Etisalat writes down Dh1bn and sees profits fall 23.4%

More than Dh1 billion is wiped from Etisalat's bottom line after India's supreme court cancels its 2G mobile licences.

has written off more than Dh1 billion in profits for last year after an Indian court cancelled 2G mobile licences held by its Indian operations.

The UAE's telecoms giant reported a fall in profits of 23.4 per cent to Dh5.8bn during 2011, while revenues increased 0.9 per cent to Dh32.2bn

Etisalat wrote down the value of its Indian licences, alongside goodwill carried, by Dh3.04bn before its Federal royalty. After the royalty, the company took a Dh1.02bn hit to its bottom line.

Last week, India's supreme court cancelled 122 mobile phone licences which it had issued in 2008, affecting eight operators including Etisalat and Bahrain's Batelco.

Etisalat has previously argued that Swan Telecom had acquired the licences in January 2008, prior to its takeover by Etisalat later that year.

"Etisalat is continuing to assess the legal consequences of the supreme court's decision and its strategic options in India," the company said in a statement. "Based on the outcome of our assessment and certain developments, there may be further impacts on our financial statements which will be reflected in due course."

One of the biggest corruption scandals in Indian history, the 2G scandal is estimated to have cost the country's government $39 billion, according to official estimates.