Etisalat revenue up 6% in Q2

Etisalat revenue up 6% in Q2

Abu Dhabi - Telecom giant's consolidated profit drops on higher depreciation, provision.

By Haseeb Haider

Published: Wed 29 Jul 2015, 12:00 AM

Last updated: Wed 29 Jul 2015, 9:03 AM

Emirates Telecommunication Corporation's consolidated net profit after federal royalty dropped to Dh1.5 billion in the second quarter of the year on higher depreciation and amortisation.
It also included the impact of its Saudi Arabian telecom subsidiary Mobily's additional provision for accounts receivables, higher net finance costs, incurring forex losses during the period against gains in the same period last year and higher federal royalty charges, the company known as etisalat said on Tuesday.
Etisalat Group's consolidated revenue for the quarter was Dh13.3 billion, a six per cent growth year-on-year, the company said.
However, in the UAE, revenue grew stronger year-on-year by nine per cent to Dh7.5 billion and four per cent quarter-over-quarter.
The group's consolidated earnings before interest, taxes, depreciation, and amortisation, or Ebitda, increased 17 per cent to Dh6.8 billion in the three-month period ended June 30, 2015, while Ebitda margin increased five percentage points to 51 per cent year-on-year.
In its home market, its active subscriber base grew to 11.3 million subscribers in the second quarter of 2015.
For Maroc Telecom Group, the subscriber base was 50.8 million customers at the end of the second quarter of 2015, representing a year-over-year growth of 32 per cent.
Nigeria continues to provide strong subscriber growth with year-over-year growth of 18 per cent to 23 million subscribers as at June 30, 2015.
Eissa Al Suwaidi, chairman of Etisalat Group, said the company continues to strengthen its position as a leading operator in emerging markets despite the challenges in some of its operating markets.
"This is an indicator of the company's strong foundations and we remain committed to our long-term vision for continued success," he said.
Ahmad Julfar, group chief executive officer of etisalat, said: "This quarter's six per cent increase in revenue is an indicator that long-term strategy for sustainable growth in our markets is the right approach, despite the decline in profit."
"While the future is full of exciting potential, technological innovation in the telecommunication sector is key to realising that potential. In this quarter, etisalat has taken further steps forward in developing the next generation of mobile technology," he said.
"Working closely with our global partners, etisalat continues to explore and initiate the future networks and platforms, which are critical to enabling smart city solutions," he said.
"Whether it is more efficient public services or streaming entertainment online, etisalat is leading the way in developing platforms that will be critical to success. It is a dynamic future that is enabled by the telecom sector, and one that etisalat is helping to shape," the chief executive said.
The company's board of directors has approved an interim dividend distribution for the six-month period ended June 30, 2015, at the rate of 40 fils per share, representing an increase of 14 per cent year-on-year.

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