UAE telecom operator Etisalat Q2 profit rises 51%

Profit rose on foreign exchange gains and lower finance costs and royalties

Abu Dhabi-listed Etisalat reported a 51 per cent rise in second-quarter net profit on Wednesday on the back of foreign exchange gains and lower finance costs and royalties.

Etisalat, which directly and indirectly operates in about 18 countries across the Middle East, Africa and Asia, made a net profit of Dhs 2.32bn ($631.7m) in the three months to June 30, it said in a statement. This compares with a profit of Dhs 1.53bn a year earlier.

SICO Bahrain forecast Etisalat would make a quarterly profit of Dhs 1.92bn.

The company’s board proposed an interim dividend of 40 fils per share for the first half, according to the statement.

Etisalat generated second-quarter revenue of Dhs 13.33bn, up from Dhs 12.72bn a year earlier.

Domestic revenue rose 3 per cent to Dhs 7.7bn due to increased customer base, while international revenue fell 1 per cent year on year to Dhs 5.5bn because of currency volatility in Egypt and Pakistan.

Etisalat had 163 million subscribers as of June 30, up 0.7 per cent from the same point a year earlier.

The firm agreed in June to sell its 92.3 per cent holding in Sudanese fixed line operator Canary for Dhs 349.6m to Sudan’s Bank of Khartoum, subject to conditions including the approval of Sudanese authorities.