Dubai: Abu Dhabi-based telecoms operator etisalat said it posted a seven per cent increase in first-half profit from the UAE to Dh4.2 billion.

Etisalat’s revenues from the UAE amounted to Dh15.4 billion, representing a three per cent increase year over year.

The Group’s consolidated operating profit before Federal Royalty amounted to Dh8.8 billion and revenues amounted to Dh25.3 billion.

The operator’s group aggregate subscriber base reached 139 million in the first half while subscriber base in the UAE reached 12.4 million, up 2 per cent from a year earlier.

“Etisalat group’s geographic footprint expands across the Middle East, Africa and Asia witnessing various opportunities and challenges in each market that are governed by specific economic conditions. Some of these markets witnessed macroeconomic challenges that imposed limitations on investments and future growth. Etisalat responded with confidence overcoming these challenges while maintaining a sustainable business portfolio,” Saleh Al Abdooli, CEO of etisalat Group, said in the statement.

Attracting investors

Etisalat, which had a 45 per cent stake in the Nigerian business, terminated a management agreement with its Nigerian arm and phased out the etisalat brand in Nigeria to 9mobile.

9mobile has appointed advisers to manage the process of attracting investors to take over the telecoms company.

Sukhdev Singh, vice-president at market research and analysis services provider AMRB, said that despite difficult economic climate in the UAE, etisalat has grown its bottom line more strongly as compared to the top line.

“Given the technology leadership Etisalat maintains in the telecom space, one expects Etisalat to launch new data enabled services in the consumer as well as enterprise space,” he said.

Moreover, he said that etisalat’s refocus on its consumer loyalty seems to pay off — the loyalty programmes appear to be clearer and have a wider consumer reach now as compared to earlier programme. Even the consumer base for etisalat in UAE has seen a significant growth of two per cent.

Revenues

The operator registered a six per cent year-on-year increase in the second-quarter UAE profit to Dh2.2 billion.

The operator said that its UAE revenues amounted to Dh7.8 billion representing a three per cent increase compared to the first quarter of this year.

The operator announced a distribution of an interim dividend of 40 fils per share for the first half.

Al Abdooli said that the Group’s financial performance in the first half reaffirms its strong position and demonstrates its flexible strategy in adapting to the developments and changes in the telecom sector. “Etisalat Group has established a competitive position in the region as a fully integrated ICT solutions and services provider. Our recent announcement of the longest submarine cable system is another step to enhance our long-term growth and bring new capacity to UAE making it an international hub,” he added.