Emirates Integrated Telecommunications (du) is considering expanding into mobile markets outside the United Arab Emirates (UAE) by launching MVNOs in an effort to sustain profit growth.
In a conference call on du’s Q1 results, CEO Osman Sultan…
Emirates Integrated Telecommunications (du) is considering expanding into mobile markets outside the United Arab Emirates (UAE) by launching MVNOs in an effort to sustain profit growth.
In a conference call on du’s Q1 results, CEO Osman Sultan said the company is considering joining the bidding for three MVNO licences in Saudi Arabia later this year, UAE-based media reported.
Stressing the final decision rests with the company’s shareholders, Sultan said it has first to consider the conditions in Saudi Arabia and other markets, according to a report by investment news service Mubasher.
He declined to comment on whether the company has held talks with Saudi operators about hosting an MVNO on their networks.
The company would also evaluate similar opportunities in other markets in an effort to sustain profit growth, the CEO reportedly said, but emphasised it has not yet made a firm, strategic decision on the matter.
However, he ruled out the possibility of launching full scale mobile networks in international markets.
Du posted revenues of AED2.4bn (US$653.4m) for the first quarter of 2012 – up 20.1% from the same period last year. Of that, the company’s mobile business contributed AED1.9bn (US$517.3m).
The company posted a net profit before royalty of AED666m (US$181.3m) – a 61.8% increase on the Q1 2011 result.
Du said in a statement on the Q1 results that it gained 321,000 mobile customers in Q1 2012, more than any other quarter in the past two years.
The company said it now has a 46.7% share of the domestic mobile market with 5.5 million customers, while rival Etisalat has a 53.3% share.
Etisalat is the UAE’s largest telco and has operations in 18 countries across the Middle East, Africa and Asia.
