Dubai: Etisalat, or Emirates Telecommunications Corporation, said on Thursday it posted strong results in 2014 driven by strong performance of domestic operations and the consolidation of Maroc Telecom operations.
The company stated that it posted net profits of Dh8.9 billion on revenues of Dh48.8 billion in 2014. It added that it has successfully completed the acquisition of a 53 per cent stake in Maroc Telecom. Etisalat and Maroc Telecom signed a Sale Purchase Agreement related to etisalat’s shareholding in the operating companies under Atlantique Telecom in West Africa.
“With the commitment of our world-class employees across 19 operations, the continued support of our investors, and the input and cooperation of our millions of subscribers, 2015 will no doubt continue this pattern of success,” Eisa Al Suwaidi, Chairman of etisalat, said in a statement.
The company’s EBITDA or Earnings Before Interest, Taxes, Depreciation and Amortisation totalled Dh23.4 billion, resulting in an EBITDA margin of 48 per cent in 2014.
Earnings per share (EPS) amounted to Dh0.27 in the fourth quarter of 2014 and Dh1.12 for the full year of 2014.
Milestone year
“2014 was a milestone year for etisalat. It was a year where we have taken the Group forward in terms of our objective to be recognised as the leading telecoms operator in emerging markets,” said Group Chief Executive Officer Ahmad Julfar.
“Our expansion in Africa, which increased our international presence to 19 markets across the Mena region, was accompanied by strong figures in our international operations, the continuance of steady growth for our operations in the UAE, and an accelerated effort to spearhead the development of 5G technology through leading global partnerships,” he added.
The company said its growth in emerging markets will help secure long-term success for etisalat, but the rapid growth of data usage holds the key to the future.
In 2014 etisalat was the first operator in the Middle East to offer Embedded SIM technology in line with a standard international specification.
“The future is full of challenges, but etisalat is well placed to meet them. With the continued support of the UAE Government, our shareholders, and our customers, I have no doubt that we are up to the task of continuing the impressive track record of success that has been our hallmark.” Julfar said.
Attractive bet
“Telecom companies would continue to be an attractive bet especially with strong growth in population,” said Tariq Qaqish, head of asset management at Al Mal Capital.
The UAE had 16.96 million active mobile subscriptions and 1.04 million internet subscribers until November 2014, according to the Telecommunications Regulatory Authority (TRA).
Etisalat provides telecommunications services, which includes wireless, data and voice communication services, and competes with du for the market share.