MyAdhan Blog

Link: Emirates Telecom Q2 profit soars on Saudi stake sale

Emirates Telecommunications Corp (Etisalat) ETEL.AD posted a 58 percent jump in second-quarter profit on Monday, topping most analysts forecasts as it profited from the sale of a stake in its Saudi affiliate. Etisalat, the largest Arab telecom company by market value, said profit attributable to shareholders rose to 3 billion dirhams ($817 million) in the three months to June 30 from 1.89 billion a year earlier. That beat two of three forecasts from analysts polled by Reuters last month, which ranged from 2.03 billion dirhams to 3.09 billion. The company sold part of its stake in Etihad Etisalat (Mobily) 7020.SE in April, reducing its shareholding in Saudi Arabia’s second mobile phone operator to 26.25 percent from 35 percent and generating a profit of 1.78 billion dirhams. “The sale of a stake in Mobily has generated an exceptional profit in the second quarter,” Etisalat Chairman Mohammed Omran told Reuters. Earnings per share rose to 0.50 dirham from 0.32 dirham a year earlier, Etisalat said, adding it made more money from new and current subscribers. Revenue rose 21.5 percent to 6.38 billion dirhams. Etisalat had 6.83 million mobile phone customers the end of June, up 7 percent from Dec. 31, Etisalat said. Most of Etisalat’s subscribers are in the UAE, home to 4.5 million people, and where many people own more than one phone.