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Etisalat Group reports net profit increase of 51 per cent compared to the same period last year

posted on 28/07/2016: 1411 views



Emirates Telecommunications Group Co. (Etisalat Group) reported a consolidated net profit (after federal royalty) of AED 2.3 billion for the second quarter of 2016, a 51 percent year-on-year rise.

"The increase in profit is attributed to lower finance costs, incurring forex gain during the period as compared to forex loss in the same period last year, lower federal royalty and lower share of results from associates and discontinued operations," the telco said in a statement.

Revenues stood at AED 13.3 billion, a 2 increase percent YoY, and subscriber base rose 1 percent YoY to 163 million. Consolidated capital spending decreased by 17 percent to AED 1.8 billion.

Consolidated EBITDA totalled AED 6.8 billion, resulting in EBITDA margin of 51%.. Distribution of interim dividend for the first half of the fiscal year 2016 of 40 fils per share.

Credit Ratings Agencies Standards & Poor's and Moodys affirmed Etisalat Group's high credit rating at AA-/Aa3.

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."

He 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. We consider the loyalty of millions of our customers for more than four decades as dearest to our hearts. This loyalty motivates us to continue to provide innovative solutions that allow us to offer our customers value-added services based on a set of values that reflects our deep understanding of their needs, and enhancing the customer experience in a way that meets the best international standards, and reflects on our customer's satisfaction and happiness."

Al Suwaidi said, "I would also like to express my sincere thanks and appreciation to the management of Etisalat Group for the tangible changes that were performed in the last period, which resulted in achieving the results that we aspire to. These changes contributed to creating a stimulating competitive environment, which helps raise the Group's performance and level of innovation, while reflecting positively on the interests of our customers and shareholders alike."

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."

For his part, Eng. Saleh Al Abdooli, Chief Executive Officer of Etisalat Group 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."

He continued, "While the industry is renowned for the speed of change, Etisalat Group is also under-going 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.

"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."

Al Abdooli said, "Etisalat is already using its telecommunication infrastructure and digital technologies to deliver for our customers. We were the first company in the region to roll out 4G-LTE, with now around 95% 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%, which is considered as one of the highest in the world."

"In today's hyper-connected world our customers demand the best service possible, wherever they are. Speed, reliability and quality are what drive our business. Our customers remain our priority and inspire us to continually improve our service and seek out the innovations that will bring future benefit to all."

In the UAE, EBITDA in the second quarter of 2016 was AED 4.3 billion increasing year over year by 3% leading to an EBITDA margin of 56%. Maroc Telecom's consolidated EBITDA for the second quarter of 2016 amounted to AED 1.6 billion, resulting in EBITDA margin of 51%.

In Pakistan EBITDA in the second quarter of 2016 amounted to AED 0.4 billion with EBITDA margin increasing by 2 points to 36%. Quarter over quarter EBITDA increased by 7% with EBITDA margin improving by 2 points. - Emirates News Agency, WAM – http://www.wam.ae/en/news/economics-international/1395298242528.html

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