Dubai: Etisalat’s first-quarter profit fell 8.25 per cent year on year to Dh2 billion compared to Dh2.18 billion last year due to higher forex losses. Its consolidated revenues rose one per cent to Dh12.9 billion.
The results were impacted by unfavourable exchange rate movements, mainly in Morocco, Egypt and Pakistan, and aggressive price competition in certain markets.
The telecom operator, which operates in about 17 countries across the Middle East, Africa and Asia, said in a statement that revenues from the UAE operations grew year on year by one per cent to Dh7.3 billion. Revenue growth is mainly attributed to UAE operations and Maroc Telecom group.
Saleh Al Abdooli, Chief Executive Officer of Etisalat Group, said that the Group’s first-quarter results are a continuation of the strong performance the company has achieved over the years.
Despite a challenging set of circumstances facing the telecoms industry today, he said that the Group continues to deliver strong performance and value for its shareholders and customers.
“In order to maintain our long-term growth and track record of performance and achievement moving forward, we must ensure we remain fit-for-purpose. This means delivering the innovative solutions necessary to sustain and further enhance our position as a leading operator in emerging markets,” he said.
In the UAE, revenues during the quarter rose one per cent year-on-year to Dh7.3 billion while revenues from international operations rose four per cent to Dh5.5b despite higher forex losses.
Revenues from international operations contribute 43 per cent to the group’s consolidated revenues. “Growth for Etisalat in the UAE has also been more or less flat, and I suspect that non-voice streams, have contributed more to this,” said Sukhdev Singh, vice-president at market research and analysis services provider AMRB.
“Etisalat’s Maroc Telecom at the same time has registered a seven per cent growth in revenue with three per cent growth in subscriber base, indicating robust growth despite unfavourable currency conditions (rate changes),” he said.
The operator’s revenues from Maroc Telecom grew seven per cent to Dh3.1 billion while registering a nine per cent increase to Dh1.2 billion from Egypt but revenues from Pakistan operations fell by six per cent to Dh1 billion.
Its aggregate subscriber base reached 165 million subscribers, compared to 167 million a year earlier.
In the UAE, the active subscriber base grew to 12 million in the first quarter of 2016 representing year on year growth of six per cent.
Despite a claimed growth in number of subscribers in UAE, Singh said that there is not much corresponding impact on revenues.
Etisalat said that the mobile subscriber base grew year on year by seven per cent to over 10 million, adding 0.7 million subscribers of which 33 per cent was in the postpaid segment.
Fixed line voice subscriber base contracted 12 per cent year on year primarily due to the migration of subscribers to the eLife segment that continued to drive consistent growth with 11 per cent year-on-year increase.
Total broadband segment in the UAE grew by six per cent year on year to 1.1 million subscribers.
