Tuesday 19 March 2024
 
»
 
»
REVENUE HITS $3.62bn

Al-Suwaidi ... enhancing performance

Etisalat Q2 profit rises 51pc to $631m

ABU DHABI, July 27, 2016

Abu Dhabi-listed Etisalat reported a 51 percent rise in second-quarter net profit on Wednesday on the back of foreign exchange gains and lower finance costs and royalties.

Etisalat, which directly and indirectly operates in about 18 countries across the Middle East, Africa and Asia, made a net profit of Dh2.32 billion ($631.7 million) in the three months to June 30, it said in a statement. This compares with a profit of Dh1.53 billion a year earlier.

SICO Bahrain forecast Etisalat would make a quarterly profit of Dh1.92 billion.

The company's board proposed an interim dividend of 40 fils per share for the first half, according to the statement.

Etisalat generated second-quarter revenue of Dh13.33 billion ($3.62 billion), up from Dh12.72 billion a year earlier.

Domestic revenue rose 3 percent to Dh7.7 billion due to increased customer base, while international revenue fell 1 percent year on year to Dh5.5 billion because of currency volatility in Egypt and Pakistan.

Etisalat had 163 million subscribers as of June 30, up 0.7 percent from the same point a year earlier.

The firm agreed in June to sell its 92.3 percent holding in Sudanese fixed line operator Canary for Dh349.6 million to Sudan's Bank of Khartoum, subject to conditions including the approval of Sudanese authorities.

Etisalat Group chairman Mohamed Eissa Al-Suwaidi said: "We have succeeded in increasing our profits in the first half of 2016 and enhancing our performance in a way that fulfils our long fruitful journey.  Etisalat Group owes this success first and foremost to the continued support of the wise leadership of the United Arab Emirates, which has ensured that we continue to aspire forward with confidence and also to adapt to the rapid developments and changes faced by the telecom industry."

Al Suwaidi added: "Our customers are vital to anything that we do and they are the main reason behind our success. We highly appreciate our customer's trust, which pushes us to continue our hard work to meet their needs and aspirations in every market where we operate."

He reiterated: "Etisalat Group has a leadership role in the telecommunications and Information Technology sector worldwide. The strong financial results that were achieved in the second quarter of 2016 provide a solid ground for further growth in the rest of the year.  Through our fully-fledged expertise in the fields of telecoms, our ability to keep pace with the latest technological innovations, and our constant investment in the development of our infrastructure and networks, we are ready to fully contribute to the UAE's vision 2021 and meet the aspirations of Expo 2020."

Eng. Saleh Al Abdooli, chief executive officer, said: "Etisalat's performance in the first half of 2016 maintains our record of solid performance and consolidates our position as a leading operator in emerging markets. Therefore, enabling us to continue to offer significant value for our shareholders, whilst being able to make the investment in innovative solutions that is vital to maintain our leading role in one of the world's fastest evolving industries.

"While the industry is renowned for the speed of change, Etisalat Group is also undergoing positive change. The re-structuring of the company, which was announced earlier this year, was finalised during the second quarter of 2016. It was designed to help the delivery of our strategic objectives and enhance overall performance.

He said: "We are already putting in place the network and partnerships that will deliver the benefits from changes in the telecom industry. Etisalat Group is a strong supporter of the Smart City concept. The partnerships with the Expo 2020 team and with Dubai Parks and Resorts, which we announced in this quarter, are such initiatives, in line with our digital transformation strategy, and which Etisalat considers a priority to shape and advance Smart City agenda in the UAE."

Etisalat is already using its telecommunication infrastructure and digital technologies to deliver for its customers. "We were the first company in the region to roll out 4G-LTE, with now around 95 per cent of the UAE's populated areas covered by faster speeds. Recently, we launched the UAE's first Voice over LTE (VoLTE) service, providing customers with vastly improved quality for voice. In addition, Etisalat Group achieved a penetration rate of Fibre-to-the-Home (FTTH) of 89.4 per cent, which is considered as one of the highest in the world," he said. -Reuters and TradeArabia News Service
 




Tags: UAE | Etisalat | Telecom |

More IT & Telecommunications Stories

calendarCalendar of Events

Ads