Etisalat's Q2 net profit jumps 26% on Maroc stake deal

UAE telco beats analysts' forecasts as it makes net profit of $680m in the three months to June 30
Etisalat's Q2 net profit jumps 26% on Maroc stake deal
By Reuters
Sun 20 Jul 2014 07:38 PM

Etisalat reported a 26 percent jump in second-quarter profit on Sunday, beating analysts' estimates, as the UAE firm's acquisition of a majority stake in Maroc Telecom bolstered its bottom line.

The former telecom monopoly, which operates in 19 countries across the Middle East, Africa and Asia, made a net profit of AED2.5 billion ($680.7 million) in the three months to June 30, up from AED1.98 billion in the year-ago period, according to Reuters calculations.

Etisalat, which beat the AED2.19 billion average forecast of analysts polled by Reuters, did not provide a quarterly net profit breakdown in its results statement.

Net profit for the first six months of 2014 rose to AED4.5 billion, up 19 percent year-on-year, the statement said.

In May, Etisalat bought a 53 percent stake in Maroc Telecom , which also has operations in Gabon, Mauritania,Burkina Faso and Mali, for 4.14 billion euros.

The purchase helped boost consolidated revenue for the second quarter and its subscriber base at June 30 by 27 percent year-on-year, to AED12.6 billion and 182 million users respectively, the statement said.

Etisalat, the Gulf's No.2 telecom operator by market value, proposed a cash dividend for the first six months of 2014 of 0.35 dirhams per share. This matched the payout for the same period of last year, according to Thomson Reuters data.

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