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UAE operator Etisalat reports Dhs9bn net profit in 2020; up 3.8% y-on-y

UAE operator Etisalat reports Dhs9bn net profit in 2020; up 3.8% y-on-y

Its consolidated revenues reached Dhs51.7bn, a 0.9 per cent decrease over the previous year

Etisalat

UAE telecom operator, Etisalat Group, has said that its net profit for 12 months ending December 31, 2020, after federal royalty, amounted to Dhs9bn, up 3.8 per cent year-on-year.

Consolidated EBITDA was recorded at Dhs26.4bn, representing a year on year increase of 0.3 per cent and resulting in an EBITDA margin of 51.1 per cent. Meanwhile, its consolidated revenues for 2020, reached Dhs51.7bn, a 0.9 per cent decrease over the previous year.

In the UAE, its subscriber base reached 12.2 million, while the group’s aggregate subscribers reached 154 million representing a year-on-year increase of 3.6 per cent, noted news agency WAM.

The group’s board of directors proposed a dividend payout of 40 fils per share for the second half of 2020, representing a total dividend payout of 80 fils for the full year. The board also proposed cancellation of the share buyback programme and instead proposed a one-time special dividend of Dhs0.40 per share. As a result, the total ‎dividend per share for the full year 2020 is Dhs1.20.

Credit Ratings by agencies S&P Global and Moodys affirmed Etisalat Group’s credit rating at AA-/Aa3 with stable outlook. The telecom company completed the acquisition of Help AG, a privately held regional company specialising in the delivery of cyber security solutions and services.

Obaid Humaid Al Tayer, chairman of Etisalat Group, said: “Despite the unprecedented global impact of the Covid-19 pandemic, Etisalat demonstrated robust financial performance, driven by our bold vision to constantly innovate while ensuring that communities we serve remain connected, informed and productive.

“We engaged heavily with governments and authorities while supporting the community with innovative offerings and free initiatives that assisted students, organisations, and societies as a whole. During the year, revenue and net profit growth were witnessed in our international markets while the domestic market experienced a decline in both due to the pandemic and market maturity.”

Read: UAE operators Etisalat, du raise foreign ownership to 49%

In January, Etisalat increased the foreign ownership cap from 20 per cent to 49 per cent. Etisalat first opened up to foreign ownership in 2015 with a 20 per cent limit. At the time of notifying the Abu Dhabi Securities Exchange of the increase in its foreign ownership cap, foreigners owned only 4.8 per cent of Etisalat’s shares.

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