Feb 09 2012 |
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UPDATE: UAE's Etisalat 4Q Net Pft Slumps 65% On India Ops Impairment
Thursday, Feb 09, 2012
--4Q profit plunges 65% on Indian operations impairment charge
--Full year mobile subscribers flat on the year, internet subs decline
--Continues to assess legal consequences of Indian Supreme Court decision
By Shereen El Gazzar
DUBAI (Zawya Dow Jones)--Abu Dhabi's Emirates Telecommunications Co., or Etisalat, the Middle East's biggest telecom provider by market value, posted Thursday a 65% slide in fourth-quarter net profit as a hefty impairment charge related to its Indian operations weighed.
Etisalat made a fourth-quarter net profit of 705 million U.A.E. dirhams ($192 million), according to Zawya Dow Jones calculations, down sharply from AED2.03 billion in the year before.
The telco reported Thursday full year net profit of AED5.84 billion, compared with AED7.63 billion in the year earlier, it said in an emailed statement.
Etisalat said it decided to recognize an impairment charge in its 2011 financial statements amounting to AED3.04 billion against the full carrying value of goodwill; amounting to AED1.2 billion; and the net assets including licenses of its Indian operations.
"The net impact of this charge on our consolidated net profit after Federal Royalty amounts to AED1.02 billion?," it added.
Etisalat DB Telecom Pvt., the Abu Dhabi-based company's majority-owned venture in India, is one of a number of companies impacted by India's Supreme Court last week cancelling all mobile-telecom-service licenses issued without auction after January 2008, raising uncertainty over billions of dollars that international companies have invested in the South Asian nation.
The telco said it "will continue to assess its strategic options concerning its operations in India".
Etisalat's full year 2011 revenues came in at AED32.2 billion, compared with AED31.9 billion a year ago, while earnings per share fell to AED0.74, from AED0.97 in the same period.
Etisalat mobile, telephone and internet subscribers in the U.A.E. by the end of 2011 were at 7.8 million, 1.05 million, and 1.41 million respectively, the company said. Mobile, fixed-line, and internet subscribers were 7.8 million, 1.24 million, and 1.32 million a year ago, according to Etisalat's full year results published last year.
Etisalat shares closed flat at AED9.45 Thursday.
-By Shereen El Gazzar, Dow Jones Newswires, +9714 446 1684 Shereen.elgazzar@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
09-02-12 1309GMT
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