TeleGeography Logo

Forex losses hit Etisalat bottom line

29 Oct 2015

Etisalat of the United Arab Emirates (UAE) has reported an 8.5% fall in net profit for the three months to 30 September 2015 to AED1.95 billion (USD530 million), down from AED2.13 billion a year earlier, due to wider foreign exchange losses and a higher federal royalty payment. Consolidated revenues dropped 1% to AED12.99 billion. While revenues from its domestic operations rose 6% to AED7.17 billion, there were declines in markets such as Egypt, Pakistan and West Africa. The group’s international businesses contributed 44% of overall revenues in the third quarter. EBITDA dropped 5% to AED6.65 billion due to lower revenue and higher regulatory and interconnection costs.

In operational terms, the group registered subscriber growth in its home market, as customer numbers increased 7% year-on-year to 11.6 million, though the overall group user total dropped from 180 million at end-September 2014 to 170 million a year later due to the wiping of inactive accounts in a number of markets.

The firm’s chief executive, Ahmad Julfar, commented: ‘Etisalat Group continues to capitalise on the opportunities we see for growth, but there are also clear challenges ahead for the telecommunications sector. Consumer behaviours and new technologies – and uses for those technologies – are rapidly changing the telecommunications industry.’

United Arab Emirates, Etisalat UAE

GlobalComms Database

Want more? Peruse the GlobalComms Database—the most complete source of intel about mobile, fixed broadband, and fixed voice markets.

TeleGeography

TeleGeography is the definitive source for telecom news, numbers, and analysis. Explore the full research catalog.