Etisalat's Q3 profit drops 9%

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Etisalats Q3 profit drops 9%
In the UAE, etisalat's revenue grew six per cent to Dh7.2 billion on strong performance in the mobile, fixed broadband and ICT segments. - Supplied photo

Abu Dhabi - Consolidated revenue slips 1% at Dh13b, active subscribers' base grows 7%.

By Haseeb Haider

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Published: Wed 28 Oct 2015, 11:00 PM

Last updated: Thu 29 Oct 2015, 9:24 AM

The Emirates Telecommunication Corporation, or etisalat, said on Wednesday that its net profit fell nine per cent year-on-year to Dh1.947 billion on marginally lower revenues.
However, the corporation, which has stakes in telecommunication companies in 15 countries, reported a 27 per cent quarter-on-quarter increase in net profit.
The telecommunication company paid a sum of Dh1.9 billion in Federal Royalty, which is 11 per cent higher when compared year-on-year.
The decline in net profit after Federal Royalty is chiefly attributed to lower EBITDA, higher depreciation and amortisation charges, incurring higher forex losses and higher royalty charges during the period.
In the UAE, active subscribers' base grew seven per cent year-on-year and quarter-over-quarter growth was two per cent to 11.6 million subscribers at end of the third quarter of the year.
The growth was mainly driven by strong subscriber acquisition in mobile and e-life segments, the telecom said in a regulatory filing to Abu Dhabi Securities Exchange.
"The mobile subscriber base grew year-on-year by nine per cent to 9.7 million subscriber representing a net addition of 782,000 while pot paid segment grew 21 per cent or 298,000 subscribers. Fixed line voice only subscriber segment contracted 11 per cent year-on-year. E-life segment double and triple play maintained its consistent growth with 12 per cent year-on-year increase," it said.
Total broadband segment grew by nine per cent exceeding one million subscribers. Etisalat's total subscribers dropped six per cent year-on-year to 170 million, driven by regulatory imposed control measures in Pakistan and Egypt.
However, comparing with second quarter there was one increase in subscribers due to operations in UAE, Nigeria, Pakistan and Afghanistan.
The telecom's consolidated revenue for the third quarter of 2015 declined one per cent year-on-year to Dh13 billion.
In the UAE, revenue grew six per cent to Dh7.2 billion as a result of strong performance in the mobile, fixed broadband and ICT segments. The telecommunication giant spent Dh700 million in capital expenditures in the quarter to focus on its network improvement ad building ICT capabilities. Capital expenditures increased 11 per cent in comparison to the same period last year and decreased 18 per cent quarter-on-quarter.
Ahmad Julfar, group chief executive officer of Etisalat Group, said the company is in strong position to meet the challenges of the fast-evolving telecommunication sector and move forward with confidence.
"There are clear challenges ahead for the telecommunication sector," the group CEO said.
He was of the view that consumer behaviours and new technologies are rapidly changing the industry.
"Etisalat Group's concerted focus is to lead that change. The future will be bright for those who adept and invest today in what consumer will demand tomorrow," he said.
Total consolidated debt decreased Dh700 million to Dh23.3 billion from Dh24 billion in the same period last year. As at September 30 2015, the total amounts issued under the global medium term note program was Dh14.9 billion.
Consolidated cash balance amounted to Dh18.3 billion as of September 30 leading to a debt position of Dh5 billion.

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