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Etisalat Q3 profit jumps 28%

Emirates Telecommunications Corporation, popularly known as etisalat, on Tuesday said its third-quarter net profit jumped 28 per cent to Dh2.2 billion, as it gained from selling its stakes in an Indonesian telecom XL Axiata.

“Consolidated net profit post federal royalties increased year-over-year by 28 per cent to Dh2.213 billion, which was achieved through higher Ebitda in addition recognising profit on disposal of asset,” the Abu Dhabi-based telecom firm said in a statement.

Etisalat sold 775 million shares of its investment in XL Axiata, representing 9.1 per cent of outstanding share at a price of 6,300 rupiah.

Consolidated revenues remained flat at Dh8 billion, as revenues from its international operations rose seven per cent to Dh2.4 billion, contributing a big chunk of 30 per cent.

Consolidated capital expenditures, however, declined year-over-year by 11 per cent to Dh912 million resulting in capital intensity ratio of 11 per cent, two points lower than prior year.

Capex level in 2012 were impacted by the deconsolidation of Indian operation and slower FTTH investment as compared to prior year.

Capital spending during the quarter focused on enhancing coverage and deployment of 3G networks and expanding LTE rollout.

In the UAE, capital spending in the quarter reached Dh305 million, representing a decrease of 17 per cent over the same period of last year. Capital investment focused on ensuring 4G leadership. “Over the past three months, we have recorded significant growth in our international operations, despite regional socio-economic tensions,” Ahmad Julfar, the group’s chief executive officer, said.

Etisalat said the group’s aggregate subscriber number grew to 130 million by the end of September, up 20 per cent on year.

In the UAE, etisalat’s subscriber base grew eight per cent to nine million. Mobile subscribers were up 11 per cent at seven million, despite domestic competition. Fixed-line subscribers reached 1.1 million representing year-on-year decline of seven per cent. However, this decline is due to the successful migration of customers to eLife segment that grew by 61 per cent to 0.48 million subscribers. Internet subscribers grew by nine per cent to 0.8 million.

Julfar said: “Etisalat has strong competitive positioning across our 15 markets of operations in the Middle East, Africa and Asia, having built and invested in the networks of the future, including FTTH and LTE in countries like the UAE and Saudi Arabia, or being the first provider of 3G services in Pakistan and Afghanistan, and we will continue to study means to enhance our services to existing customers, and look at expanding in other markets should the right opportunities arise.”

“Our focus moving forward will be on developing the level of service and meeting the expectations and demands of our customers in the UAE and our key markets, as well as data services.” Etisalat’s consolidated debt reached Dh4.955 billion, representing a decline of 23 per cent in comparison to debt balance as of September 2011. Main reason for the decline is the deconsolidation of the Indian operation.

Telecom giant had a consolidated cash balance ofDh12.176 billion as of September 2012 leading to a positive net cash of Dh7.221 billion after deducting the debt balance.

— haseeb@khaleejtimes.com