Dubai: Etisalat Group’s third-quarter net profit fell 8.45 per cent to Dh1.95 billion compared to Dh2.13 billion during the same period last year.
Consolidated revenues for the third quarter amounted to Dh12.99 billion, witnessing a decline of one per cent in comparison to the same period last year of Dh13.12 billion.
The telecom operator, which operates in 18 markets across the Middle East, Africa and Asia, attributed the weak performance to higher depreciation and amortisation charges, and incurring higher forex losses during the period, mainly from Morocco and West African operations and Egypt.
The international consolidated operations represent 44 per cent of group’s consolidated revenue.
Revenues from the UAE operations grew year on year by six per cent to Dh7.2 billion.
“Profit was down mainly due to lower earnings before interest, tax, depreciation and amortisation [ebitda] in Pakistan which was due to competition, lower subscriber base and lower revenue from long distance international incoming traffic business, higher interconnection and termination costs,” Sony John, programme manager for telecoms and media at research firm International Data Corporation, told Gulf News.
John believes the telecom industry will continue to grow in the coming years driven by increased demand for data services and traction for enterprise solutions.
Etisalat Group aggregate subscribers reached 170 million compared to 180 million during the same period last year.
Future growth
Ahmad Julfar, Etisalat Group’s Chief Executive Officer, said in a statement that the group is well-placed to deliver the advanced and innovative solutions that will be the key to generating future growth and profitability.
In the UAE, mobile subscriber base grew year on year by nine per cent to 9.7 million subscribers representing a net addition of 782 thousand while postpaid segment grew by 298 thousand subscribers, representing year on year growth of 21 per cent.
“Etisalat is poised for interesting times ahead. Etisalat has already developed world-class telecom infrastructure in the UAE and would be looking to replicate the same in other markets like Morocco, Nigeria, Mauritania, etc. With 5G mobile networks around the corner, etisalat and other telcos would be looking at increased revenues via larger volumes of home automation and interconnected devices (IoT), content streaming on smartphones, and m-commerce solutions for government, corporates and consumers.” Gagan Bhalla, CEO of market research and analysis services provider AMRB.
The group’s consolidated expenditure increased year over year by five per cent to Dh1.9 billion, resulting in capital intensity ratio of 15 per cent. The increase is mainly due to the UAE operation and Maroc Telecom Group.
