4Q15 results highlights: revenue – AED3,149 mn (-2% Y-o-Y, +3% Q-o-Q) +1% vs. EFGe, EBITDA margin – 44.8% (+5.5pp Y-o-Y, -0.3pp Q-o-Q) +0.1pp vs. EFGe, Net income – AED462 mn (-10% Y-o-Y, -6% Q-o-Q) -10% vs. EFGe   du published its preliminary 4Q15 results that were in line with our estimates at the operating level, but earnings missed due to higher-than-expected depreciation and amortisation (D&A) charges. Earnings missed our estimate by 10% at AED462 million as D&A was 17% above our forecast, up 27% Y-o-Y and 14% Q-o-Q, but the company did not provide any clarification with regards to this unexpected spike. We suspect this is a one-off increase in D&A and will seek more details from management once the full financials are available. Excluding the increase in D&A, earnings would have been exactly in line with our estimate.   In its short disclosure to DFM, the company made no allusion to dividends nor to potential developments regarding foreign ownership access; we reiterate our view that Etisalat’s recent opening to foreign ownership would eventually encourage du’s main shareholders to allow the same. We reiterate our Neutral rating on the stock as we believe valuations are fair at the current market price. (Company, Omar Maher)