Etisalat Profits Jump on Asset Disposals
Published on: 24th Oct 2012
Note -- this news article is more than a year old.
By: Ian Mansfield
UAE based Etisalat has announced that its third quarter net profits jumped 28 percent to Dhs2.2 billion (USD599 million) thanks to the one off gain from the sale of a 9 percent stake in the Indonesian mobile operator XL Axiata.
Without the sale, profits would have risen by a more modest 9 percent.
Consolidated revenues remained flat at Dhs8 billion (USD2.18 billion), while revenue from international operations grew to Dhs2.4 billion.
The aggregate subscriber base grew annually by 20%, or 22 million customers to 130 million.
In the UAE active subscriber base grew to 9.0 million subscribers representing YoY growth of 8% and QoQ growth of 1%. Mobile subscribers grew to 7 million representing a YoY growth of 11%. Fixed line subscribers reached 1.1 million representing YoY decline of 7%. However, This decline is due to the successful migration of customers to eLife segment (double play and triple play) that grew by 61% to 0.48 million subscribers. Internet subscribers grew by 9% to 0.8 million.
Africa cluster consolidated subscriber base grew to 11 million at the end of September 2012 representing YoY growth of 29% and QoQ growth of 13%. While Asia cluster consolidated subscriber base grew to 8.2 million at the end of September 2012 representing QoQ growth of 6% while declined YoY by 3% as year 2011 included the subscriber numbers of Indian operation that was deconsolidated in March 2012.
Ahmad Abdulkarim Julfar, Group Chief Executive Officer, Etisalat, commented, "Over the past three months, we have recorded significant growth in our international operations, despite regional socio-economic tensions, and we are pleased with the developments we have made across our key markets, specifically in the Kingdom of Saudi Arabia, Egypt and West Africa, as well as Afghanistan and Sri Lanka."
Total consolidated debt reached Dhs4.96 billion, representing a decline of 23% in comparison to debt balance as of September 2011. Main reason for the decline is the deconsolidation of the Indian operation. Most of the existing debt is related to international operations to finance networks deployment and the majority of the balance is for long term maturity.