Greater reporting transparency on the way

Ever looked over Etisalat’s financial results and wanted to know the operating results for a specific market the telco operates in outside of the UAE and found that they were not available? It is understood that this may become a thing of the past as the Abu Dhabi Financial Market on which Etisalat is listed is set to require the telco to report its operational results on a market-by-market basis.

Currently Etisalat reports its operational results for activities within the UAE and then combines the results from its international operations into a consolidated result, which is not broken down by market. As such it is difficult for investors and interested parties to complete a forensic analysis of the telco’s operational performance, which is an important element in assessing whether certain investments have been value creating or not.

Given the number of high profile markets Etisalat has entered into in the last few years, including Saudi Arabia and Egypt, financial details showcasing the performance of such investments is important in order to calculate factors such as breakeven periods and viability. Multi-national competitors such as Zain already detail their financial results on an operational basis, helping analysts gain a greater insight and understanding of the provider’s true financial and operational standing.