversight and mandate on specific areas. “I have the upmost confidence that together we will successfully drive EITC’s transformation agenda and allow expansion into new areas of growth,” he said.

Published in Finance

Emirates Integrated Telecommunications Company PJSC (“du”) published its financial results on July 25 for the quarter ended 30 June 2017, and announced its plans to distribute AED 589.3 million of interim dividends to its shareholders for the first half of 2017 at 13 fils per share, subject to approval at the General Meeting in September 2017.

In its published financial results for the second quarter of 2017, the company delivered AED 3.26 billion in Revenue, up 6.2% from AED 3.07 billion in Q2 2016. Net Profit before royalty was AED 974 million for the period.

“EITC has made steady progress in the second quarter of 2017, with a 6.2% increase in Revenue and a slight improvement in Net Profit,” said CEO Osman Sultan. “Driven by growth in handset sales, wholesale and fixed revenues, total Revenue reached AED 3.26 billion in Q2 2017, representing a 6.2% increase over the same period last year. Revenue has also shown growth over the first six months of the year with a 4.3% increase to AED 6.42 billion.

Mr. Sultan added that the company’s mobile customer base increased 1.5% during Q2 2017 to 8.2 million customers, up from 8.1 million in Q2 2016. This was largely due, he said, to the company’s strategy of focusing more on attracting and retaining higher quality customers, with solid growth in post-paid customer additions.

Despite a steady performance during the quarter and the first half of the year, EITC continues to be impacted by challenging market conditions, Mr. Sultan added, with pressure on mobile rates and data monetization. Consequently, EBITDA and Net Profit stand at the same level as Q2 2016.

“Looking towards a smart future, we have made further investments into Smart Dubai, the Virgin Mobile brand and adjacent markets,” he said. “We will continue to invest in the future generation capacity of the business; EITC is a digital enabler and will be able to create new revenue opportunity as digital transformation for both consumers and enterprises opens up new markets.”

A major highlight for the second quarter of the year for EITC was its progress with the introduction of the Virgin Mobile brand. During the period, the company began a program of pre-launch customer registration and conducted trial tests.

“We enrolled a few select number of UAE residents to test the product and its customer service, and are happy with the feedback received,” said Mr. Sultan. “We look forward to the full commercial launch of the Virgin Mobile brand in the UAE soon, and with it, bringing a fully digital and premium customer experience.”

He concluded, “Our results are backed by our commitment to the future development of a digitally-enabled ecosystem. During the period, we achieved a milestone development in connectivity technology, with the successful testing of a 5G solution that will significantly upgrade connectivity speed for our users. With this initiative and more to come, we remain committed to a smart future, and the Government’s vision for a smart nation.”

Published in Finance