Etisalat Q2 sales, profit boosted by overseas ops

26 Jul 2012

In a statement to the Abu Dhabi Securities Market, Emirates Telecommunications Corporation (Etisalat) has reported consolidated revenue of AED8.254 billion (USD2.25 billion) for the three months ended 30 June 2012, an increase of 4% from the AED7.929 million posted in the year-ago period. Turnover generated by the company’s international business totalled AED2.3 billion in the second quarter of 2012, an increase of 14% year-on-year and contributing 28% of Etisalat’s total revenue for the period (up from 26% a year earlier). The rise in overseas sales helped to offset a 0.4% year-on-year and 3% quarter-on-quarter decline in domestic revenue, which fell to AED5.643 billion amid rising competition in its home market from rival Du. Etisalat said that consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew 16% from AED3.671 billion in Q2 2011 to AED4.261 billion twelve months later, which the firm attributed to higher sales coupled with lower staffing costs, direct cost of sales and project-based expenses. Consolidated net profit after federal royalty totalled AED1.866 million in the three months ended 30 June 2012, up 17% from AED1.594 billion in the second quarter of 2011, due to higher EBITDA, an increase in net finance income and a higher share of profit from associates.

As at 30 June 2012 Etisalat, which is 60%-owned by the UAE government, reported a total subscriber base of 172 million across the Middle East, Africa and Asia, representing a year-on-year increase of 22% from 141 million. The firm’s domestic customer base totalled 8.9 million at the end of Q2 2012, of which mobile users accounted for 6.98 million, fixed line customers 1.13 million and internet subscribers 780,000. Subscribers of Etisalat’s ‘eLife’ double- and triple-play packages grew 71% to reach 450,000. Earlier this year the company announced its withdrawal from India, after the country’s Supreme Court cancelled 122 2G operating licences, including that of Etisalat DB (formerly known as Swan Telecom), in which Etisalat owns a 45% stake. Etisalat’s Indian operation was deconsolidated in March 2012.

United Arab Emirates, Etisalat UAE