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Etisalat's profit declines in Q2

Rising costs blamed for below expectation results

Etisalat saw rising costs and competition in Q2.
Etisalat saw rising costs and competition in Q2.

Etisalat, the UAE's incumbent operator, posted a second quarter profit of AED 1.59 billion ($434 million), down from 14.9% from AED  1.87 billion compared to the same period last year.

The company's revenues declined slightly in Q2 to reach AED7.9 billion, compared to AED8.05 billion in Q1 2010.

Meanwhile, operating expenses rose by AED3.5 million over the past year to reach almost AED5 billion in Q2.

The profits were below the expectations of analysts polled by news agency Reuters, which had expected a Q2 profit of AED1.87 billion.

As of Q2 2011, Etisalat said that it had 7.5 million mobile subscribers, 1.1 million fixed-line subscribers and 1.4 million internet subscribers.

The telco added that revenue earned from its international operations contributed 25% to overall revenue in the first half of 2011, an increase of 17% compared to the first half of 2010.