Dubai’s telecom operator Emirates Integrated Telecommunications Company (du) said that its royalty fees to the federal government will remain unchanged for the next few years.
“The Federal Royalty calculation mechanism for the period 2022-2024 will be maintained as the same as the one for the period 2017-2021,” du said in a statement to the Dubai financial market (DFM).
“The annual federal royalty fee will be calculated as the sum of 15% of the company’s annual regulated revenues plus 30% of the company’s annual regulated profit, both generated from UAE operations.”
du announced that the annual royalties it will pay to the government for 2022 to 2024 will be 15% of the company’s revenues and 30% of its profit.
The rates will be applied to the telecom firm’s revenues and profit from its domestic operations and are line with the royalties paid between 2017 and 2021.
The fees were first implemented in 2016. The Dubai-based telecom services provider had previously paid lower fees: 5% of revenues and 17.5% of net profit in 2012; 7.5% and 20% in 2013; 10% and 25% in 2014; and 12.5% and 30% in 2015.
EITC, the parent company of du, reported a 7.1% year-on-year drop in net profits for Q3 2021 with a net profit of AED283 million ($77.1m), down from the AED305m ($83m) posted for Q3 in 2020 while revenues grew 6.9% to AED2.9 billion attributed to broadband services and 5G handsets demands.
