UAE's Etisalat Q2 net profit up 17%

The Etisalat Group has contributed approximately 5% to the UAE's GDP over the last five years, the CEO said

Abu Dhabi-based telecom major Etisalat has announced a second-quarter net profit (after federal royalty) of AED 1.9 Billion, a jump of 17% over the same period last year.

While the consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) rose by 16% to AED 4.3 billion (1 AED=USD 0.27)over the same period last year, its EBITDA margin improved to 52%.

Sequentially, the net profit of the company rose by 3%.

The group said its consolidated revenues increased by 4% year-on-year to AED 8.3 billion , while revenue from international operations grew by 14% to AED 2.3 billion during the period.

 According to a company statement today, its consolidated capital spending increased by 1% to AED 0.9 billion, representing 10% of the consolidated revenues.

The company said it had a positive net cash balance of AED 5.2 billion.

Etisalat chairman Eissa al-Suwaidi said: "Building on the solid performance that the group witnessed during the first quarter of the year, we have seen a year-on-year increase of 20.5% in operating profit and 17% net profit. This is on the back of strong market development in Egypt, Benin, Gabon, Togo, Afghanistan and Sri Lanka..."

"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.

Ahmad Abdulkarim Julfar, group chief executive officer, Etisalat, said, "Over the past five years, the Etisalat Group has contributed approximately 5% to the UAE's GDP.."