du announces Dhs412m revenue for the third quarter

Financial highlights

Net sales revenues for the third quarter at Dhs412m represents an increase of 36% over that achieved in quarter 2 (Dhs302m) and a 304% increase over the comparable period last year (Qtr 3 2006 - Dhs102m) and brings the total nine-month revenue to 30 September 2007 to Dhs898m an increase of 196% compared with the similar period last year (9mths to 30 September 2006- Dhs303m).

The increase in revenue arises predominately from the continuing success in acquiring new mobile customers and servicing the existing customers' base. Our mobile customer base has now exceeded 880,000 which represent approximately 21% of the UAE population. Revenue growth for the year has also been augmented by the continuing expansion of our fixed line, Broadband and paid TV business.

Capital expenditure in the first nine months stood at Dhs1,294m, an increase of Dhs395m in the quarter reflecting the continued investments made in enhancing the mobile network. In addition, du's retail presence was further enhanced through the opening new du shops bringing the total number of du owned shops to 16 covering all the Emirates. This is in addition to the extensive retail presence offered through our dealer network.

Net cash outflow for the quarter was Dhs372m bringing the total cash utilization for the nine months to Dhs1,335m, reflecting the significant continuing capital investment programme (9mths to 30 September 2007- Dhs1,294m) referred to earlier.

Ahmed Bin Byat, Chairman of du, said: 'du has established itself as a major player in the industry and has built a strong presence in the UAE telecom market in a short period of time. Increased revenues in the third quarter reflect our customers' growing confidence in our solid investment decisions and new service initiatives.'

'Our commitment to innovation and dedication will, I am sure, enable us to continue to deliver world-class services to our customers and provide a solid return on investment to the shareholders.'

Osman Sultan, CEO of du, emphasized that the company is working according to plan and has, in fact, exceeded expectations in enhancing its mobile phone customer base as well as assuring active customers.

'du's strategy of launching new products and services in the telecom market has enabled us to substantially expand our subscriber base and we will continue to innovate and bring to market many new products over the coming months to live up to the expectations of consumers and shareholders.'

'We will of course continue to optimize and expand the existing network and infrastructure and in addition look to support Corporate Social Responsibility initiatives that connect us to different segments of society. We are proud of the trust placed in us by our customers.'