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Etisalat Q1 net profit falls 8pc to $544m

ABU DHABI, April 26, 2016

Abu Dhabi-listed Etisalat reported a 8 per cent fall in first-quarter net profit on Tuesday.

Etisalat, which directly and indirectly operates in about 17 countries across the Middle East, Africa and Asia, made a net profit of Dh2 billion ($544.6 million) in the three months to March 31, the company said in a statement. This compares with a profit of Dh2.18 billion a year earlier.

Analysts at EFG Hermes and SICO Bahrain forecast the former monopoly would post a quarterly profit of Dh1.93 billion and Dh1.99 billion respectively.

Etisalat said its lower profit was due to factors including higher depreciation expenses and foreign exchanges losses in the quarter against currency gains in the corresponding period of 2015.

The profit fall came despite Etisalat generating first-quarter revenue of Dh12.85 billion, 1 per cent up from Dh12.73 billion a year earlier.

Etisalat had 165 million subscribers as of March 31, down 1 percent from the same point a year earlier. It cited disconnections which were a result of mandatory registration schemes in various markets.

Etisalat appointed Eng Saleh Al Abdooli as chief executive in March, after former head Ahmad Julfar resigned for personal reasons earlier in the month.

Al Abdooli said: “Etisalat’s first quarter results are a continuation of the strong performance the company has achieved over the years. Despite a challenging set of circumstances facing the telecoms industry today, Etisalat Group continues to deliver strong performance and value for its shareholders and customers.”

He continued: “The telecommunication industry today is notable by a dynamic that is evolving very rapidly. In order to maintain our long-term growth and track record of performance and achievement moving forward, we must ensure we remain fit-for-purpose. This means delivering the innovative solutions necessary to sustain and further enhance our position as a leading operator in emerging markets. Innovations such as the Internet of Things and the Cloud, as well as vertical digital solutions, are no longer vague concepts, but are the basis of an exciting and prosperous future that will determine our long-term profitability.  

“As the world changes, so must we as a company. The most effective businesses never stand still. They continually adapt to ensure long-term success. The current internal re-structuring of Etisalat Group is best business practice, designed to: accelerate its strategic implementation; improving and enhancing overall performance; optimizing efficiency and improving operating model effectiveness; enhancing our customer experience; and further optimising OpCos, networks and platforms synergies, as well as accelerating the launch of digital services," he said. - Reuters and TradeArabia News Service




Tags: Etisalat | Telecom | profit |

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