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116076
Sun, 04/11/2010 - 15:36
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https://oananews.org//node/116076
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du a star performer in posting 2009 growth
Dubai, April 11, 2010 (WAM)- The Emirates Integrated Telecom Company (du), was the star performer among peer companies in the GCC in 2009 as its net income rose by more than 6,000 per cent, according to a report, Emirates Business reported.
From around US$1.12 million (Dh4.11m) in 2008, du's net profits from operations and other sectors shot up to nearly US$71.89m in 2009, said the report by Kuwait's Global Investment House (GIH).
du, established three years ago, was among seven telecom companies in the GCC to report growth in their net earnings. Two of the 11 firms under the study saw a decline and the rest suffered losses. Their overall net earnings slipped by about 1.86 per cent in 2009 as losses and lower income in Kuwait and Qatar weighed on the earnings.
"The year 2009 witnessed a marginal decrease in the profitability of GCC telecom companies. Their aggregate net income for fiscal 2009 was US$7.64 billion, a 1.86 per cent decline from the 2008 profits of US$7.79bn," GIH said in the study sent to Emirates Business.
"This study covers 11 locally listed companies, of which three firms are from Saudi Arabia, two each from Kuwait, the UAE and Qatar, and one each from Oman, and Bahrain.
"From the 11, two companies saw a fall in their annual earnings while two firms incurred losses greater than the previous year. Seven companies managed to increase their annual profits in 2009 compared with the previous year."
Country-wise, Saudi Arabia's telecom sector contributed with 37.58 per cent to the total profits of the sector, with the aggregate profits of the three companies listed on Tadawul reaching US$2.87bn.
Its service providers posted a 14 per cent rise in their 2009 revenues while total sales jumped to SR67bn (Dh245.8bn) from SR58.8bn in 2008. Subscriptions for mobile phones increased to around 44.8 million while demand for broadband internet more than doubled to 2.75 million subscribers.
The UAE came second in terms of profit contribution, with its two telecom companies' share in overall profits reaching 32.40 per cent.
"du achieved the highest increase in annual profits compared to its GCC peers. du's 2009 profits jumped by a whopping 6,304 per cent when compared to the corresponding period of the previous year due to a surge in mobile users. Over the year, du added a further 1.01 million customers with the total active subscriber base at 3.47 million."
In Kuwait, Zain announced that its 2009 net profit plunged by 39.4 per cent to KD195m (Dh2.4bn) from KD322m in 2008. Earnings per share for 2009 dropped to 51 fils from 88 fils. On the other hand, both Zain Saudi and Vodafone Qatar deepened their annual losses. Zain Saudi reported an annual loss of US$826.13m in 2009 compared to a loss of US$607.25m in 2008.
Vodafone Qatar, which last year broke the monopoly of state-controlled Qatar Telecom, posted nine-month net loss of US$136m in 2009, compared to a loss of US$10.96m in the same period of 2008.
In Oman, the telecom operator's net income swelled by around 21 per cent while there was a slight rise of 0.8 per cent in Bahrain. – Emirates Business 24|7
From around US$1.12 million (Dh4.11m) in 2008, du's net profits from operations and other sectors shot up to nearly US$71.89m in 2009, said the report by Kuwait's Global Investment House (GIH).
du, established three years ago, was among seven telecom companies in the GCC to report growth in their net earnings. Two of the 11 firms under the study saw a decline and the rest suffered losses. Their overall net earnings slipped by about 1.86 per cent in 2009 as losses and lower income in Kuwait and Qatar weighed on the earnings.
"The year 2009 witnessed a marginal decrease in the profitability of GCC telecom companies. Their aggregate net income for fiscal 2009 was US$7.64 billion, a 1.86 per cent decline from the 2008 profits of US$7.79bn," GIH said in the study sent to Emirates Business.
"This study covers 11 locally listed companies, of which three firms are from Saudi Arabia, two each from Kuwait, the UAE and Qatar, and one each from Oman, and Bahrain.
"From the 11, two companies saw a fall in their annual earnings while two firms incurred losses greater than the previous year. Seven companies managed to increase their annual profits in 2009 compared with the previous year."
Country-wise, Saudi Arabia's telecom sector contributed with 37.58 per cent to the total profits of the sector, with the aggregate profits of the three companies listed on Tadawul reaching US$2.87bn.
Its service providers posted a 14 per cent rise in their 2009 revenues while total sales jumped to SR67bn (Dh245.8bn) from SR58.8bn in 2008. Subscriptions for mobile phones increased to around 44.8 million while demand for broadband internet more than doubled to 2.75 million subscribers.
The UAE came second in terms of profit contribution, with its two telecom companies' share in overall profits reaching 32.40 per cent.
"du achieved the highest increase in annual profits compared to its GCC peers. du's 2009 profits jumped by a whopping 6,304 per cent when compared to the corresponding period of the previous year due to a surge in mobile users. Over the year, du added a further 1.01 million customers with the total active subscriber base at 3.47 million."
In Kuwait, Zain announced that its 2009 net profit plunged by 39.4 per cent to KD195m (Dh2.4bn) from KD322m in 2008. Earnings per share for 2009 dropped to 51 fils from 88 fils. On the other hand, both Zain Saudi and Vodafone Qatar deepened their annual losses. Zain Saudi reported an annual loss of US$826.13m in 2009 compared to a loss of US$607.25m in 2008.
Vodafone Qatar, which last year broke the monopoly of state-controlled Qatar Telecom, posted nine-month net loss of US$136m in 2009, compared to a loss of US$10.96m in the same period of 2008.
In Oman, the telecom operator's net income swelled by around 21 per cent while there was a slight rise of 0.8 per cent in Bahrain. – Emirates Business 24|7
