Emirates Telecom Group paid Emirates Etisalat Emirates Integrated Telecommunications Company du about 7.66 billion dirhams the value of government franchise fees for the year 2018, a decrease of 5.1% compared to 8.07 billion in 2017.
According to a report prepared by Namazun and based on the financial statements of the two companies, the value of the concession paid by Etisalat amounted to about 5.58 billion, and Du paid about 2.08 billion, a growth of 2% compared to 2.04 billion in 2017.
Franchise Fee
The Ministry of Finance had set fees for Etisalat and du from 2012 to 2016 before it decided to unify it from 2017 until 2021.
And now it imposes fees of 15% on the revenues of the local products and services of the two companies and 30% on the profits of the two companies, while exempting the revenues of the international operations from these fees.
Franchise rights were decided for 2012, starting January 1, at 5% of revenue, and 17.5% of profits.
Growth
On the same level, the profits of Emirates Telecom Group Emirates and Emirates Integrated Telecommunications Company du increased by the end of last year by 2.2% to 10.35 billion dirhams, compared to a profit of 10.12 billion dirhams in 2017.
The revenues of the two companies increased 1.8% to 65.8 billion dirhams in 2018, as du revenues increased 3.2% to 13.4 billion, while Etisalat revenues increased 1.5% to 52.4 billion dirhams.
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