UAE telco giant Etisalat has announced plans to distribute dividends at 60 fils per share par value for the fiscal year 2011 to its shareholders as per the board's recommendation.

Announcing this on Tuesday, Etisalat board members said the full year dividend represents 81 per cent payout of 2011 earnings per share.

The audited and approved consolidated financial results for 2011 show a 23 per cent growth in subscriber numbers reaching 167 million subscribers in 17 markets across the Middle East, Africa and Asia in which Etisalat operates, they said.

The corporation also witnessed one per cent growth in revenues which hit Dh32.2 billion ($8.7 billion) besides posting profits of Dh11.6 billion before 50 per cent federal royalty.

The General Assembly, meanwhile elected four new members from private sector. These include Khalaf bin Ahmed Al Otaiba, Sheikh Ahmed Mohammed bin Sultan Srour Al Dhaheri, Abdul Munim bin Eisa bin Nassir Al Serkal and Mana Mohd Saeed Al Mulla.

Commenting on the results, chairman Mohammed Hassan Omran, said, "Our investments in national broadband network infrastructure have spurred combined revenues growing by 20 per cent in data and Internet segments reaching Dh8 billion contributing to 34 per cent of total UAE revenue."

“These results support our long term investment strategy of diversifying revenues and driving greater efficiencies from our international operations, while enhancing network capacity for the increasing demand for data usage,” he added.

Reflecting on the results Omran said, "Etisalat has continued to achieve growth in its operating revenues. If we set aside the drop of value in Indian operation, we see that the corporation has maintained good profitability despite challenges."

Despite competitive pressure, the corporation’s investments have achieved good returns, he added.

Group CEO Ahmad Abdulkarim Julfar highlighted Etisalat’s positive gain in its mobile subscriber base during the last quarter of 2011.

He said this was due to a number of factors including reduced churn and increased customer loyalty, continuing efforts to revamp sales channels and a focus on the value proposition in the latest mobile offerings.

On the operations, Julfar said, "As the incumbent operator in a two player market in the UAE it is expected that we should feel competitive pressure especially in the mobile segment."

"However, we have retained a dominant share of revenues especially from higher ARPU customers, and strong growth in the data and internet segments which contributed 34 percent of UAE revenues," he added.

Julfar also commented on Etisalat’s efforts to reduce and control operating expenditures by initiating operational excellence and efficiency, to drive economic diversification and long term sustainability.

Last year, more than $1.8 billion of international remittances flowed through Etisalat’s mobile money transfer service.

The group’s innovative services were recently recognized by global industry peers with Etisalat collecting three prestigious GSMA Global Mobile Awards for its Mobile Baby healthcare platform and its mobile commerce facility.

“We have a proven successful track record of introducing practical, relevant and appropriate services to enhance the quality of life and socio-economic development of the communities we serve," Julfar stated. 

“These innovations are made possible through our investment in network infrastructure and are helping us rapidly diversify our revenues. Our strong cash position means that we have not only retained our investment grade credit rating and positive outlook from the three major credit ratings agencies, but we also have the cash in hand to further expand and invest in our operations," he added.-TradeArabia News Service