The Abu Dhabi-based Etisalat said that its annual operating profits fell to $3 billion as against $3.3 billion in 2017, in its report.
Is it struggling this year?
The company, which operates in countries across the Middle East, Africa and Asia, attributed the decline in revenues to the impact of unfavorable exchange rate movements in Egyptian pound against the UAE dirham.
It made a 12-month net profit of $1.84 billion, up from $1.6 billion in 2016, according to their statement.
Etisalat Group said that net profit of the first-quarter of 2018 totaled $570 million after paying the federal royalty.
Revenues rose 5%, which is just under $3.6 billion, while its subscriber base reached 144 million, up 3% from the year-earlier period.
In the UAE, its home market, the subscriber base grew to 12.9 million subscribers in the first quarter of 2018.
Saleh Al Abdooli, Etisalat Group’s CEO, said: “Etisalat’s first quarter results are a continuation of previous quarters’ reliable performance, and a promising start for the current year, alluding real prospects for both customers and shareholders.
He added: “Adoption of cutting-edge technologies is a strategic imperative that will always be a cornerstone of Etisalat agenda, and while we operate in multiple markets with varying levels of technological maturity, our home market remains a driving force.”
Du is catching up
Du, the UAE’s no.2 telecom operator, reported a 14.9% rise in the fourth-quarter net profit, boosted by a rise in revenue, improvement in gross margin and cost savings.
The company made a net profit after royalty of $115.7 million in the three months to December 31st, 2017, up from $86 million in the year-earlier period, according to Reuters.
Du fell short to reach SICO Bahrain’s forecast for a quarterly profit of $117 million.
The company said that its board of directors had proposed a total annual dividend payment of $0.35 per share, up from $0.09 per share for the previous year. It had already awarded an interim dividend of $0.04 per share in October, as reported by Reuters.
In January last year, the company announced that it had acquired a license to operate Virgin Mobile-branded services in the UAE.