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Etisalat announces annual financial results

‘2014 A Landmark Year Of Success’, as Annual Consolidated Revenues Increase by 26% to AED 48.8 billion .

Abu Dhabi, February26th2015: Etisalat announced today its consolidated financial statements for the 12 months ending December 31st 2014.

Financial Highlights and Key Operational Developments for 2014
– Aggregate subscriber base reached 169 million representing net addition of 21 million subscribers during the last 12 months
– Consolidated revenues amounted to AED 48.8 billion and increased year over year by 26%
– Consolidated EBITDA totalled AED 23.4 billion, resulting in EBITDA margin of 48%
– Consolidated net profit after Federal Royalty amounted to AED 8.9 billion and increased year over year by 26%
– Proposed final dividend pay-out of 70 fils per share for 2014, representing a dividend pay-out ratio of 62% and a dividend yield of 6%. In addition, the Board of Directors has proposed issuance of 10% bo-nus share
– Etisalat successfully completed the acquisition of 53% stake in Maroc Telecom
– Etisalat and Maroc Telecom signed Sale Purchase Agreement related to Etisalat’s shareholding in the operating companies under Atlantique Telecom in West Africa
– Credit Ratings Agencies S&P, Fitch and Moody’s affirmed Etisalat high credit Ratings at AA-/A+/Aa3 with stable outlook
– Ufone acquired 3G license and was the first operator to launch 3G services in Pakistan
– Etisalat UAE’s mobile network first in the region to upgrade to 700 Mbps 4G LTE tri-band carrier aggre-gation technology
– Etisalat showcases for the first time in the region, 5G mobile broadband services at Gitex Technology Week

Etisalat Chairman H.E. Eissa al-Suwaidi said: “2014 was an auspicious year for Etisalat, It is one where the company has experienced growth across the business, which has seen increased revenues and profits, as well as growth in the number of subscribers, but also seen our footprint grow internationally. This is a landmark moment in our history and a considerable achievement towards our objective of being recognised as the leading operator in emerging markets.

I want to thank the leadership of the UAE, who have always unwaveringly supported Etisalat. With the commitment of our world-class employees across 19 operations, the continued support of our investors, and the input and cooperation of our millions of subscribers, 2015 will no doubt continue this pattern of success.”

Ahmad Julfar, Group Chief Executive Officer, Etisalat, commented: “2014 was a milestone year for Etisalat. It was a year where we have taken the Group forward in terms of our objective to be recognised as the leading telecoms operator in emerging markets.

“Our expansion in Africa, which increased our international presence to 19 markets across the MENA region, was accompanied by strong figures in our international operations, the continuance of steady growth for our operations in the UAE, and an accelerated effort to spearhead the development of 5G technology through leading global partnerships.

“Our aim is to not only realise financial benefits, but to enact real, transformational change for the millions of customers we serve. We are building trust within these communities, which will allow us to be the most reliable partner in these markets when the time comes to deliver the next round of technological achievements. This long-term commitment is what underpins our current success, but strengthens our ability to prosper in the future.

“Our growth in these emerging markets will help to secure long-term success for Etisalat, but it is the rapid growth of data usage that holds the key to the future of our industry. New, transformative platforms such as M2M and mobile identities, as well as the digitisation of traditional forms of information transferare taking the industry to exciting new levels. In 2014 Etisalat was the first operator in the Middle East to offer Embedded SIM technology in line with a standard international specification.

“The future is full of challenges, but Etislalat is well placed to meet them. With the continued support of the UAE Government, our shareholders, and our customers, I have no doubt that we are up to the task of continuing the impressive track record of success that has been our hallmark.”

Etisalat Group aggregate subscribers as at the fourth quarter of 2014 was at 169 million reflecting a 14% increase year over year. In the UAE the active subscriber base grew to 11.0 million subscribers in the fourth quarter of 2014 representing a year on year growth of 6% and quarter over quarter growth of 2%.

Etisalat Group’s consolidated revenue for the fourth quarter of 2014 amounted to AED 13.0 billion with growth accelerating by 33% in comparison to the same period last year. Full year consolidated revenue increased by 26% to AED 48.8 billion driven by strong performance of domestic operations and the consolidation of Maroc Telecom operations. In the UAE, revenue in the fourth quarter grew year on year by 11% to AED 7.0 billion and 3% quarter over quarter. For the full year revenue increased 9% to AED 27.1 billion.

For the full year, EBITDA grew to AED 23.4 billion representing a year-over-year growth of 24% in 2014, while EBITDA margin declined 1 point to 48%. EBITDA growth was mainly due to consolidation of Maroc Telecom operations and continued strong growth in the domestic operations.

Consolidated net profit after Federal Royalty increased year over year by 47% to AED 2.1 billion in the fourth quarter of 2014 resulting in higher profit margin of 2 points to 16%. Full year net profit increased by 26% to AED 8.9 billion resulting in profit margin of 18%. Earnings per share (EPS) amounted to AED 0.27 in the fourth quarter of 2014 and AED 1.12 for the full year of 2014.