Dubai: Etisalat said its second-quarter net profit tumbled by 40 per cent to Dh1.5 billion compared to Dh2.5 billion a year earlier due to its affiliate’s Etihad Etisalat (Mobily) accounting errors and forex losses.
Mobily’s fortunes started to unravel last November when it began disclosing accounting errors and restated 18 months of its earnings due to excessive booking of revenue from wholesale broadband leases and mobile promotional campaigns.
Etisalat, which owns 27.45 per cent of Mobily, said last month that the Saudi telecom operator’s revisions and provisions will negatively impact its consolidated net profit by around Dh204 million this year.
The telecom operator’s consolidated revenues for the second quarter amounted to Dh13.3 billion and increased year over year by six per cent.
The Board of Directors has approved an interim dividend distribution for the six months period ended June 30, 2015, at the rate of 40 fils per share, an increase of 14 per cent year on year.
Interim dividend distribution of 40 fils per share will commence August 18 to those shareholders registered at the close of the business day on August 9.
Ahmad Julfar, CEO of Etisalat Group, said that quarterly revenue is an indicator that the group’s long-term strategy for sustainable growth is on track.
