Etisalat announces net profits of AED 3.732 bn in H1 2007 with 33 per cent growth

The corporation has seen growth of 33 percent compared to first half 2006, recording net profits of AED 3.732 billion.

The Board of Directors of Etisalat has declared an interim dividend at the rate of 25 percent on the par value of each share. Distribution of dividends will commence from 26th July 2007, and will be paid to all shareholders registered in the Shareholders Register at the close of business on 19th July 2007.

Etisalat's consolidated profit for the period was recorded at AED 10 billion, showing an increase of AED 2.3 billion, approximately 30%, over 2006 figures. Earnings Per Share rose to AED 0.75 in the first half of this year from AED 0.56 in first half 2006. Net assets increased in value by 18% in the period, reaching AED 25.2 billion by end of June 2007. Capital expenditure for Etisalat Group reached AED 1.4 billion during this period.

Mohammad Hassan Omran, Chairman of Etisalat, said: "The financial results for the first half of this year demonstrate the company's diverse capabilities and competitive strengths. We achieved financial results exceeding expectations and continue to achieve strong results supporting our continued leadership in the region's telecommunications industry. This is a direct outcome of the company's strategy and commitment to providing the highest quality and most user-friendly services and telecommunication solutions, which help Etisalat maintain its position as the UAE's operator of choice."

Mr. Omran added "Since the end of June 2006, we have grown the market for mobile services and recruited over 1 million additional mobile subscribers, taking the total to 5.99 million mobile subscribers. Penetration of Etisalat's mobile service in the UAE now stands at 142%. At the end of June 2007, fixed line services reached 1.31 million lines and Internet subscribers reached 800 thousand lines. The 2.5 million Internet users in the UAE represent a penetration rate of 60%."

Mohammed Al Qamzi, CEO, Etisalat, said: "We are extremely proud of the results that we have achieved, and it is testament to our success both locally and internationally. We are happy to reward the trust placed in us by our shareholders with the dividends, and we look forward to forging deeper relationships with each of our stakeholders."

Mr. Al Qamzi added: "In the last six months we have launched many services including Etisalat Pushmail and international calling plans, all designed to offer our customers choice and improve their lives. Blackberry subscribers also increased to 15,000, enabling the UAE's executives to remain productive on the move. With the greatest quality network coverage in the country and 444 international roaming partners in 180 countries, our customers can stay connected across the globe. The second half of the year will see even more services aimed at enhancing the productivity and lifestyle of people in the UAE."

Pricing plans introduced this year include:
-Favourite Country Plan - discounts of 25% for postpaid customers and 20% for Wasel customers on all international calls to a favourite destination
-Global Friends & Family - 20% discount on all calls to three selected numbers anywhere in the world, for a monthly fee of AED 20
-Package for Special Needs - discounts on services used by our special needs customers. Discounted packages for centres catering for people with special needs

New services launched this year include:
-Auto Pay and Mobile Payment - easy ways to pay Etisalat bills, including mobile (GSM and prepaid), fixed-line, Internet (Al Shamil and Dial-up) and television (E-Vision).
-Mobile TV - 14 television channels for pre and postpaid customers with 3/3.5G enabled handsets
-3G MobileCam - anytime, anywhere access to live streaming video from the cameras location, wherever there is 3G coverage
-Etisalat Pushmail - allows customers to access their email from their mobile phone in the UAE or in any of the countries supported by our 444 international roaming partners
-Advanced Greetune - allowing our customers to enhance their mobile experience, with scheduling, shuffling and gifting of ring back tones.

Etisalat has also achieved many accomplishments internationally in the first half of this year with the launch of Etisalat Misr in May 2007. Since launch, Etisalat Misr has signed on over 1 million customers. Etisalat has also acquired an additional 20% stake of Atlantique Telecom, taking its total holding in the company to 70%.