Etisalat reports marginal revenue growth in Q3, with profitability remaining under pressure

Etisalat reported a nine per cent rise in its third-quarter revenues to reach AED8.04 billion (US$2.2 billion), compared to AED 7.4 billion a year ago.

However, profits for the quarter were down very slightly at AED 1.72 billion compared to AED 1.74 billion a year ago.

Thus, a clear area of concern for Etisalat, as with most regional operators, is the downward pressure being exerted on profitability given the rise in market competition and the flattening of average revenues. For the first half of 2011, Etisalat reported a net profit after federal royalty of AED3.41 billion, which was down from a net profit of AED3.9 billion in 2010. This amount stood at AED4.6 billion in 2009, meaning net profit at Etisalat dropped by over a quarter in the two years to end-June 2011.

For the nine months to end-September 2011, revenue earned from international operations contributed 26 per cent to overall revenue, and increased 18 per cent on the same period last year.