UAE’s Etisalat posts 5% increase in Q1 net profit

Abu Dhabi-listed Emirates Telecommunications Group Co. (Etisalat) reported a net profit of AED 2.1 billion for Q1 2017, up 5 percent year-on-year (YoY) due to lower depreciation and amortization, lower forex losses, and a decline in royalty charges.

These factors, however, were partially offset by a higher share of losses from associates and higher net finance costs.

Meanwhile, revenues dipped 3 percent YoY to AED 12.5 billion, impacted by unfavorable exchange rate movements, mainly in Egypt.

Etisalat’s aggregate subscriber base reached 159 million, reflecting a net loss of 4.9 million subscribers (a 3 percent YoY decline), attributed to subscriber disconnection following regulatory mandated registration in various markets.

In the United Arab Emirates however, the active subscriber base grew to 12.5 million in Q1, rising 4 percent YoY.

Etisalat shareholders approved the distribution of a cash dividend of AED 0.8 per share for fiscal year 2016 at the telecom firm’s general assembly earlier this month.