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Etisalat Q2 revenue, net profit up 27% on Maroc Telecom deal

21 Jul 2014

Emirates Telecommunications Corporation (Etisalat) has reported consolidated revenue of AED12.579 billion (USD3.4 billion) for the second quarter of 2014, an increase of 27% from AED9.882 billion in the year-ago period, on the back of the acquisition of a 53% stake in Maroc Telecom in May, which expanded Etisalat’s footprint to 19 markets. Growth was also driven by an 8% year-on-year rise in domestic turnover to AED6.8 billion, resulting from continued strong customer additions, data performance and increased device sales. Excluding the results of Maroc Telecom, revenue totalled AED10.4 billion for the second quarter of 2014, up by 5% year-on-year and quarter-on-quarter. Egyptian unit Etisalat Misr generated turnover of AED1.2 billion in three months ended 30 June 2014, an increase of 5% from the prior-year period, mainly thanks to growth in data services. The Asia cluster saw revenue decline by 1% to AED1.6 billion, due to increasing competitive pressures in Afghanistan. The Africa cluster, meanwhile, benefited from the consolidation of Maroc Telecom as of 1 May 2014, with 2Q14 revenues growing 320% year-on-year to AED2.9 billion; excluding Maroc Telecom, African sales increased 1% to AED700 million.

Etisalat, which is 60% owned by the UAE government, said that group consolidated EBITDA rose 21% from AED4.867 billion in 2Q13 to AED5.866 billion a year later. Excluding Maroc Telecom, second-quarter EBITDA fell 4% year-on-year to AED4.6 billion, thanks to higher interconnection and termination costs, higher regulated expenses and network-related costs. Consolidated net profit after royalty rose 27% to AED2.507 billion in the second quarter of 2014 from AED1.976 billion a year earlier. Totalling AED3.4 billion in 2Q14, consolidated capital expenditure was 84% higher than the year-ago period, due to the acquisition of a 3G licence and the renewal of 2G licences in Pakistan and the consolidation of Maroc Telecom.

At the end of June 2014 Etisalat reported an aggregate subscriber base of 182.1 million (including 38.7 million customers from Maroc Telecom), an increase of 27% from 143 million a year earlier. Domestic mobile customers grew 17% year-on-year to 9.3 million, while UAE fixed line subscribers (including eLife and broadband customers) rose 58% to 1.7 million. Asia segment customers fell 5% year-on-year to 35.8 million, due to a clean-up of its mobile subscriber base in Pakistan and competitive pressures in Afghanistan. The Africa cluster reported a 151% increase in customers to 69.7 million at 30 June 2014, driven by subscriber acquisitions in Nigeria and the consolidation of Maroc Telecom.

United Arab Emirates, Etisalat UAE, Maroc Telecom (IAM)

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