Etisalat, the country's biggest telecoms company, has recorded a 70 per cent leap in fourth-quarter profit.
The company achieved net profit of Dh1.45 billion in the three months to December 31, according to Reuters calculations.
Full-year profits reached Dh7.08bn compared with Dh6.74bn a year earlier.
“Etisalat’s revenues rose from Dh32.95bn in 2012 to Dh38.85bn in 2013, but more than half of that increase was due to the consolidation of Etisalat’s operation in Pakistan – that is to say the Pakistan unit was included in the 2013 results, but not in 2012,” said Matthew Reed, an analyst at Informa Telecoms and Media in Dubai.
“One clear, positive development is that Etisalat’s revenues in the UAE rose from Dh23.89bn in 2012 to Dh25.96bn in 2013, probably due quite largely to the improving economic conditions in the country.”
Etisalat, which had previously focused on international expansion, is now concentrating on developing its domestic market, where a boom in smartphone handset sales is helping to drive revenue growth.
Etisalat has faced some challenges in international markets such as Egypt, where a weakening currency has hit revenues. The company’s operations in Tanzania and Sri Lanka are also facing competitive pressures. Etisalat operates in 15 markets. Reuters said Etisalat’s Dh20bn deal to buy Vivendi’s 53 per cent stake in Maroc Telecom is expected to be completed by the end of May and is currently awaiting regulatory approval from the countries in which Maroc operates.
Etisalat’s local rival, du, has reported a net profit after royalities of Dh1.99bn for 2013.
The recent introduction of the mobile number portability (MNP) service, which allows users to switch between Etisalat and du while keeping the same phone number, led to the transfer of 23,000 numbers between the two firms, the Telecommunications Regulatory Authority said last month.
* With Reuters
selgazzar@thenational.ae
Follow us on Twitter @Ind_Insights
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High fever (40°C/104°F)
Severe headache
Pain behind the eyes
Muscle and joint pains
Nausea
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Rash
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
The team
Fashion director: Sarah Maisey
Photographer: Greg Adamski
Hair and make-up: Ania Poniatowska
Models: Nyajouk and Kristine at MMG, and Mitchell
Stylist’s assistants: Nihala Naval and Sneha Maria Siby
Videographer: Nilanjana Gupta
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company
Results
Stage seven
1. Tadej Pogacar (SLO) UAE Team Emirates, in 3:20:24
2. Adam Yates (GBR) Ineos Grenadiers, at 1s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 5s
General Classification
1. Tadej Pogacar (SLO) UAE Team Emirates, in 25:38:16
2. Adam Yates (GBR) Ineos Grenadiers, at 22s
3. Pello Bilbao (ESP) Bahrain-Victorious, at 48s
COMPANY PROFILE
Company name: Klipit
Started: 2022
Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant
Based: Dubai, UAE
Industry: Digital receipts, finance, blockchain
Funding: $4 million
Investors: Privately/self-funded
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
Director: Nag Ashwin
Starring: Prabhas, Saswata Chatterjee, Deepika Padukone, Amitabh Bachchan, Shobhana
Rating: ★★★★
Victims of the 2018 Parkland school shooting
Alyssa Alhadeff, 14
Scott Beigel, 35
Martin Duque, 14
Nicholas Dworet, 17
Aaron Feis, 37
Jaime Guttenberg, 14
Chris Hixon, 49
Luke Hoyer, 15
Cara Loughran, 14
Gina Montalto, 14
Joaquin Oliver, 17
Alaina Petty, 14
Meadow Pollack, 18
Helena Ramsay, 17
Alex Schachter, 14
Carmen Schentrup, 16
Peter Wang, 15
RACECARD
9pm Maiden (PA) Dh70,000 (Dirt) 2,000m
9.30pm Handicap (TB) Dh70,000 (D) 2,000m
10pm Al Ain Cup – Prestige (PA) Dh100,000 (D) 2,000m
10.30pm Maiden (PA) Dh70,000 (D) 1,800m
11pm Wathba Stallions Cup – Handicap (PA) Dh70,000 (D) 1,600m
11.30pm Maiden (PA) Dh70,000 (D) 1,400m
12am Maiden (PA) Dh70,000 (D) 1,400m
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Cheeseburger ingredients
Price for a single burger £0.44
Price for a single bun £0.17
Price for a single cheese slice £0.04
Price for 10g Gherkins is less than £0.01
Price for 10g ketchup is less than £0.01
Price for 10g mustard is less than £0.01
Price for 10g onions is less than £0.01
Total 68p
Credit: Meal Delivery Experts
