Etisalat Group reports consolidated net profit in 2018

Abu Dhabi: Etisalat Group announced today its consolidated financial statements for the 12 months ending December 31 2018.

2018 Financial Highlights and Key Developments

• Twelve month consolidated revenues reached to AED 52.4 billion, an increase of 1% compared to same period last year.
• Twelve month consolidated net profit after Federal Royalty amounted to AED 8.6 billion an increase of 2.4% compared to same period last year.
• Aggregate subscriber base reached 141 million; representing Year over Year increase of 1%.
• Proposed dividend payout of 40 fils per share for the second half of 2018, representing a total dividend payout of 80 fils for the full year and a dividend payout ratio of 81%
• Credit Ratings by agencies S & P Global and Moodys affirmed Etisalat Group’s high credit rating at AA-/Aa3.
• Etisalat Group was granted the approval of the Securities and Commodities Authority on the share buyback program.
• UAE ranked as no. 1 in Fiber Optic Network deployment for the second year in a row.
• Etisalat Launched the First commercial 5G network on C-band in the MENA region in May 2018.
• Expo 2020 Dubai becomes first 5G major commercial customer in MEASA through partnership with Etisalat.
• Etisalat named ‘Most Valuable Telecoms Brand’ in MENA region in 2018 by Brand Finance.
• First Middle East telecom to offer eSIM services for latest Apple products.
• Ministry of Interior and Etisalat launched ‘Hassantuk’ fire safety solutions in UAE.
• Etisalat and China Mobile International come together to establish a point of presence at Etisalat's 'SmartHub Data Centre'.
• Etisalat and Microsoft form a strategic partnership to deliver the comprehensive, trusted Microsoft Cloud from their first datacentre located in the Middle East.
• Etisalat signed an agreement with Adnoc Distribution to create the largest digital signing advertising solution.
• Etisalat signed agreement with ASGC, Massar Solutions and ENOC to provide secure and reliable cloud solutions.
• International PCI/DSS security certification awarded to Etisalat datacenters.
• Etisalat partnered with Federal Electric and Water Authority and Emirates Transport to implement IoT solutions.
• Etisalat adopts latest GSMA’s global IoT Security Guidelines.
• Etisalat joined the ‘Global Telco Security Alliance’ to offer enterprises a world-class cyber security service across its footprint.
• National Petroleum Construction Company to work with Etisalat to adopt Artificial Intelligence.
• Etisalat launched ‘Hello Business Hub’, a one-stop place for all start-ups and SMBs.
• Etisalat introduced innovation program ‘Future Now’ featuring a scale-up program, co-creation lab, innovation center & IoT ecosystem.
• Etisalat, Ericsson and Intel conducted ‘Driving the Future of 5G Innovation’ university competition 

Industry Recognition

• Etisalat named ‘5G Innovator of the year’ by Telecoms World Middle East
• Etisalat recognised as the ‘Best Regional Wholesale Carrier’ by Telecoms World Middle East
• Etisalat achieves ‘Best Nationalisation Initiative’ in the GCC private sector by UAE Ministry of Human Resources and Emiratisation.
• Etisalat named ‘Best Middle Eastern Operator’ by TRIC.
• Comms MEA named Etisalat as ‘Telecom Group of the year’ & ‘Middle East & Africa Telecom Operator’
• Comms MEA recognises Etisalat Digital with  ‘Internet of things Solution of the year’
• Etisalat receives the prestigious International Quality Standard TL9000 certification
• Seven Etisalat stores rated 5 Stars as part of TRA’s ‘Erteqa’ initiative for customer service.

Chairman’s Statement:

Etisalat Chairman, Eissa Mohamed Al-Suwaidi, said: “Our journey in 2018, marks another successful year for Etisalat in realizing its vision towards leading the digital future to empower socialites. Etisalat’s solid financial performance is a reflection of our focus on sustaining our core business while enhancing and accelerating our digital portfolio. There was an increased effort on diversifying into new growth opportunities transforming Etisalat into an agile, digital and more efficient company.

Today, we look at the future with optimism as we are determined to progress on solid grounds and continue innovation while focusing on driving the digital transformation to take advantage of future opportunities enabling us to add greater value to our customers and shareholders. Our continued efforts will provide consumers a wide portfolio of innovative products and services, integrated solutions, and digital platforms.

“I want to thank the wise leadership of the United Arab Emirates, President HH Sheikh Khalifa bin Zayed Al Nahyan, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces for supporting the telecom sector and for their vision for the UAE that helped fuel our success. Thanks to the steady support of our shareholders, loyalty of millions of our customers across our footprint, and to the commitment and hard work of the management team.”

GCEO’s Statement:

Engineer Saleh Abdullah Al Abdooli, Group Chief Executive Officer, Etisalat, said: “Etisalat had a landmark year in 2018 as we embarked on a successful journey into the digital future seizing opportunities and overcoming challenges in a fast evolving industry. Etisalat is moving forward with confidence setting new goals to drive digital transformation across the company, its customers and stakeholders.

“Etisalat’s performance in 2018 is a testimonial of the Group resilience and ability to mitigate the pressures arising from the dynamic challenges facing the industry. Etisalat’s strategy ‘Driving the digital future to empower societies’ helped deliver a digital experience and enable innovation across our customers and businesses.

“With continuous efforts towards delivering the 5G promise, Etisalat’s pioneering efforts will allow our customers to enjoy and unleash highly connective technologies blending physical and digital realms from AR and VR to IoT, AI, autonomous vehicles, advanced robotics, 3D printing, wearable tech and more. Innovation remains at the core of our strategy with a focus on empowering digital transformation by enhancing and building one of the most advanced networks in the region. 

“In 2018 we pursued an ambitious agenda in the digital space to maintain our leadership position across our operations. Our focus remains on providing governments, businesses and individuals with innovative, simple, and relevant solutions that harness the power of technology and maximizes their potential.

“I am confident that Etisalat Group will deliver the ambitions and aspirations of our customers, by capitalizing on its knowledge, vast capabilities, talent, assets, and its strong financial performance. We will continue to support the communities we serve and add value to the markets where we operate. Customer experience remains a key area of focus in which we will strive to provide our customers with a superior service level on top of our high quality products.”

“We are thankful to the wise leadership of the UAE and our shareholders for their steady support in this journey, our customers for their continued confidence and trust. I am confident that 2019 will continue the outline of long-term, sustainable success that is the hallmark of Etisalat Group. 

Subscribers:

In the UAE, the subscriber base reached to 12.6 million subscribers, while Etisalat Group aggregate subscribers reached 141 million subscribers representing a year on year increase of 1%.

Revenues and Net Profit

Etisalat Group’s consolidated revenue for Q4 of 2018 amounted to AED 13.0 billion. While consolidated net profit after Federal Royalty in Q4 amounted to AED 2.0 billion representing an increase of 2.4% in comparison to the same period last year resulting in a net profit margin of 16%.

EPS:

Earnings per share (EPS) amounted to AED 0.23 in the fourth quarter and AED 0.99 for the full year of 2018, an increase of 2.4% in comparison to the same period last year.

-Ends-

© Press Release 2019