Etisalat Board announces 25 per cent dividend to shareholders and 25 per cent increase in gross profit

The meeting was held in the Etisalat Headquarters in Abu Dhabi under the Chairmanship of Mohammad Hassan Omran, Chairman and CEO, Etisalat.

The Board thanked HH Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE, and all other leaders of the nation for their guidance and support to Etisalat, which has encouraged them to perform well and achieve good results in connecting the UAE with modern and innovative telecommunications solutions.

The Board passed a resolution to pay a 25% dividend to shareholders for the second half of 2005, at AED 0.25 per share. This is in addition to the dividend of AED 0.25 per share announced at the end of the first half of 2005. The total dividend for shareholders in 2005 is therefore AED 0.50 per share.

A recommendation was made by the Board to increase the authorised capital of the Corporation from AED 4 billion to AED 8 billion. An issue of 907,500,000 shares at AED 1 each as bonus shares to shareholders in the ratio one share for every four held, or 25% of total holding, was also recommended.

A new private company is to be established under 'e-marine'- a wholly-owned Etisalat subsidiary. Amendments have also been recommended concerning the basic structure of the Corporation, and full details of these will be announced as soon as they have been approved at the plenary session

The Board also announced that the Corporation has earned total revenue of AED 12.9 billion and gross profits of AED 8.5 billion, before payment of 50 per cent of gross profit as royalty to the UAE Federal Government. The 2005 figures indicate an increase in total revenue and gross profits of 23 and 25 per cent respectively.

During the year the assets of the Corporation increased to a total of AED 24.1 billion, up by AED 3.7 billion or 18% from the previous year. Earnings per share also increased from AED 0.94 in 2004 to AED 1.17 in 2005.

The year witnessed commendable growth in all major areas. Mobile connections reached 4.5 million lines, a 23% increase over 2004. This service has remained the main contributor to revenue, with a share of 58% during the year. The UAE can now boast of nearly 100 per cent penetration - this is comparable to the most advanced countries in the world. Fixed lines also saw a marginal growth of 4% to reach 1.2 million installed lines. Total Internet connections, including high-speed internet access, crossed the half million mark during the year.

Every year, Etisalat contributes 50% of its profits as royalty payment to the Government for services rendered. Etisalat's contribution to the national exchequer by way of royalty this year stands at AED 4.256 billion, and the beneficiaries include the UAE Marriage Fund and the Sheikh Zayed Housing Programme, among others.

Etisalat has contributed AED 28.28 billion to the exchequer since its inception. This is in addition to the dividend of 50% of the face value of the shares declared during the last 15 years, and the Bonus Shares issued by the Corporation on several occasions.