Etisalat posts $653m third-quarter profit as costs decline

Etisalat, the United Arab Emirates-based telecom group, reported a 29 per cent increase in third-quarter net profit as capital expenditure and staff costs declined.

Etisalat made a Dhs2.4bn ($653.4m) net profit compared with Dhs1.87bn a year earlier, a bourse statement said on Wednesday.

In an earlier statement, the company attributed the profit increase to lower depreciation and amortisation charges, high net finance income, lower losses from discontinued operations and foreign currency gains.

However, it also said revenue, which fell 2.6 per cent to Dhs12.8bn, was affected by unfavourable currency exchange rates, mainly in Egypt.

Etisalat, which operates across the Middle East, Africa and Asia, said it reduced capital expenditure by 12 per cent to Dhs1.6bn, and also said staff costs were down 7 per cent to Dhs1.2bn.

Royalties, or tax, paid to the UAE government increased 1 per cent to Dhs1.68bn and its direct cost of sales grew by 6 per cent to Dhs3bn.