EUR 236.14 For Business Accounts Only

Victim of higher government taxes

DU recorded timid 9M 2016 revenue growth, with flat Mobile revenues which were offset by increases recorded across the three other business segments. Indeed, 9M 2016 total revenues reached AED9.293bn, a slight increase by only 1.1%, yoy, which was maintained thanks, especially, to strong contributions from the mobile data and wholesale, and broadcasting segments. Indeed, the mobile market saturation in the UAE, coupled to increased pricing pressures from Etisalat, has braked the Mobile revenue growth, which remained stable at AED6.659bn (71.7% of total revenues vs. 72.5% in 9M 2015 and 74.7% in 9M 2014). Despite being flat, DU was able to maintain a strong Mobile contribution thanks to 1/ The continued increase of Mobile Data revenues (+4.2%, yoy) with “Data” representing 33.5% of the Mobile service revenues, up from 31.7% in 9M 2015, 2/ a 13.1%, yoy, rise in the Mobile customer base with 8.230 million subscribers accounting for a market share of 46.8% vs. 44.5% in 9M 2015. Fixed services recorded a slight growth in revenues (+1.8%) at AED1.958bn. By contrast, both, wholesale and broadcasting services performed exceptionally well during this period, with a revenue growth rate of 11.3% and +7.3%, yoy, respectively.