Etisalat's H1 profit surges 37.1%

UAE telecom major etisalat has posted a net profit of Dh5.1 billion for the first half of 2008, which is 37.1 per cent higher over the 2007 figures of Dh3.73bn as a result of strong growth in subscriber numbers.

Announcing the half-yearly results yesterday, etisalat said in a statement that the net profits for the second quarter reached Dh2.99bn compared to Dh1.89bn in the same period of 2007.

Mohammad Hassan Omran, Chairman of etisalat, said: "Our results in the first half of the year and in the second quarter in particular, have been excellent."

He said subscriber numbers were growing strongly and in the UAE alone, mobile phone customers have reached 6.83 million – an increase of seven per cent compared to the end of 2007. The number of total fixed line customers with etisalat is now 1.35 million and the number of internet customers has touched 1.02 million, he added.

According to Omran, etisalat achieved several major landmarks during 2008.

"Earlier we attained the rank of the largest telecommunications company in the Middle East and one of the 14 largest in the world – a clear sign that our strategy to become one of the largest 10 operators is on track."

Etisalat recorded net revenues of Dh6.38bn for the second quarter of 2008 and Dh12.44bn in total for the first half of the year. This shows an increase of 24 per cent, compared to the first half of 2007 (Dh10.059bn).

Total assets reached Dh30.70bn, an increase of 19 per cent (Dh4.80bn) compared to last year's total. Profits per share for the first six months increased to Dh0.85 against Dh0.62 for the same period in 2007.

Compared to the same period last year, the operating profit excluding the impact of Federal royalty on gain on disposal of shares in an associate (Etihad Etisalat Company) increased by Dh555 million to Dh4.035bn. In accordance with the Saudi Royal Decree establishing Etihad Etisalat Company, the founding shareholders were required to reduce the shares by 20 per cent within the first three years of the company's incorporation.

Accordingly etisalat reduced its equity interest in Etihad Etisalat from 35 per cent to 26.25 per cent. The transaction was completed and the proceeds from disposal were received by the corporation in April. Gain on disposal of these shares amounting to Dh1.78bn was recognised by the corporation in the second quarter of 2008.

On May 12, the group acquired an additional 12 per cent (118,719 shares) of the equity in Atlantique Telecom for Dh251mn.

This increased the corporation's shareholding to 82 per cent (811,244 shares).