Etisalat Group Reports Strong Performance in Annual Financial Results

PHOTO

Rise in profit and revenue reported for financial year 2016
Board propose final dividend payout of 40 fils per share for 2016, representing a total dividend payout of 80 fils for the full year

Abu Dhabi, March 8 2017

Etisalat Group announced today its consolidated financial statements for the 12 months ending December 31 2016.

Financial Highlights for 2016

Aggregate subscriber base reached 162 million.

Consolidated revenues amounted to AED 52.4 billion and increased year over year by 2%.

Consolidated EBITDA totaled AED 26.3 billion, resulting in EBITDA margin of 50%.

Consolidated net profit after Federal Royalty amounted to AED 8.4 billion resulting in a net profit margin of 16% and increased year over year by 2%.

Proposed final dividend payout of 40 fils per share for 2016, representing a total dividend payout of 80 fils for the full year and a dividend payout ratio of 83%.

Credit Ratings by agencies S & P Global and Moodys affirmed Etisalat Group’s high credit rating at AA-/Aa3.

Financial Highlights for Q4 2016

Consolidated revenues for the fourth quarter amounted to AED 12.9 billion, representing an increase of 3% year over year.

Consolidated EBITDA for the fourth quarter totaled AED 6.2 billion resulting in EBITDA margin of 48%.

Consolidated net profit after Federal Royalty amounted to AED 2.2 billion resulting in a net profit margin of 17%

Key Developments for 2016

The UAE, Etisalat’s home market, ranked number one globally for the highest fibre network connectivity, with household penetration of 93.7%.

Acquisition of the 4G Services license in Egypt, 3G in Togo, and universal license in Ivory Coast.

Etisalat Group completed the sale of its shareholding in Canar Telecom in Sudan, as part of portfolio optimization.

Launched a new Business Unit – Etisalat Digital that oversees the Group digital transformation agenda;

Etisalat was the first in the region to conduct live 5G trials, and to launch a live and operational Telco Cloud infrastructure as part of its virtualization plans.

Announced as Premier Partner for telecommunication and digital services for Dubai Expo 2020;

Delivered integrated Smart City project Dubai Parks & Resorts, which opened in 2016;

Etisalat launched commercially VoLTE service; featuring high definition voice and video browsing;

Etisalat expanded its mobile commerce capability with the launch of its new ‘Etisalat Wallet’ service in the UAE;

International Recognition

Etisalat Group won two Mobile World Congress Glomo awards, including the most prestigious title of overall winner and ‘supreme’ Connected Life Champion in 2016

Etisalat Group received two special awards from GSMA for the work successfully executed in Pakistan and UAE with Digital Identity service – Mobile Connect for 2016.

Etisalat Group Wholesale unit has won the Best Middle Eastern Wholesale Carrier in The Telecoms World Awards 2016, and the Best Middle Eastern Wholesale Carrier from Global Carrier Awards 2016.

Chairman’s Statement:

Etisalat Chairman, Eissa Mohamed Al-Suwaidi, said: “Etisalat Group continues to strengthen its position as one of the leading operators in emerging markets. In the face of global economic pressure, Etisalat Group has, once again, demonstrated strong performance, evidence of a business that is both robust and resilient.

“In terms of achievements, 2016 was a very important period for ‘Etisalat Group’ as we laid key foundational steps in our journey towards digital transformation. We also continued our relentless efforts to provide our customers with a wide portfolio of innovative products and services, integrated solutions, and smart platforms.

“Etisalat Group will continue to rise to the challenge and deliver against its digital transformation agenda, which will entail a change in the way we do business, for the ultimate endeavor of enhancing our customers’ experience and bringing more value to them. Etisalat will also continue to leverage its portfolio and strong financial position to capture the opportunities and mitigate the challenges facing the sector.”

“Etisalat Group has reached the position we are in today as a result of the support of the wise leadership of the UAE. I want to sincerely thank our leaders for their vision and continuous support of Etisalat, and to reiterate our commitment to lend our full potential in order to facilitate the realization of their strategic vision of delivering a smarter future.”

“Our current and future success are a natural outcome of the long-standing relationship and support of our shareholders, loyal customers, hard work of our employees and strong commitment of our management team and their ability to translate our organizational goals into reality.”

GCEO’s Statement:

Engineer Saleh Al Abdooli, Group Chief Executive Officer, Etisalat Group, said: “Etisalat Group is in a stronger position today to seize the opportunities and overcome the challenges of our fast-evolving industry, and move forward with confidence as a leading provider in our operating markets. Our financial results are a testimonial of the Group resilience and ability to mitigate the pressures arising from the global economic slowdown.”

He added: “Etisalat Group has maintained its high ratings with international credit agencies, and is serving a large and strong customer base across its international footprint, with a considerable potential to grow further”

“In 2016 we have crossed another critical milestone in our journey as we started to pursue an ambitious agenda in the digital space; the same is a necessity in order to maintain our leadership position in local and international markets as digital becomes the next big thing. 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 enable a smarter future, by capitalizing on its knowledge, capabilities, talent, assets, and its strong financial performance. We will continue to support the communities we serve and add value to the markets we operate. In addition, 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 grateful to our government and shareholders for their unwavering support; to our customers for their continued loyalty and trust, and to our engaged employees who are translating our aspirations into reality with their hard work and dedication”

Subscribers:

Aggregate subscriber base reached 162 million.

In the UAE the subscriber base grew to 12.3 million subscribers in the fourth quarter of 2016 representing a year on year growth of 6%. Subscriber growth continued to be driven by strong performance of mobile and eLife segments. The mobile subscriber base grew year on year by 7% to 10.4 million subscribers.

Total broadband segment grew by 5% year on year to 1.1 million subscribers.

Revenues:

Consolidated revenues amounted to AED 52.4 billion and increased year over year by 2%.

Consolidated revenues for the fourth quarter amounted to AED 12.9 billion, representing an increase of 3% year over year.

In the UAE, revenue in the fourth quarter increased year on year by 14% to AED 7.9 billion. For the full year, revenue increased by 5% to AED 30.3 billion.

EBITDA :

Consolidated EBITDA totaled AED 26.3 billion, resulting in EBITDA margin of 50%.

Consolidated EBITDA for the fourth quarter totaled AED 6.2 billion and resulting in EBITDA margin of 48%.

In the UAE, EBITDA in the fourth quarter of 2016 was AED 4 billion increasing year-over-year by 3% leading to an EBITDA margin of 51%.

NET PROFIT & EPS:

Consolidated net profit after Federal Royalty amounted to AED 8.4 billion resulting in a net profit margin of 16% and increased year over year by 2%.

In the fourth quarter, consolidated net profit after Federal Royalty amounted to AED 2.2 billion resulting in a net profit margin of 17%

Earnings per share (EPS) amounted to AED 0.26 in the fourth quarter of 2016 and AED 0.97 for the full year of 2016.

Proposed final dividend payout of 40 fils per share for 2016, representing a total dividend payout of 80 fils for the full year and a dividend payout ratio of 83%.