Abu Dhabi: Etisalat on Sunday reported that annual profits rose by 4 per cent to Dh8.84 billion as the company added 300,000 UAE mobile subscribers in the fourth quarter.
On the year, UAE mobile subscribers, which account for the bulk of the company's profits, rose by 6 per cent to 7.74 million.
The company did not release its full financials as of press time. Accurate figures for the fourth quarter could not be calculated as the company changed its accounting methods to comply with international standards for the first time in 2009.
The estimate beat analysts expectations who had pencilled in Dh8.5 billion for the year. Al Mal Capital had estimated Dh8.56 billion in its third-quarter earnings research note.
In a statement, etisalat chairman Mohammad Omran said the company has been able to reduce its operational expenses despite expanding into 18 countries.
"During the past two years, etisalat has continued its strategy of developing new sources of income," Omran said.
New packages
"We have achieved this by introducing new packages and services which have had the desired effect of sustaining our growth even despite the high penetration level within the country, which today is one of the highest in the world."
In December, the company announced it had completed connecting 100 per cent of Abu Dhabi households with its fibre-optic network to be used to deliver phone, internet and cable television services in one package. Etisalat said the Dh5 billion network would cover 90 per cent of UAE by 2011.
The company did not offer a breakdown of revenues and profits for local versus international operations. As of mid-2009, the company reported it relied on the UAE market for 90 per cent of revenues and 98 per cent of profit.
Omran said last week his company had Dh10 billion in cash on hand to fund international expansion, and was therefore not looking to issue bonds in the near future as had been speculated by industry analysts.
In October, etisalat acquired Sri Lanka's second-largest mobile operator, Tigo, for $207 million (Dh760 million).
The company is also vying for a two-in-one mobile and land networks operation licence in Libya, having submitted an offer worth Dh3 billion.
- Dh8.8b (+4%) Profit for the year
- Dh30.8b (+5%) Revenue for the year
- Etisalat financial results 2009
4th quarter subscriber growth:
- UAE mobile subscribers: 7.74 million (+300,000)
- UAE land line subscribers: 1.31 million (no growth from q3)
- UAE internet subscribers: 1.33 million (+60,000)
