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UPDATE 1-UAE's du Q3 net profit doubles; beats forecasts

Published 11/07/2010, 11:58 PM
Updated 11/08/2010, 12:04 AM

* du profit more than doubles, revenue up 31 percent

* Beats forecasts, comes after financing for growth push (Adds detail, background)

DUBAI, Nov 8 (Reuters) - United Arab Emirates telecoms services provider du's third-quarter net profit more than doubled to beat analysts' forecasts as it aims for aggressive growth in its home market.

Du said on Sunday it made a net profit of 163.1 million dirhams ($44.4 million) on continued wireless and fixed line growth, compared with a profit of 78.55 million dirhams a year earlier.

Analysts had expected an average profit of 136.5 million dirhams, and the result beat the highest forecast for 151 million dirhams.

Du, partly owned by the ruler of Dubai's investment company Dubai Holding and Abu Dhabi investment vehicle Mubadala Development Co, also reported a 31 percent rise in revenue to 1.744 billion dirhams for the period.

In June, du said it raised 1 billion dirhams to fund a growth plan and compete with market leader Etisalat.

Du plans to increase its broadband offering and 3G for mobile data but has no intention to build its own core infrastructure, such as a fibre-optic network, which it shares with rival Etisalat.

Abu Dhabi-based Etisalat, the Arab world's second-biggest telecoms company, lost its monopoly in the UAE market to Du in 2007, and has been aggressively expanding outside its home market since. ($1=3.672 Uae Dirham) (Editing by Lincoln Feast)

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