Etisalat announces 27% increase in quarterly consolidated revenues to Dhs12.6bn
Etisalat Group announced today its consolidated financial statements results for the first six months of 2014, with an increase in consolidated revenues and subscribers both in domestic and international markets.
Etisalat Group reported strong consolidated revenues during the second quarter of FY2014 reached Dhs 12.6 billion representing positive results after the acquisition of Maroc Telecom earlier in May.
Key financial highlights and developments:
· The Board of Directors has approved an interim dividend distribution for the six months period ended 30 June 2014 at the rate of 35 fils per share. This is subject to final approval at the Annual General Assembly. Interim dividend distribution of 35 fils per share will commence from 13 August 2014 to those shareholders registered in the Shareholders’ Register at the close of the business day on 30 July 2014.
· The net profit after federal royalty for the first half was Dhs 4.5 billion, an increase of 19% year on year
· Completed buying the 53% of Vivendi’s share in Maroc Telecom for €4.138 billion, which was marked as the largest ever M&A deal in Morocco, and largest MENA cross border deal and largest ever telecom transaction in North Africa
· Successfully issued the inaugural bond under its recently established Global Medium Term Note (GMTN) Programme that was listed on the Irish Stock Exchange on 22 May 2014 (Net proceeds from the issuance of the bond was used for repayment of the outstanding facilities of €3.15 billion that were used to fund the acquisition of the Vivendi’s 53-percent stake in Maroc Telecom.)
· Consolidated revenues during the second quarter of 2014, amounted to Dhs 12.6 billion, representing a 27% increase from the same period last year
· Aggregate subscriber base grew by 27% Year on Year (June 2013- June 2014) to reach 182 million subscribers by end of June 2014, benefiting from the consolidation of Maroc Telecom
· Acquired 3G licence in Pakistan and Ufone was the first operator to launch 3G services
· Credit Ratings Agencies affirmed Etisalat’s high credit Ratings as follows: S&P(AA-/ stable outlook); Moody’s (Aa3/ stable outlook) and Fitch (A+/ stable outlook)
His Excellency Eissa Al Suwaidi, Chairman of Etisalat, said: “The overall constantly remarkable performance of Etisalat shows our dedication to become the leading and most admired emerging market telecom group.”
“The key development for this quarter was completing the acquisition of Vivendi’s 53% shareholding in Maroc Telecom, which we are confident it adds a great value to Etisalat and its shareholders, besides the other key developments we witnessed in different markets, and it will have a transformational impact on Etisalat and its key financials. Maroc Telecom is a well-run company, and this acquisition is the largest deal in the history of our great company and a truly exciting moment for us all. This remarkable milestone could not have been reached without the wise leadership for the continuous support of the UAE government. They play a vital role in enabling innovation in the telecommunications sector, and we would like to thank them for their support as we pursued this important acquisition. ”
Ahmad Abdulkarim Julfar, the Chief Executive Officer at Etisalat Group, “This acquisition marked the largest and most complex deal in the history of Etisalat, and will completely change the telecoms landscape in Africa; it is one of the largest cross-border M&A transactions in the MENA region of all time, and it expands Etisalat’s reach to 19 markets.”
“Our experience in markets across Middle East, Africa and Asia will truly complement Maroc Telecom’s deep expertise in their home market and in other markets in Africa”
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