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Sun 31 Jan 2010 06:06 PM

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Etisalat posts $2.4bn net profit for 2009

UAE telco says revenues up by 5% to more than AED30bn, mobile subscribers rise to 7.74m.

Etisalat on Sunday announced net profits of AED8.8bn ($2.4bn) for 2009, compared to AED8.5bn recorded the previous year.

In a statement, the company said it achieved revenues of AED30.8bn, an increase of five percent on 2008.

Total assets for the group increased by 13 percent to AED40.4bn compared to AED35.6bn in 2008, it added.

Mohammed Omran, chairman of Etisalat, said: "Etisalat has enjoyed another successful year in 2009. This is in spite of the difficult economic circumstances which the world's economy continues to face.

"These results highlight that Etisalat has followed the correct strategy by following a selective policy in our international investments."

He added that Etisalat had continued its strategy of developing new sources of income and had also been successful in reducing operational expenditure.

Mohammed Khalfan Al Qamzi, CEO, added that the number of mobile users in the UAE exceeded 7.74m in 2009, with an increase of 6 percent against the same period in 2008.

Fixed line subscribers reached 1.31m and Etisalat's internet subscriber base grew 16 percent over the year reaching 1.33m million in December 2009.

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Jebel Ali Baba 10 years ago

I think, I am an average Etisakat customer. I have a land line, an internet broadband connection and two mobiles registered with Etisalat. An I pay them an average of about 800Dhs per month, equals about 10,000Dhs per year. With an amount of 1.3 million customers for mobile and for land lines as well, Etisalat would make 13 billion Dhs per year with customers like me. But the claim to make 9 billion PROFIT respective 40 billion turnover. These figures do not fit together. I really hate monopolies...

Marcello 10 years ago

@Jebel Ali Baba - Don't forget corporate users, many sales offices cover MENA from Dubai - you should see our mobile phone bill monthly as most of our office guy roam in the region. In some countries we get charged over 15Dhs a minute to call back UAE! That's were Etisalat is making tons of money. Roaming charges are a rip off! TRA should do something to cap roaming costs. Please TRA introduce more competition and MVNO!

worried 10 years ago

Did the recession not affect Etisalt in any way? WOW

Nizam 10 years ago

It is due to just MONOPOLY

dubai resident 10 years ago

ETC operates in number of countries such as India, Pakistan, africa and UAE thus the revenue and profits. The trend for most telco is consistent. I haven't hard of telco effected by recession. Of course some companies are straggling but that is not because of the financial crisis but rather their business model.

Jebel Ali Baba 10 years ago

I do understand that corporations and its users make much higher bills with Etisalat. But do not forget the thousands small customers with 50 or 100AED bill per month only. So I think accumulating the average will give a close result. And I know, Etisalat has international activities but the number of customers published in this article is 1.3 million for each mobile and fixed line subscribers.

Naive 10 years ago

Well,this kind of profit could only be made due to monopoly not because of right policy, considering no.of users

Etisalgood 10 years ago

These fabulous results once again emphasize that Etisalat is synonymous with quality, customer service and affordability. Those who don't like it can pack their bags and switch to a different provider. Oh, wait..

Telco guy 10 years ago

You have not heard of any telco affected by recession? Really? While this may be true (the part that says "I have not heard") the rest it clearly not. Published in this same website a few weeks ago was a drop of more than one third in Zain's profitability. Many other firms have seen similar hits and not only in this region. I suggest you dig a little bit more before making these comments, specially if you are planning on investing. I would also advise you to try to get de-aggregated numbers that show revenue and profitability per operation (good luck with those) to understand where the bulk of profits for the GCC groups come from, and that you take a look at the cash position and short term obligations. Regards

Dan 10 years ago

Let me give you a comparison regarding service verses cost. In Sweden (a high cost country) if you set up a new small business you can get Internet connection 10 Mbit, one land line and one mobile line for 150 Dirham in one week from ordering, first 2 months for free, monthly cost 300 Dirham. This is part of a world class infrastructure which creates great opportunities for individuals, companies and the whole country to grow. This is one of the reasons you see a small country like Sweden is one of the leading players in IT and telecom (Ericsson). The Swedish telecom market was opened for competition more than 25 years ago. It’s not the fancy airports, highways or buildings that make a country to progress. It’s the rules and regulations that are put forward by the chosen leaders and than are enforced by the proper government offices. No government company is allowed to exist if it can not provide the people with adequate service by a reasonable cost.