Emirates Telecommunications Corporation (Etisalat) reported a 23.21 per cent increase in net profits for the first half of this year to a whopping Dh2.11 billion, up from Dh1.71 billion for the corresponding period last year.

Compared to last year's 19 per cent growth in profits which at the end of 2004 stood at Dh3.4 billion, Etisalat's net profit is now poised to cross Dh4 billion by the end of this calendar year.

Its net revenues also rose 23.17 per cent to Dh6.2 billion compared to Dh5.03 billion for the first half of 2004.

Earnings per share increased to Dh0.58 from Dh0.47 over the same period last year.

The Etisalat board of directors declared first interim dividend for 2005 at a rate of Dh0.25 per share to be paid effectively from July 20.

Etisalat's net assets increased by Dh2.11 billion compared to the end of 2004, or 16 per cent to Dh15.40 billion by June 30, 2005.

Etisalat chief executive Mohammad Hassan Omran on Saturday sent the results to the Abu Dhabi Securities Market.

During this period, the corporation spent Dh506.9 million on capital expenditure.

It acquired a 50 per cent stake in Atlantique Telecom and was successful in its bid for a 26 per cent stake in Pakistan Telecommunications Corporation for $2.59 billion.

It also pulled out of a recent bid for a 55 per cent share of Turk Telecom, Turkey's largest fixed line operator, to a consortium led by Saudi Oger.

During the second quarter, Etisalat participated in a right issue by Sudatel and invested an additional Dh37.41 million.

Big push to mobile telephony

Despite enjoying a monopoly, Etisalat has successfully managed to push UAE's mobile penetration to 94.18 per cent by the end of June, one of the highest in the world.

In May, it celebrated the subscription of four million users among a population base of 4.32 million.

During the first half of the current year, fixed telephone lines grew by four per cent to 1,209,214 at the end of June while mobile lines grew by 23 per cent to 4,068,847 and internet lines grew by 12 per cent to 371,882.

However, with 1.2 million subscribers, UAE's tele-density reached 27.99 per cent at the end of June.

Etisalat's major growth is currently coming from the mobile telecom sector. According to its latest annual report, revenue from mobile phones accounted for 55.2 per cent of Etisalat's revenues while fixed phones made up only 25.9 per cent.

Mobile subscribers grew by 385,847 from 3,683,000 at the end of 2004 to 4,068,847 last month.