An increase in mobile phone customers as well as a surge in mobile data usage saw Dubai telecom operator du recording a rise in 2015 revenues despite suspending almost 1.1 million subscribers in relation to 'My Number My Identity' initiative.

Increased use of data by customers was the main catalyst for the growth in business the telecom operator said as it announced a total annual dividend payment of Dh0.43 per share for 2015 as against Dh0.32 per share in 2014.

Total mobile customer base stood at 7.72 million at the end of fourth quarter up 5.2 per cent from the same 2014 period even after the suspension of 1.1 million subscribers as part of the identity initiative in 2015 du said.

Along with a rise in mobile subscribers fixed line revenue also rose to Dh2.55 billion up 13.8 per cent over the course of 2015 showing that mobile connectivity jump has not made any major inroads into landline growth.

Ahmad bin Byat chairman of du said despite challenging conditions the company could post another year of growth.

"In line with our strategic objectives 2015 saw us enter a phase of transformation in which we examined our business model against the industry's shift towards digital delivery. In doing so we have been able to hone our strategy to ensure sustainability and maximise value for both our customers and shareholders.

"Looking ahead we remain committed to many of the UAE government's initiatives aimed at enhancing the lives of UAE citizens and the development of a digitally-enabled ecosystem. The UAE's 'Smart Government' and Dubai's 'Smart City' initiatives are great examples of this" said Byat.

"To reward our shareholders we have proposed a total annual dividend of Dh0.43 per share."

"As we continue to transform our business for the digital age our focus on quality growth has remained steadfast" said Osman Sultan du's CEO.

Sultan said data continued to drive du's business. "Customer demand for connectivity remained at healthy levels during the fourth quarter while our fixed and enterprise businesses showed great improvement. An increasingly competitive environment saw total revenue edge lower in the fourth quarter and a significant 30.1 per cent rise in the amount of royalty paid to the government meant net profit after royalty declined on the year.

"In the coming months we plan to continue to transform our business to ensure longevity of value for all of our stakeholders through quality service high end products and digitally-focused initiatives" he said.

The company's revenues grew to Dh12.34 billion a 0.8 per cent increase compared to 2014 (Dh12.24 billion). Fixed line revenue rose to Dh2.55 billion up 13.8 per cent as mobile data revenues increased by 7.3 per cent year on year to Dh2.96 billion from Dh2.76 billion in 2014.

Earnings before interest tax depreciation and amortization increased 7.7 per cent to Dh5.42 billion versus Dh5.03 billion in 2014.

Net profit before royalty grew 4.3 per cent year on year to Dh3.86 billion versus 2014 (Dh3.7 billion). Net profit after royalty stood at Dh1.94 billion down from Dh2.11 billion in 2014 due to an increase in year-on-year royalty of 20.6 per cent du said.

Free cash flow reached Dh2.27 billion up 3.7 per cent from Dh2.19 billion in 2014.