Tuesday, 27 June 2017

Etisalat announces Q2 financial results

Etisalat
Wednesday 29 July 15

Etisalat Group today announced its consolidated financial statements for the three months ending 30th June 2015. Q2 Financial Highlights: ? Consolidated revenues for the second quarter amounted to AED 13.3 billion and increased year over year by 6%. ? Consolidated EBITDA for the second quarter totaled AED 6.8 billion, representing an increase of 17% year on year and resulting in EBITDA margin of 51%. ? Consolidated net profit after Federal Royalty reached AED 1.5 billion in the second quarter of 2015 impacted by share of results from associates and forex losses. ? The Board of Directors has approved an interim dividend distribution for the six months period ended 30 June 2015 at the rate of 40 fils per share representing an increase of 14 % year on year. Interim dividend distribution of 40 fils per share will commence from 18 August 2015 to those shareholders registered in the Shareholders&rsquo…

Etisalat Group today announced its consolidated financial statements for the three months ending 30th June 2015.

Q2 Financial Highlights:
? Consolidated revenues for the second quarter amounted to AED 13.3 billion and increased year over year by 6%.
? Consolidated EBITDA for the second quarter totaled AED 6.8 billion, representing an increase of 17% year on year and resulting in EBITDA margin of 51%.
? Consolidated net profit after Federal Royalty reached AED 1.5 billion in the second quarter of 2015 impacted by share of results from associates and forex losses.
? The Board of Directors has approved an interim dividend distribution for the six months period ended 30 June 2015 at the rate of 40 fils per share representing an increase of 14 % year on year. Interim dividend distribution of 40 fils per share will commence from 18 August 2015 to those shareholders registered in the Shareholders’ Register at the close of the business day on 9 August 2015.
? Aggregate subscriber base reached 168 million subscribers.

Q2 Key Developments:
? Etisalat and Millicom sign Share Purchase Agreement relating to Etisalat’s 85% shareholdings in Zanzibar Telecom Limited (Zantel).
? Credit Ratings Agencies Standards & Poor’s, Moodys and Fitch affirmed Etisalat high credit rating at AA-/Aa3/A+ with stable outlook.
? Etisalat successfully priced USD $400m of ‘tap notes’ issued under its USD $7bn Global Medium Term Note.
? Etisalat strengthens cooperation with international partners and collaborates on research on new technology, products and services.
? Maroc Telecom Group awarded 4G+ license and launched commercial services in Morocco.
? Etisalat Nigeria launches new data offering to encourage users to employ their mobile phones as a main source of Internet browsing.
? Etisalat Misr deploys Radio Dot System in Egypt for indoor coverage which is the first implementation of its kind in Egypt and is in response to the fast-growing demand for data traffic’ in the country.
? Etisalat UAE launches Mobile Cashier - the first-of-its-kind solution in the UAE - enabling business customers to accept credit, debit or prepaid card payments efficiently, and mange cash transactions through their mobile phones.
? Etisalat declared Operator of the Year at the 9th annual TMT Finance and Investment MENA.
? Etisalat named the ‘Top Telecommunications Company in the Arab World’ by Forbes Middle East.
? Etisalat’s Mobile Connect service wins the Global Telecoms Award for Business Innovation.

Chairman Message :

Eissa Al Suwaidi, Chairman – Etisalat Group, said: “Etisalat continues to strengthen its position as a leading operator in emerging markets despite the challenges in some of our operating markets. This is an indicator of the Company’s strong foundations and we remain committed to our long-term vision for continued success.

“I want to praise the decision of the Federal Government to allow institutional and foreign ownership of Etisalat’s equity as this will have a positive impact both on Etisalat’s shareholders and Abu Dhabi Stock Exchange and I want to thank the wise leadership for supporting the telecommunications sector.”

He added: “Etisalat is also fully behind the Government’s drive to establish the UAE as a leader in the telecommunications sector. The recent launch of a bit streaming agreement with du is indicative of an industry united in delivering the best for the nation within a healthy competitive environment.”
CEO’s Message:

Commenting on the financial results Ahmad Julfar, Group Chief Executive Officer, Etisalat commented: “Etisalat continues to deliver long-term value to its shareholders and customers across the markets it operates in. This value is being delivered through our ability to continually innovate; a key determinant to delivering what our shareholders and customers aspire to.”

He added: “This quarter’s 6% increase in revenue is an indicator that Etisalat’s long-term strategy for sustainable growth in our markets is the right approach, despite the decline in profit in Quarter 2, which is due to higher depreciation and amortization charges, the impact of Mobily’s additional provision for accounts receivables, higher net finance costs and incurring forex losses during the period against forex gains in the same period last year.”

He continued, “While the future is full of exciting potential, technological innovation in the telecommunication sector is key to realising that potential. In this quarter Etisalat has taken further steps forward in developing the next generation of mobile technology. Working closely with our global partners, Etisalat continues to explore and initiate the future networks and platforms, which are critical to enabling the Smart City solutions. Whether it is more efficient public services or streaming entertainment online, Etisalat is leading the way in developing platforms that will be critical to success. It is a dynamic future that is enabled by the telecom sector, and one that Etisalat is helping to shape.”

He concluded: “Robust financials combined with a drive for innovation is the foundation that has helped establish Etisalat as a leading and most admired telecommunication company in emerging markets. The continued success shown during 2015 bears testament to this approach and it is a strategy for success that Etisalat will continue to follow.”

Additional Information:

Revenue
Etisalat Group’s consolidated revenue for the second quarter of 2015 was AED 13.3 billion with growth of 6% in comparison to the same period last year.
In the UAE, revenue in the second quarter grew year on year by 9% to AED 7.5 billion and 4% quarter over quarter.
Maroc Telecom Group consolidated revenue for the second quarter of 2015 amounted to AED 3.1 billion. In local currency, revenue grew year over year by 17%

Subscribers
In the UAE, the active subscriber base grew to 11.3 million subscribers in the second quarter of 2015.
For Maroc Telecom Group the subscriber base was 50.8 million customers at the end of the second quarter of 2015, representing a year over year growth of 32%.
Nigeria continues to evidence strong subscriber growth with year over year growth of 18% to 23 million subscribers as at 30th June 2015. Quarter over quarter growth was 3%.

EBITDA
Group Consolidated EBITDA for the second quarter of 2015 increased by 17% to AED 6.8 billion while EBITDA margin increased 5 points to 51% year on year.
Compared to the first quarter of 2015 EBITDA increased by 4% with the EBITDA Margin increasing 1 point.

Net Profit
Consolidated net profit after Federal Royalty decreased to AED 1.5 billion in the second quarter of 2015.

The decline in net profit after Federal Royalty is attributed to higher depreciation and amortization charges, the impact of Mobily’s additional provision for accounts receivables, higher net finance costs, incurring forex losses during the period against forex gains in the same period last year, and higher Federal Royalty charges.


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