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Etisalat posts Dh3.9 billion net profit in H1

ABU DHABI — Emirates Telecommunication Company, or etisalat, net profit declined 15.21 per cent to Dh3.9 billion in the first half of the year, down from Dh4.2 billion in the corresponding period.

In the second quarter, the net profits fell sharply by 20.83 per cent to Dh1.9 billion from Dh2.4 billion in the same period last year.

The telecommunication giant, in its consolidated financial results for the first six months, reported a growth of two per cent in net consolidated revenues that reached Dh16 billion compared to Dh15.7 billion reported during same period last year.

During the January-June period, net assets also increased by 2.5 per cent to reach Dh41.4 billion compared to Dh 40.4 billion in the last year.

However, in the period March-June quarter, the net revenues remained at previous quarter’s level of Dh8.1 billion.

Analysing the financial performance, Simon Simonian, a senior telecommunication analyst at Dubai based Investment Bank, Shuaa Capital said that in the first and second quarters of last the year, etisalat’s results were not impacted by economic slowdown. This year’s figures represent impact of slowdown, he said.

About revenues slightly above his expectations, Simonian said that with operations in 18 countries, etisalat’s overseas businesses contribution to revenues is increasing, this is one reason to justify the growth in revenue.

Earnings per share reached Dh0.49 during the first half of year 2010.

Etisalat has 7.8 million mobile subscribers in the UAE, 1.28 million fixed-line subscribers and 1.39 million internet subscribers at the end of the first half.

Commenting on these results, Mohammad Omran, Chairman of etisalat, said that his company has followed a powerful strategy to offset the potential impact of today’s global economic conditions which continue to affect the results of companies around the world.

“We have seized opportunities to stand strong and have faced all the challenges and continue to achieve exceptional results,” he said.

“The international markets have seen a great deal of fluctuation, but in spite of this we have been able to deal with this situation through a practical strategy which is based on maximising positives and reducing the negative impact as much as possible,” the etisalat chairman said.

Despite the unique circumstances that the global economy finds itself, Omran said,” we have received strong contributions from our international subsidiaries well in advance of the business plan. This encourages us to continue our international expansion worldwide.”

—haseeb@khaleejtimes.com