Revenues edge up at Etisalat Group

Etisalat, which directly and indirectly operates in about 17 countries across the Middle East, Africa and Asia, made a net profit of Dh2 billion in the three months to March 31, the company said in a statement.

Etisalat had 165 million subscribers as of March 31, down 1 per cent from the same point a year earlier due to disconnections because of mandatory registration schemes in various markets. Sarah Dea / The NationalShow less

Etisalat Group revenues rose 1 per cent during the first three months of the year, boosted by sales in the UAE and Egypt and the Maroc Telecom group.

Etisalat Group, the country’s largest listed company, said on Monday that revenues across its 18-country footprint rose to Dh12.9 billion during the first quarter, compared with Dh12.7bn a year earlier, with much of the growth coming from the UAE, Egypt and the sub-Saharan African operations of Maroc Telecom.

However, currency fluctuations hit the operator’s bottom line. Net profit across the group fell 8 per cent to Dh2bn during the quarter, compared with Dh2.17bn last year.

Etisalat said that higher min­ority interest costs ate into pro­fits, which came in spite of lower royalty payments to the UAE federal government.

“Despite a challenging set of circumstances facing the telecoms industry today, Etisalat Group continues to deliver strong performance and value for its shareholders and customers,” said the group chief executive Saleh Al Abdooli. The telco last month said that it was undergoing an internal restructuring exercise, scheduled to be completed by June, following the departure of the former group chief executive Ahmad Julfar.

Mr Al Abdooli, who took up the reins of the group at the end of March, said the restructuring was designed to boost effi­ciency and enhance the customer experience.

The move comes as Etisalat faces increased competitive and regulatory pressures globally, particularly in both Nigeria and Paki­stan, where subscriber numbers fell during the quarter.

The group’s total subscriber base stood at 165 million at the end of March, a year-on-year net loss of 1.8 million, affected by a lower user base in Pakistan and a disconnection programme in Nigeria linked to a regulator mandated SIM registration process.

However, UAE subscribers rose 6 per cent year-on-year to 12 million, thanks to a 7 per cent increase in mobile subscribers.

Etisalat shares ended the day down 2.1 per cent at Dh18.65.

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