Etisalat Group’s third-quarter net profit remains steady at AED 2.3b
Etisalat Group’s third-quarter net profit after royalty remained steady at AED 2.3b when compared to a year ago despite tough market conditions.
The Abu Dhabi-listed telecom operator’s group revenue fell 1.51% to AED 13b when compared to AED 13.2b a year ago.
The pre-paid mobile market is under pressure for the last few quarters due to weak consumer confidence and telecom operators have been focusing on post-paid mobile market to increase the average revenue per user and keep their revenues and profits from decreasing.
According to research firm International Data Corporation, telecom services are feeling the impact of weak consumer confidence and a slowdown in mobile data services.
Even in 2020, the spending in the telecom sector is expected to grow the slowest at 1.01%.
Sukhdev Singh, executive director at research and consulting services provider Kantar, told TechRadar Middle East, that most businesses in the UAE are facing headwinds for the last two to three years, impacting the overall economy in many ways, including the usage of telecom services.
However, he said that Etisalat has managed to broadly retain its bottom-line despite shrinking revenues. “As we get closer to the Expo 2020, which kicks off in the fourth quarter of 2020, economic activities are expected to pick up and help telcos ahead of other sectors,” he said.
Nine-month profit up 2.1%
However, the operator’s nine-month profit amounted to AED 6.7b, an increase of 2.1% compared to the same period last year while its revenues reached AED 38.8b, a decrease of 1.52% to AED 39.4b.
In the UAE, the subscriber base reached to 12.4 million subscribers, while the group’s aggregate subscribers reached 148 million subscribers representing a year on year increase of 5%.
Consolidated EBITDA totalled AED 6.8b, representing an increase of 3% year over year and resulting in earnings before interest, tax, depreciation and amortisation (EBITDA), a measure of a company’s operating performance, a margin of 52%.
Etisalat, which operates in 16 markets across the Middle East, Africa and…