UAE's Etisalat Q4 profit up 17%, takes $769m hit

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Etisalat, the United Arab Emirate’s largest telecom operator, has recorded an increased net profit of US$232.6m during the 2012 fourth-quarter after writing down the value of businesses in Pakistan and Sudan by a total of US$769m.

Fourth-quarter profits rose 17 percent from US$191.6 during the same period in 2011, when the company wrote down US$827m in its Indian operation.

Across the year, the government-owned company posted a US$1.82bn profit, up 15 percent.

Revenue across the Etisalat Group, which has operations in 15 countries in the Middle East, Africa and Asia, grew 2 percent to US$8.9bn in 2012.

UAE revenues declined 1 percent to US$6.2bn, which the company attributed to fewer voice calls, partially offset by an increase in internet and data usage.

Earnings from international operations grew by 11 percent to US$2.5bn during 2012, and now make up 29 percent of the group’s total consolidated revenues.

However, the company wrote down losses worth US$644m in its Pakistani investment, Pakistan Telecommunication Co Ltd (PTCL), the company’s third largest segment, and US$459m in Sudan fixed-lined operator Canar.

“Impairment losses were primarily driven by increased discount rates as a result of increases in inflation in the operating countries and challenging economic and political conditions, as well as by the downtrend in real estate prices combined with the negative local currency fluctuation,” the Abu Dhabi-based company said in its annual report.

The company had diversified its investments, focusing on high growth or high population markets, following declining profits in eight out of nine quarters up to the first quarter of 2012 on the back of UAE rival du entering the market in 2007.

Related:

Market Performance

Emirates Telecommunications Corporation
11.5
0.05 0.44 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
UAE's role in the new space race

UAE's role in the new space race

In the last five years, the UAE has invested heavily in a bid...

An Instagram photo is worth a thousand words

An Instagram photo is worth a thousand words

Instagram has become the social media platform of choice for...

1
Fear and roaming in the Gulf

Fear and roaming in the Gulf

The Gulf’s telecommunications giants are once more pushing ahead...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams