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Etisalat posts Dh4.3b profits

Market analysts in Dubai said yesterday that the company’s performance was in line with the market expectations. Major contributions to Etisalat’s profits came from a 23 per cent growth in mobile penetration.

While mobile connections increased to reach 4.5 million lines, representing a 98 per cent reach to the country’s fast growing population, Internet connections, including high-speed Internet access, crossed the half million mark during 2005. SMS messages in 2005 reached almost 1.3 billion.

The company’s fourth quarter net profit dropped 4 per cent to Dh1.07 billion compared to the previous three months. However, as the full year profits increased 23 per cent, earnings per share rose to Dh1.17 from 94 fils in the previous year.

Etisalat shares ended 2 per cent higher at 25.90 dirhams before the results were announced.

“These results are motivation for us to continue providing state-of-the-art services to our customers, who are the driving force behind our growth and success. We continue to strive to be the telecom operator of choice for customers in all markets where we operate,” said Mohammad Hassan Omran, Chairman and CEO of Etisalat. Last year had been exceptionally eventful for Etisalat which announced a number of international investments. The liberalisation of the telecom sector in the UAE in 2004, according to telecom industry analysts, came as a blessing in disguise for Etisalat, forcing it to make more aggressive foray into regional and international markets. Etisalat’s strategic partnership with Atlantique Telecom is one among the several measures the company had announced during the past 12 months. The Atlantique deal gave Etisalat direct market access to six West African telecom markets including Benin, Burkina Faso, Gabon, Niger, Togo and Ivory Coast.

The company’s biggest acquisition to date is the 26 per cent controlling stake it took in Pakistan Telecommunications Company Limited for $2.598 billion (Dh9.53 billion) in June last year. Although the acquisition process has dragged on for more than 6 months, the company is expected to take control of PTCL next month. While it has a significant presence in Sudan through Kanartel, Etisalat is eying Afghanistan, Tunisia and other Asian and African markets for mobile operations. While its failure to win the bid for Turkish telecom came as a cropper in its attempt to enter the European market, Etisalat is understood to be keen on opportunities in Europe. Earlier this week the company had denied a report that it was planning to acquire a Danish telecom company.