Etisalat said yesterday its second-quarter net profit after royalty fell to Dh1.5 billion, as forex losses and troubles from other subsidiaries hit earnings.
Net profit tumbled 40 per cent from Dh2.5bn a year earlier, according to calculations. The company did not provide comparative figures.
The drop in second-quarter profit was owing to “higher depreciation and amortization charges, the impact of Mobily’s additional provision for accounts receivables, higher net finance costs and incurring forex losses during the period against forex gains in the same period last year”, Etisalat said.
Last month, Etisalat said it would take a hit of Dh616 million before federal royalty as accounting changes at Mobily, its Saudi unit, increased its losses for last year.
Mobily, the second-largest mobile operator in Saudi Arabia, has been under investigation by the Saudi Capital Market Authority since late last year because of alleged accounting irregularities that led to the company restating some of its earnings.
Etisalat owns a 27.5 per cent stake in Mobily.
Etisalat’s consolidated revenue was at Dh13.3bn for the second quarter, representing a 6 per cent increase year-on-year.
In the UAE, revenue for the second quarter grew by 9 per cent year on year to Dh7.5bn.
Etisalat operates in 19 countries across the Middle East, Africa and Asia, including Morocco, Egypt, Saudi Arabia and Nigeria.
In the UAE market, Etisalat's subscriber base was 11.3 million in the second quarter. On a group level, Etisalat's total subscriber base reached 168 million, according to the company.
Etisalat received government’s approval to allow foreign ownership for its shares, but the company has not yet disclosed when that will happen.
“Institutional and foreign ownership of Etisalat’s equity will have a positive impact both on Etisalat’s shareholders and Abu Dhabi Securities Exchange,” said Eissa Al Suwaidi, the chairman of Etisalat Group.
selgazzar@thenational.ae
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