Etisalat reports a 6% increase in net profit at Dhs2.4b - GulfToday

Etisalat reports a 6% increase in net profit at Dhs2.4b


Etisalat Group aggregate subscribers reached 149 million representing a year on year increase of 1%.

Etisalat Group on Wednesday announced its consolidated financial statement for the Q3 2020 ending 30th September 2020.

Etisalat Group’s consolidated revenue for the third quarter of 2020 amounted to Dhs13.0 billion, while consolidated net profit after Federal Royalty amounted to Dhs2.4 billion, representing an increase of 6% and resulting in a net profit margin of 18%.

Consolidated EBITDA amounted to Dhs 6.9 billion, representing an increase of 2% year over year and resulting in EBITDA margin of 53%.

In the UAE, the subscriber base reached to 12.1 million, while Etisalat Group aggregate subscribers reached 149 million representing a year on year increase of 1%.

Etisalat subscribers can now access 5G fixed networks for the first time from their homes in UAE.

Hatem Dowidar, Acting CEO, Etisalat Group & CEO, Etisalat International, said: “Etisalat’s performance in the third quarter exemplifies resilience in these uncertain times and is a testament to the vital role the network played in our customers’ lives, enabling businesses and the society to easily transition to the new normal.

“Thanks to the advanced capabilities of our infrastructure, Etisalat will continue to capture new growth opportunities while remaining focused on addressing the increasing customers’ needs during the pandemic. We have sustained our efforts in realising our vision of ‘Driving the digital future to empower societies’ through these challenging times. The availability and access to the super-fast speeds on 5G fixed networks from homes is a testament to our efforts taken towards this direction.

“Etisalat will move ahead in its journey of transformation on an accelerated path showing agility by future-proofing its business against challenges and capitalising on opportunities. We will remain focused on our long-term goals while creating incremental business value. As a company, we will continue to digitally transform our business, focusing on innovation in our existing assets by building new capabilities that are digitally enabled and sustainable.

“I would like to thank the UAE leadership for their vision and support during this period, inspiring us to pursue our digital ambitions and face the new reality to meet the distinctive needs and expectations of the communities we serve. Etisalat also extends its appreciation to its loyal customers, partners and shareholders for their continued confidence during this period.”

EITC posts strong growth:  Emirates Integrated Telecommunications Company PJSC (EITC) published on Wednesday its financial results for the third quarter of 2020. It reported (a) a strong 41.6% quarter-over-quarter growth in its quarterly Adjusted Net Income1 and 116.2% year-over-year growth in its quarterly Net Income as a result of the improvement of its operational performance and the capital gains derived from the sale of its stake in Khazna, (b) a recovery of its quarterly revenue growth with a 0.7% quarter-over-quarter growth, and (c) an important capital deployment of Dhs 511 million reflecting the implementation of its ambitious investment plans.

Q3 2020 revenues increased by 0.7% to Dhs 2.69 billion, compared to the previous quarter reflecting the first signs of recovery in the economic activity and the re-opening of tourism in the UAE.

Commenting on the results, Fahad Al Hassawi, Acting CEO of EITC said: “With the start of the recovery in the UAE market, we are pleased to see green shoots of recovery across our business too, for the first time since the onset of the pandemic. Compared to Q2 2020, characterised by lockdowns and severe disruptions in business activity, our Q3 2020 results show good improvement. Our quarterly revenues are up 0.7% quarter-over-quarter to Dhs 2.69 billion and our Quarterly Net Income is up 116.2%, year-over-year to Dhs 824 million.

Q3 2020 Mobile Revenues were up 2.0% reaching Dhs 1.33 billion compared to Dhs 1.31 billion in Q2 2020. This growth is the result of a combination of an increase in the mobile subscriber base by 2.8% to 6.59 million subscribers and an increase of the ARPU.

Q3 2020 Fixed Revenues, at Dhs 637 million, reflected a slight stabilisation when compared to the previous quarter.  Fixed subscriber base continued its gradual increase to reach 228 thousand at the end of Q3, driving fixed revenues for the first 9 months of 2020 up by almost 4% -when compared to the same period in 2019- to Dhs 1.92 billion. The performance of the fixed segment reflects a healthy increase in the subscriber base fuelled by the higher home connectivity needs in 2020.

Business Bureau, Gulf Today

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