Etisalat registers Dh2.2bn net profit

Etisalat Group's consolidated net profit after Federal Royalty amounted to Dh 2.2 billion resulting in a net profit margin of 17% and increased year over year by 8%, according to the group's consolidated financial statement for the three months ending 31st March 2015.

It added that aggregate subscriber base reached 173 million representing net addition of 28 million subscribers during the last 12 months.

The statement said the consolidated revenues for the first quarter amounted to Dh 12.9 billion and increased year over year by 30%, while consolidated EBITDA for the first quarter totalled Dh 6.6 billion, representing an increase of 33% year on year and resulting in EBITDA margin of 51%.

Etisalat completed the sale of the six West African operations of Atlantique Telecom to Maroc Telecom. It has acquired additional equity in its subsidiary Canar and increased its stake to 92.3%.

Etisalat also won two awards for innovation at the GSMA's Global Mobile Awards: "The Best Use of Mobile for Retail, Brands & Commerce" category for its Mobile Cashier product offering and "The Mobile Connect Award for Best Authentication & Identity Solution" for Etisalat Mobile Connect service.

It was the first to launch 4G LTE, eLife services over VSAT technology in the Middle East region.

Etisalat shareholders approved Board's recommendations to increase the authorised share capital to Dh 10 billion, in addition to a full year cash dividend for fiscal year 2014 of 70 fils and a 10% bonus share at the Corporation's Ordinary General Assembly Meeting and Extraordinary General Assembly Meeting held on 24 March 2015.

Ahmad Julfar, Group Chief Executive Officer, Etisalat commented, "The strong financial results in the first quarter of 2015 was not only built upon our strong performance in 2014, but also provides a solid foundation for the remainder of the year. Continued growth in revenue, profits and subscribers in Q1 continues a pattern of growth that we have experienced over a long period. It is this solid foundation which allows us to move forward in confidence as the leading operator in emerging markets, delivering advancements in each of the countries we operate in.

He added that "The expansion of our award winning Mobile Connect service extends our first in the region offering across all the majority of our operations, highlighting the leadership we are playing in the region. Mobile Connect empowers businesses and individuals by protecting identities both online and through mobile devices. It epitomises our approach to business; creating innovative solutions and providing advancement in each of the markets we operate in. It is services such as this which will determine that we remain ahead of the game."

Julfar continued, "Whilst our operations across the region continue to grow, our position in the UAE remains as strong as ever. Subscribers to our range of services continue to increase and we are constantly looking to bring new solutions to market. In this quarter we launched trials for advanced single carrier technology, which will bring even greater speeds to customers and we continue to support the Government's drive for Smart Cities."

"To make initiatives such as Smart Cities a reality requires innovation and investment. Our strong financial performance provides the base to move forward, as we cannot afford to stand still in the rapidly developing telecommunications industry. That's why we continue to forge strong partnerships which will help secure our future."

He elaborated further, "Data is the future and we must develop ways of making this profitable for our shareholders and of delivering the future solutions that will help governments, businesses and individuals maximise its potential. 5G, M2M and the Internet of Things open up more exciting possibilities about how governments can deliver services, how businesses operate and how individuals live their lives. Telcos are the enabler of this future and we must ensure Etisalat is at the forefront of delivering solutions that work for all.

Julfar concluded, "Quarter 1 has provided a strong start to the year, but, in line with our business strategy, we will continue to expand our service offering across our footprint in order to diversify our revenue base and cement our regional leadership position."

Etisalat Group aggregate subscribers as at the first quarter of 2015 was 173 million reflecting a 19% increase year over year. The net addition of 28 million subscribers in the year was mainly a factor of consolidation of Maroc Telecom and strong growth in UAE, Nigeria, and Afghanistan. Quarter over quarter subscribers increased by 2%.

In the UAE the active subscriber base grew to 11.4 million subscribers in the first quarter of 2015 representing a year on year growth of 4% and quarter over quarter growth of 3%.

For Maroc Telecom the subscriber base was 51.6 million customers at the end of the first quarter of 2015, representing a year over year growth of 32%.

Nigeria continues to evidence strong subscriber growth with year over year growth of 19% to 22.2 million subscribers as at 31st March 2015. Quarter over quarter growth was 5%.

Etisalat Group's consolidated revenue for the first quarter of 2015 was Dh 12.9 billion with growth accelerating by 30% in comparison to the same period last year. In the UAE, revenue in the first quarter grew year on year by 11% to Dh 7.2 billion and 3% quarter over quarter. This growth was as a result of strong performance in voice and data in both the fixed and mobile segments.

For international consolidated operations revenue for the first quarter of 2015 increased year over year by 69% to Dh 5.6 billion, representing 44% of Group consolidated revenue.

Maroc Telecom consolidated revenue for the first quarter of 2015 amounted to Dh 2.9 billion. In local currency revenue grew year over year by 10.2% driven by consolidation of newly acquired operations and growth in historic international subsidiaries.
Source: WAM