Etisalat net profit rises 15 per cent

Etisalat yesterday said its net profit last year rose 15 per cent year on year, helped by the partial disposal of an investment and lower impairment losses, but it paid a higher royalty fee.

It made a 12-month net profit of Dh6.74 billion (US$1.84bn), up from Dh5.84bn in 2011, the telecoms company said in a statement posted on the Abu Dhabi Securities Exchange website. Profit during the year was mainly affected by the new UAE royalty scheme, gains from the part-disposal of its investment in Indonesia's XL Axiata and fewer impairment charges related to investments in Pakistan and Sudan, Etisalat said in the statement.

The company's revenues last year amounted to Dh32.9bn, slightly up from Dh32.2bn in 2011. It booked impairment losses of Dh2.83bn compared with Dh3.04bn in the same period a year earlier, while making a gain of about Dh860 million last year from the disposal of investment in an associate.

Etisalat made a fourth quarter net profit of Dh854m versus Dh704m a year earlier. It paid a royalty fee of Dh6.45bn last year, up from Dh5.84bn in the year before. A new royalty rate structure was set in December by the UAE federal government for five years from 2012 to 2016 for Etisalat and rival local operator du.

The group's total subscriber base grew by 18 per cent year on year to 139 million at the end of December, Etisalat said. The company's board has proposed a dividend of 45 fils per share for the second half of 2012, taking its total payout for last year to 70 fils per share. Etisalat shares were suspended from trading yesterday in Abu Dhabi.

* Dow Jones