Etisalat’s second-quarter net profit rises on higher revenue

The company's total profit increased to Dh2.4bn in the three-month period ending June 30

Etisalat, the UAE’s biggest telecoms operator, reported a slight increase in second-quarter net profit on the back of higher revenue.

The total net profit attributable to owners of the company for the three-month period ending June 30 climbed to Dh2.39 billion ($650 million) from Dh2.38bn during the same period last year, the company said in a statement on Thursday to the Abu Dhabi Securities Exchange, where its shares trade.

Net profit in the first six months climbed nearly 4 per cent to Dh4.7bn from the same period a year earlier, as revenue grew more than 3 per cent to Dh26.43bn.

Revenue during the second quarter jumped 5.7 per cent year-on-year to Dh13.21bn. Impairment dropped 25 per cent to Dh246.6m.

“Despite the challenges in our key markets, our businesses delivered growth in revenue, net profit and operating free cashflow,” Hatem Dowidar, chief executive of Etisalat Group, said.

Etisalat, based in Abu Dhabi, was founded in 1976 and is the UAE's oldest telecoms company. It has operations in 16 countries across the Middle East, Asia and Africa, serving more than 156 million customers – an increase of 7 per cent year on year in the second quarter.

Subscriber numbers in the UAE rose 3.1 per cent to 12.1 million, while in Egypt it jumped by 3 per cent to 26.7 million. In Pakistan, the subscriber base increased by 3 per cent to 25.6 million. Etisalat’s operating expenses in the second quarter jumped 12 per cent to Dh8.35bn.

“We will remain focused on investments in futuristic solutions and next generation technologies, enhancing the overall customer experience while delivering long-term value for all our shareholders,” Mr Dowidar, said.

Etisalat is exploring the development of 6G, the next generation mobile network that will allow for much faster and more sophisticated technology use.

The telecoms operator is conducting research and developing international standards that will be the main building blocks to create a 6G network, the company said in June.

Updated: July 29th 2021, 12:47 PM
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