Etisalat first-quarter profit lower but revenues rise

Abu Dhabi-listed Etisalat reported a 8 per cent fall in first-quarter net profit on Tuesday. Etisalat, which directly and indirectly operates in about 17 countries across the Middle East, Africa and Asia, made a net profit of Dh2 billion in the three months to March 31, the company said in a statement. This compares with […]

Abu Dhabi-listed Etisalat reported a 8 per cent fall in first-quarter net profit on Tuesday.

Etisalat, which directly and indirectly operates in about 17 countries across the Middle East, Africa and Asia, made a net profit of Dh2 billion in the three months to March 31, the company said in a statement. This compares with a profit of Dh2.18bn a year earlier.

Analysts at EFG Hermes and SICO Bahrain forecast the former monopoly would post a quarterly profit of Dh1.93bn and Dh1.99bn respectively.

Etisalat said its lower profit was due to factors including higher depreciation expenses and foreign exchanges losses in the quarter against currency gains in the corresponding period of 2015.

The profit fall came despite Etisalat generating first-quarter revenue of Dh12.85bn, 1 per cent up from Dh12.73bn a year earlier.

Etisalat had 165 million subscribers as of March 31, down 1 per cent from the same point a year earlier. It cited disconnections which were a result of mandatory registration schemes in various markets.

Etisalat appointed Saleh Al Abdooli as chief executive in March, after former head Ahmad Julfar resigned for personal reasons earlier in the month.

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Source: Business

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