Etisalat exceeds analyst forecasts with 280k Q1 growth in mobile subscriptions

Etisalat achieved a 37 per cent rise in net profit in the first quarter of 2007 higher than the 31 per cent profit announced at Q1 2006.

The net profits for 2007 reached AED 1.837 billion in the first three months of 2007 compared to AED 1.337 billion in the first three months in 2006.

Etisalat's total revenues reached AED 4.809 billion jumping 31% which is equivalent to 1.124 AED billion. Earning per share rose to AED 0.37 in the first quarter from AED 0.27 of the previous year's quarter. The company's net assets reached 8%, AED 23.181 billion by end of March 2007.

Mohamed Hassan Omran, Chairman Etisalat said: "The financial results for the first quarter of this year demonstrate the company's abilities and competitive strengths. We achieved financial results exceeding the analyst's expectations and continue to achieve high figures to coincide with our leading position offering telecommunication services in the region. This comes as a direct outcome of the company's strategy and commitment to provide the highest quality and most user-friendly services and telecommunication solutions to remain the UAE's fist choice for communications services."

Mr. Omran added, "Etisalat has achieved growth of 280 thousand mobile subscribers in the first quarter of 2007. Since the first quarter of 2006, there have been over 1 million additional mobile subscribers by end of March 2007, reaching 5.78 million subscriptions. This increase has resulted in a mobile service penetration of 135% with respect to the UAE population. At the end of March 2007, fixed line services reached 1.3 million lines and internet subscribers reaching 0.7 million line exceeding one million and a half internet user, and reflects 60% of the UAE population."

Mr. Omran stated that Etisalat, in the first quarter of 2007, established a company called 'Etisalat Software Solutions Privet Limited" in India.

The financial results achieved in the first quarter of 2007 reflect the large number of advanced services that Etisalat offers which meet the different sectors needs and to enhance its pioneer position as telecommunications operator in the region. Etisalat launched Mobile TV in February 2007 which is available for both GSM postpaid and Wasel prepaid customers. It allows mobile users with 3G enabled handsets to watch popular news, sport and entertainment channels live on their phones. Mobile TV service offers 14 different channels. 20,000 customers subscribed to this service within the first month of its launch.

Etisalat also offers BlackBerry® Pearl which is exclusively available at 15 Etisalat Business Centres located around the UAE. The BlackBerry® Internet Service (BIS) packages are available with Domestic Unlimited access and Global Unlimited access. BIS is available to all Etisalat GSM postpaid customers with a BlackBerry handset.

Etisalat also offers Location-based Services, which provide information in two innovative ways- 'Mobile Map' and 'Nearest'. Mobile Map enables the user to receive a map showing their current location, with the option of forwarding this map to other mobiles or emails. The Mobile Map service can be accessed via SMS, WAP, MMS and the web. Kallemni lets Etisalat mobile customers remind family and friends to call when outside the UAE. Wasel customers can send Kallemni requests free of charge from their mobile while roaming abroad to any Etisalat mobile in UAE. The request can be sent with any amount of available credit, including zero balance.

Etisalat also offers MMS and Voice mail services without any registration fees, and a special 'Global Friends & Family' package enables customers to call any three international numbers with a constant 20 per cent discount.

Etisalat constantly seeks to expand its operations internationally, and thereby increase stakeholder value. International investments of the company have seen development and have achieved excellent penetration rates on the strength of its services. The Corporation currently operates telecommunications services in 14 markets across the Middle East, Africa and Asia, and serves over 32 million customers.

Etisalat Misr (Egypt) expects to commence operations in Egypt in May 2007, and is in the process of rolling out the nation's third mobile network. The company also trialed 3G services in 2006, marking the first voice and video call over a 3G network between the UAE and Egypt.