Etisalat Group, on Wednesday announced that its consolidated net profit after Federal Royalty increased year-over-year by 51 percent to $626 Million in the second quarter of 2016. It resulted in higher profit margin of six points to 17 percent.
The increase in profit is attributed to lower finance costs, incurring forex gain during the period as compared to forex loss in the same period of last year, lower Federal Royalty and lower share from associates and discontinued operations.
"This was partially offset by increase in depreciation charges and taxation," the annual report said.
Consolidated revenues amounted to $3.6 Billion and increased year over year by two per cent.
Etisalat Group's consolidated revenue for the second quarter of 2016 amounted to $3.6 Billion with growth of two percent in comparison to the same period last year and four per cent quarter-over-quarter.
In the UAE, revenue in the second quarter increased year on year by three percent to $2.1 Billion and six per cent quarter-over-quarter.
The revenues rose due to growth of the subscriber base couple with launch of new products and bundled propositions to consumer and enterprise segment, strong performance of mobile and fixed broadband segments and increased offering of business solution, digital and ICT services.
Consolidated capital expenditure dropped year-on-year by 17 percent to $490 Million in the April-June period.
In the UAE, capital expenditure was committed to modernisation of mobile network and maintenance. "Capital expenditure during the quarter amounted to $163 Million, a 33 percent decrease," the telecom said.
Capital expenditure in international operations dropped by four per cent to $327 Million compared to the same period last year and represented 67 percent of total group capital expenditure, it said.
Etisalat Group aggregate subscribers as at June 30, 2016 was 163 million reflecting anet gain of 1.1 million during the last 12 month period.
Subscribers in the UAE grew seven per cent year-on-year to 12.1 million.
The quarter on-quarter growth of subscribers on its home turf was one percent.
In the UAE, the mobile subscribers were up nine per cent year-on-year to 10.2 million of which 25 percent were high quality post paid segment.
However, the land line voice only subscribers contracted 12 percent year-on-year due to migration to the eLife segment that continued to drive consistent growth with 10 per cent year-on-year increase.
Total broadband segment grew by five percent year-on-year to 1.1 million subscribers.
The telecom reported one percent increase in its total subscribers to 163 million in the second quarter of the year.
Etisalat Group chairman Mohammed Eissa Al Suwaidi, said: "We have succeeded in increasing our profits in the first half of 2016 and enhancing our performance in a way that fulfils our long fruitful journey."
He said: "Our customers are vital to anything that we do and they are the main reason behind our success. We highly appreciate our customer's trust, which pushes us to continue our hard work to meet their needs and aspirations in every market where we operate."
Engineer Saleh Al Abdooli chief executive officer of Etisalat Group, said: "Etisalat Group's performance in the first half of 2016 maintains our record of solid performance and consolidates our position as leading operator in emerging markets."
Haseeb Haider
