Du Telecom (DU) net profit for 2009 Q3 rose almost 400% to AED 157 million before royalty deductions of 50%, according to a Reuters report.
Timestamp on statements and press release on DFM website is 0805 this morning but it appears Du shares were suspended which seems strange if the information was sent before the market opened. I didn't receive a Du press release so I don't know what time it was sent.
See also discussion about Du share price from past couple of weeks.
DFM 01 November 2009 (am):
(DU): Discloses its reviewed interim condensed financial statements for the period ended 30/09/2009
DFM 01 November 2009 (am):
(DU): Press release regarding its financial results for the 3rd QTR of 2009
DFM 01 November 2009 (am):
Resume trading on DU shares after disclosing its interim financial statements for the period ended 30/09/2009
Dubai telecom firm du Q3 profit rises on new customers
by John Irish
Net profit after royalty 78.55 mln dirhams, up 150 pct
Profit before royalty rises to 157.1 mln dhs, up 398 pct
Active mobile subscribers stands at 3.139 million
Revenues rise 25 pct over Q3 '08 to 1.33 bln dirhams
EBIDTA up to 297.3 mln dirhams from 101.5 mln in Q3 '08
Dubai telecom firm du (DU) more than doubled net profit in the third quarter, driven by a 51 percent rise in active mobile subscribers, it said on Sunday.
Net profit for the three months to September 30 rose to 78.55 million dirhams from 31.47 million in the year-earlier period, while profit before a royalty to be paid to the government jumped 398 percent to 157.1 million dirhams, the firm said in a statement on the bourse website.
Thousands of expatriates have lost their jobs in the Gulf trade and tourism hub of Dubai since the global financial crisis took hold, hitting earnings across sectors.
Still, quarter-to-quarter net profit rose 36 percent as it gained 233,200 mobile telephone customers in the the three months to September 30. Its total active subscribers now stands at 3.139 million.
Analysts polled in a Reuters survey in October forecast an average 177.4 percent rise in third-quarter profit.
Revenues for the period rose 25 percent to 1.33 billion dirhams, earnings before interest tax, depreciation and amortization almost tripled to 297.3 million dirhams
The results are a bit worse than I thought. You may recall that my forecast was 8 Fils for 2009 (see my posts on DU). But, Du closed the first 9 months with 4 Fils (profit per share) which means they will close 2009 with 6.5 Fils max (20% below my estimate)
Even if they grow 150% in 2010 ...you are still at 15 Fils per share
Remeber, Du's initial capital was not enough, so they borrowed about $1B (APROX 90 Fils per share )...I would imagine that they need to pay the loan, before DU can afford to pay any dividend shareholders
Being an old fashioned investor, I would like to see some return on my investment in terms of 3-5% cash dividend ...or at least see 6-8% profit re-invested in the company, with a solid profit growth potential. DU offers 1.5% ...Next year may be 4%...No dividend expected for another 3-4 yrs
May be Eitisalat is a better bet ?...but then again, I'm old fashioned investor
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