By: Mahmoud Gamal
Dubai – Mubasher: The profits of listed telecom companies on the Dubai Financial Market (DFM) and Abu Dhabi Exchange (ADX) increased by 3.4% in 2016, backed by higher revenues.
Net profits of Etisalat and du reached about AED 10.36 billion ($2.82 billion) in 2016, up from AED 10.016 billion ($2.73 billion) in 2015.
The sector's total revenues rose by 2.3% last year reaching AED 65.08 billio, compared to AED 63.66 in 2015, according to Mubasher statistics.
On the fourth-quarter level, the telecom firms' profits retreated 15.6% to AED 2.59 billion compared to AED 3.07 billion in the year-ago period.
The financial results of UAE telecom firms are "good," especially amid the currencies' fluctuations and the fierce competition after some customers tend to seek free calls through applications and programmes available online, technical analyst Amer Al Mohanady told Mubasher.
Emirates Integrated Telecommunications Group (Etisalat) posted net profits of AED 8.42 billion attributable to shareholders in 2016, up 1.9% from AED 8.26 billion in 2015.
The group’s consolidated revenues increased by 2% to AED 52.36 billion in 2016, compared to AED 51.33 billion in the previous year. This was due to stronger performance from domestic operations, as well as Maroc Telecom's operations.
Etisalat’s revenues grew by 5.5% on the back of higher revenue from data services, a wider customer base of broadband usage, and increased offering of business solutions, digital, and ICT services.
Moreover, du generated profits of AED 1.75 billion in 2016, down 9.8% from AED 1.94 billion in 2015.
The company’s revenues rose by 3.16% to AED 12.72 billion in 2016, compared to AED 12.33 billion in the previous year.
Al Mohanady added that despite the rising challenges in the sector, it is expected that both companies will see good annual profits through the continuation of a specific strategy for distribution, which may attract more investments.
Translated by: Sara Ghali
