Etisalat posts 27% rise in profit for 2012
UAE incumbent posts solid results with revenues and profits up
Etisalat Group posted a net profit before royalty of AED13.2bn ($3.59bn) for 2012, a rise of 27% year on year, while revenues reached AED32.9bn, up 2% compared to 2011.
Net profit after federal royalties increased year on year by 15% to AED6.7bn.
Consolidated operating profit reached AED16.9bn, an increase of 6% year on year, due to high revenues and efficient cost optimisation, Etisalat said.
Etisalat saw revenues decline by 1% in its home market of the UAE, to AED22.7bn for the year. The decline was mainly attributed to a decrease in voice revenues in mobile and fixed segments, although this compensated by growth in the internet and data segments.
Revenues from international operations grew by 11% to AED9.4bn, representing 29% of group consolidated revenues. In Egypt, revenues at Etisalat Misr reached AED5.1bn, up 13% compared to the reported results for 2011. Revenue growth was mainly driven by customer acquisition and growth in mobile data segment.
Etisalat's combined African operations achieved revenues of AED2.8bn, representing an increase of 9% year on year. This growth was attributed to the operations in Benin, Togo and Canar.
In Etisalat's Asia cluster, consolidated revenues grew to AED1.6bn, representing a growth of 11% in comparison to the 2011. Growth was mainly driven by subscriber uptake in Etisalat Afghanistan and Sri Lanka and the launch of 3G services in Afghanistan.
Etisalat Group's subscriber base grew to 139m by the end of December 2012 representing year-on-year growth of 18%.
Ahmad Abdul Karim Julfar, group CEO, Etisalat Group said: "The 2012 results reflected strong performance across the Group operating companies and marking significant steps towards Etisalat Group's vision of becoming one of the leading telecommunications companies across emerging markets.
"Etisalat Group enjoyed a strong increase on net revenue from its international operations in 2012, reflecting the added-value investments Etisalat Group has put in to its operating markets to increase customer retention and acquisition and reinforce its commitment to delivering new technologies and services that help enable communities to transform for the better."
Etisalat's competitor in the UAE, du, released its financial results for 2012 earlier in the week.