1Q12 net profit increase by 21.0%YoY to SAR1,207mn
1Q12 operating profit increase by 19.0%YoY to SAR1,254mn
Sales revenue cross SAR5.0bn in 1Q12
Net profit slightly above our estimate
Analyst comments:
Etihad Etisalat 1Q12 net profit was slightly above our estimate of SAR1,150mn, a deviation of 5.0%. Net profit growth of 21.0%YoY to SAR1,207mn was driven by increase in revenue from voice services. Sales revenue witnessed a healthy growth of 11.7%YoY to SAR5,009mn in 1Q11. The growth rate in sales has come down compared to the previous quarters which is not surprising considering the larger base and as the company enters into the maturity phase. The YoY sales growth in 1Q11, 2Q11, 3Q11 and 4Q11 was 25.0%, 29.1%, 16.3% and 29.8% respectively.
The company attributed the rise in revenues to higher revenues from voice services due to increase in number of minutes used. The company also cited a rise in post-paid subscribers and increase in business sector revenue. Data revenue increased by 28.0%YoY in 1Q12. The share of data revenue increased to 23.0% of total revenue in 1Q12 compared to 20.0% in 1Q11. The increase in amount of high margin data revenues resulted in an increase in EBITDA margin to 36.0% in 1Q12 compared to 35.0% in 1Q11. According to the statement posted on Tadawul, the Board of Directors are scheduled to meet on April 24th to determine the amount of dividend for 1Q12. We are awaiting detailed results for a more elaborate analysis. Our 2012 net profit estimate is SAR5,551mn while our full year dividend forecast is SAR4.0 per share.
Umar Faruqui, ACCA
Financial Analyst
Research & Publications
Global Investment House
t: (965) 2295-1438
f: (965) 2295-1299
e: ufaruqui@global.com.kw
w: www.globalinv.net
P.O.Box: 28807 Safat, 13149
Kuwait
© Press Release 2012
