Etisalat on Wednesday reported a fall in third quarter revenue and net profit, largely driven by foreign exchange losses.
In the three months to 30 September, the U.A.E-based telco generated revenue of 13 billion dirhams (€3.2 billion), down 1% year-on-year. EBITDA fell 5% on-year to AED6.7 billion due to higher regulatory charges and interconnection costs.
Etisalat said third-quarter net profit fell 9% to AED1.9 billion, which it attributed to higher depreciation and amortisation charges, a higher federal royalty payment, and higher forex losses compared to the third quarter of 2014.
"Through careful investment and the leveraging of decades of experience and expertise, Etisalat Group is well-placed to deliver the advanced and innovative solutions that will be the key to generating future growth and profitability," said Ahmad Julfar, CEO of Etisalat, in a statement.
The telco reported strong subscriber growth across the board, particularly at its Maroc Telecom unit, where the customer base grew 29% year-on-year to 50.7 million, and in Nigeria, which ended the quarter with 23 million subscribe rs, up 18% on last year. In the U.A.E., the Etisalat’s customer base totalled 11.6 million, up 7% year-on-year.
"Etisalat Group continues to capitalise on the opportunities we see for growth, but there are also clear challenges ahead for the telecommunications sector. Consumer behaviours and new technologies – and uses for those technologies – are rapidly changing the telecommunications industry," Julfar said. "Etisalat Group’s concerted focus is to lead that change. The future will be bright for those who adept and invest today in what consumers will demand tomorrow."
