Huawei has announced its unaudited financial and operational results for the first half of 2013 with the company generating revenues of US$18.54 billion, an increase of 10.8 per cent over the same period in 2012. Based on this growth and other positive business indicators, Huawei expects to generate a net profit of 7-8 per cent in 2013.

"Our success in H113 was mainly driven by the steady growth of the Carrier Network business, the expansion of the Enterprise business, and the fast growth of the Consumer business, as well as the continuous enhancement of our overall operational efficiency. Revenues and profit are in line with our expectations," said Cathy Meng, chief financial officer at Huawei.

Much of Huawei’s gains have been due to business opportunities generated by a series of highly innovative new product and solution launches, including many industry firsts, and a result of strategic expansions in key growth markets including the Middle East, Europe, and Australia.

Earlier this year Huawei confirmed that its Middle East business generated healthy revenues totalling over US$2 billion in 2012, up approximately 18 per cent from the previous year’s revenues with all of Huawei’s business groups seeing a positive increase in revenues. Today Huawei Middle East has offices across 10 countries with over 3,800 employees—of whom over 64 per cent are local hires.

Etisalat Group reported strong consolidated revenues during the second quarter of 2013, reaching AED9.88 billion (US$2.7 billion) representing an increase of 20 per cent year-on-year and an increase of three per cent quarter-on-quarter. During the quarter, group consolidated revenues were affected by the changing in the accounting treatment of the operations in Pakistan, which were consolidated with effect from January 1, 2013.

In the UAE, revenues of AED6.3 billion for the quarter were 12 per cent higher than in Q212 and five per cent higher sequentially. The year-over-year growth in revenues was primarily due to customer acquisition, an increase in data revenues, and handsets sales.

Revenue from international consolidated operations grew by 50% to AED 3,513 million, representing 36% of consolidated revenues.

Etisalat Group’s first six months 2013 revenue increased to AED19.5 billion in comparison to AED16.5 billion for H112.

The number of Etisalat Group’s aggregate subscribers grew to 143 million by end of June 2013, representing growth of 14 per cent compared year-on-year. The Group reported strong net additions of 18 million subscribers as a result of growth across all of its operations.

Consolidated net profit post Federal Royalty increased year-over-year by six per cent to AED1.98 billion, which was achieved through higher EBITDA and higher share of profit from associates.

Earnings per share (EPS) reached AED0.25 representing an increase of six per cent as compared to last year.

Etisalat announced today that Vivendi has formally granted Etisalat a period of exclusivity for the acquisition of Vivendi’s 53 per cent stake in Itissalat Al Maghrib (Maroc Telecom) until September 25 2013.

Etisalat’s binding offer values each Maroc Telecom share at MAD 92.6 (US$11), amounting to a consideration for Vivendi’s 53 per cent stake in Maroc Telecom of €3.9 billion. The closing share price of Maroc Telecom (Exchange Ticker: IAM) was MAD 99.55 per share at the Casablanca Stock Exchange on July 22, 2013.

The above consideration does not include the dividend received by Vivendi from Maroc Telecom in respect of the 2012 financial year, equivalent to MAD 7.40 per share, which will also be for the benefit of Etisalat. At closing, Etisalat will pay Vivendi the cash value of such 2012 dividend of €300 million.

Vivendi’s response to Etisalat’s binding offer will follow consultation with its Works Councils. If Vivendi accepts the offer, the transaction remains subject to a number of conditions including, among others, the execution of a shareholders’ agreement with the Kingdom of Morocco and securing competition and regulatory approvals in the Kingdom of Morocco and certain other jurisdictions in Maroc Telecom’s footprint.

Moroccan capital markets regulations will require Etisalat to make a mandatory tender offer to the remaining shareholders in Maroc Telecom, which may result in Etisalat further increasing its shareholding. The outstanding free float represents approximately 17 per cent of total number of shares.

Etisalat is planning to finance the transaction through external borrowings and has already secured a commitment to provide the requisite funds from a syndicate of local and international banks.

Etisalat’s Extraordinary General Assembly Meeting that was held on May 28, 2013 approved the board’s recommendation to raise external funding in excess of the corporation’s capital.

Saudi Telecom Company (STC) has confirmed that it has entered into negotiations to sell its subsidiary in Indonesia Axis Telekom after failing to generate the returns it had expected from the company.

STC owns 80.1 per cent shareholding directly and 3.725 per cent indirectly in Axis.

STC first invested in Axis in 2007 and again in 2011, with these investments STC envisaged that an exposure to fast growing emerging markets and under penetrated markets would provide a platform for future growth.

Since the acquisition of Axis, STC says that it provided significant operational and financial support to the operator and was actively involved in developing the business by supporting the Axis management with initiatives, which leveraged STC Group’s presence in multiple markets and implemented both revenue enhancing and cost reduction programmes.

STC said however, that the financial performance of the company has been poor and it has not been able to deliver growth as expected due to intense competition in Indonesia, a market with more than 10 mobile operators (five GSM, five CDMA and one WiMAX).

Last month, STC recognised a realized loss of SAR 705 million (US$188 million) on the investment.

Saudi Telecom Company (STC) today announced the company’s preliminary financial results for the period ending June 30, 2013 (6 months)

Net profit for H113 amounted to SAR 2.98 billion (US$795 million) down 40 per cent year-on-year. For Q213 net profit was down 41 per cent year-on-year to SAR 1.43 billion, and down eight per cent quarter-on-quarter. STC attributed the decrease in net profit for H113 to the booking of a one-time, non-recurring and non-cash charge of SAR1.1 billion resulting from fair valuation of its investments in Asia (Aircel and Axis) and unrealised foreign exchange losses of SAR601 million due to the sharp depreciation of Turkish lira , Indian rupee and Indonesian rupiah. Impacting the results was also the disposal of fixed assets with a net book value of SAR 277 million during Q1.

Other key performance indicators included:

· Revenues for H113 reached SAR22.08 billion, an increase of four per cent year-on-year

· Gross profit for H113 increased four per cent year-on-year to SAR 13.23 billion

· EBITDA for H113 amounted to SAR 7.94 billion, down six per cent year-on-year

· Wireless broadband revenue during Q213 grew 29 per cent year-on-year

· Mobile broadband customers during the quarter increased 40 per cent

· Fixed broadband customers during the quarter increased 11 per cent

Revenues from domestic operations during H113 increased five per cent as a result of the growth in business sector and broadband (fixed & wireless) services revenues. H113 also experienced revenue growth of 22 per cent in the controlled subsidiaries year-on-year, which led to the overall increase of four per cent in STC Group consolidated revenue for the period.

STC stated that currently management is evaluating options for some of its international investments in order to take appropriate actions in the best interest of shareholders.

With regards to international operations, STC Group continues to grow the operations of subsidiaries and affiliate companies, with the operator’s overall subscriber base having exceeded 175 million as of Q213. During the quarter the group witnessed revenue growth of 22 per cent in the controlled subsidiaries, though operating profit and net profit were impacted negatively by the following:

· The operational performance of Axis, Indonesia and Binariang Group (mainly due to Aircel) continued to drag the financial results of the group

· The unrealised foreign currency exchange losses during H113 amounting to SAR601 million related to Oger Telecom and Axis resulting from the significant depreciation in the Turkish & Indonesian rupiah against US dollar during the period

· Booking of one-time, non-recurring and non-cash charge of SAR 1.1 billion losses from fair valuation of investments in Asia (Aircel and Axis)