Etisalat profit edges up on growing UAE revenue

Etisalat on Tuesday reported an increase in profit for last year on a rise in broadband subscribers in its domestic market and a good performance at its affiliate Maroc Telecom.

The telco said UAE revenue rose by 5.5 per cent as overall group revenue increased 2 per cent to Dh52.36 billion from Dh51.32bn a year earlier.

In its statement to the ADX, Etisalat said that UAE revenue was lifted by “data services, expanded customer base of broadband usage and increased offering of business solutions, digital and ICT services”.

Net profit attributable to equity holders climbed 1.9 per cent to Dh8.42bn in 2016 compared to Dh8.26bn a year earlier, Etisalat said, adding that 2015 figures had been restated. The company did not give details of the changes. However, its annual report for 2015 shows full year group revenues of Dh51.7bn and net profit of Dh8.3bn. In the same year, Mobily, the second-largest mobile operator in Saudi Arabia, in which Etisalat is a major shareholder, was investigated for accounting irregularities that led to the company restating some of its earnings. This had an impact on Etisalat’s accounts for the period.

Etisalat’s fourth-quarter net profit was Dh2.24bn, according to Reuters calculations, as the company did not break out quarterly numbers. Profit in the fourth quarter of 2015 was Dh2.6bn, according to Etisalat’s website. Analysts at Sico Bahrain had forecast a fourth-quarter 2016 profit of Dh2.24bn and EFG Hermes Dh2.09bn.

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