Etisalat Posts 17% Rise In Q2 Profit

UAE-based telecommunications group Etisalat announced that net profit during the second quarter of the year rose 17 per cent compared to the same period in 2011 to hit Dhs1.9 billion. The amount also marked a three per cent growth over the previous quarter, Etisalat said in a statement.

The company’s consolidated revenues reached Dhs8.25 billion, an increase of four per cent year-on-year, while EBITDA rose by 16 per cent to Dhs4.3 billion.

Etisalat, which operates in 16 countries, said that revenue from international operations grew by 14 per cent to Dhs2.3 billion.

“We have seen a year-on-year increase of 20.5 per cent in operating profit and 17 per cent net profit on the back of strong market development in Egypt, Benin, Gabon, Togo, Afghanistan and Sri Lanka,” said Etisalat’s new chairman Eissa al-Suwaidi.

“Our strategy is clear. Following the industry trend to invest in overseas markets over the past decade, we are now focusing on creating value in high population, high growth markets such as Saudi Arabia, Egypt, Nigeria, Pakistan and Afghanistan,” he added.

Al Suwaidi, along with six new members, were appointed to Etisalat’s board earlier this month and are tasked with reviving the company’s falling profits.

Etisalat, majority owned by the Emirates Investment Authority, has reported falling profits in seven of the past nine quarters and has been struggling to boost its domestic market share.