Etisalat posts Dh1.23b net in first half

Etisalat maintained its high profitability, earning a net profit of Dh1.23 billion for the first half of 2002.

The growth could not be determined as last year's half-yearly figures were not made public. Etisalat earned a net profit of Dh2.5 billion for 2001, its highest net profit ever.

Analysts said regional telecommunications companies have generally done well, and though there is an improvement, Etisalat's rate of growth in its first half profit may be lower than that of other regional telcos.

As a listed company, it is mandatory for Etisalat to furnish its results every quarter. This year's first six-month results showed Etisalat earned total revenues of Dh3.842 billion compared with the total revenues of Dh7.557 billion for the year ended December 2001.

Shareholders' equity increased to Dh10.4 billion ending June 2002, compared with Dh9.1 billion in December 2001.

Total assets grew to Dh9.06 billion ending June 2002, as compared with Dh9.1 billion in December 2001.

Investments stood at Dh534 million ending June 2002, while it reached Dh609 million in December 2001.

"The market reaction is not very positive after Etisalat's first six months results were announced. Compared to other telecommunications companies in the region, Etisalat's growth has not been that good during the first half," a senior analyst confirmed.

Q-Tel posted an 18 per cent growth in net profit while Batelco clocked 16 per cent growth during the same period.

However, analysts forecast that by this year-end Etisalat may still post a high net profit and a good growth. "We expect a 7-10 per cent growth in Etisalat's net profit this year end," said a broker on ADSM.

"Etisalat has investments in Q-Tel and the dividends earned for the first half are yet to be accounted for," he added.

Etisalat's shareholders are hoping bonus shares will be issued, although this is possible only through a Cabinet approval. The authorised capital has already reached Dh3 billion.

"If bonus shares are issued, it will help the share price move up substantially," he said. Etisalat's shares are currently hovering around Dh121 per share.