Etisalat Group has announced its consolidated financial statements for the 12 months ending December 31 2017.
Financial Highlights and Key Developments for 2017
- Etisalat UAE subscriber base reached 12.6 million, representing a year on year growth of 3%.
- Etisalat UAE revenues amounted to AED 31.2 billion and increased year over year by 3%.
- Etisalat UAE net profit after federal royalty amounted to AED 8.2 billion and increased year over year by 5%.
- Etisalat UAE Full year EBITDA in 2017 increased by 2% to AED 16.7 billion resulting in EBITDA margin of 53%.
- Proposed dividend payout of 40 fils per share for the second half of 2017, representing a total dividend payout of 80 fils for the full year and a dividend payout ratio of 82%.
- Credit Ratings by agencies S & P Global and Moodys affirmed Etisalat Group’s high credit rating at AA-/Aa3.
- UAE ranked as global leader in Fiber Optic Network by FTTH Council.
- As part of its strategic partnership with Dubai Future Accelerators, etisalat has launched two challenges in the areas of health and digital security risks.
- Etisalat launched ‘Open Innovation Center’ to showcase Smart Solutions to Governments and Businesses hence, driving the Digital Transformation.
- Etisalat announced the successful deployment of pre-commercial 5G network in certain locations in UAE and successfully completed the fastest 5G live trial reaching 71Gbps
- Etisalat Receives Tier III Gold Certification for Operational Sustainability
- Etisalat enhances International Connectivity to UAE with AAE-1 Submarine Cable System
- Etisalat UAE revamped loyalty program ‘Smiles’, focusing on digital channels and bringing larger value to customers.
- Etisalat launched ““swyp” the new digital brand targeting the youth and digital millennials in the UAE
- Etisalat launches first IPX Exchange platform in MEA, which will augment its already existing SmartHub data center services.
- Etisalat launched 4G service in Egypt.
- Etisalat selected as the digital transformation partner for Dubai International Financial Center (DIFC)’s FinTech accelerator program.
- Etisalat launched M2M in-vehicle WiFi enabling connected fleets businesses as part of its next generation IoT solutions.
- E-Vision Partners with MBC GROUP in Exclusive IPTV/OTT Channel Distribution Rights deal in the UAE
- Etisalat introduced ‘Create Your Number’ service for all post-paid subscribers first time in the UAE.
Industry Recognition
- Etisalat named ‘Most Valuable Brand’ in the Middle East & Africa 2017, with a brand value that stands at 7.7 bn USD.
- Etisalat named ‘Best Telecom Brand’ and ‘Best Middle East Operator’ at TR Excellence 2017
- Etisalat named ‘Best Operator’ by ‘Telecoms World Middle East 2017’
- Etisalat named ‘Best Middle East Wholesale Operator’ at TR Excellence 2017
- Etisalat’s Maroc Telecom Named ‘Best African Operator’ at TR Excellence 2017
- Etisalat won ‘Telecom Group of the year’ from Comms MEA
- Etisalat won ‘Best Telecom Strategy of the year’ from Broadcast Pro ME
- Etisalat’s Smart Hub has Won the DCD Award in “Excellence in Regional & Global Datacenter Connectivity” (DCD – Data Centers Dynamic)
- Etisalat won the prestigious “Innovation Idea in Program Management” Award for the successful management & completion of Dubai Parks and Resorts project.
- Etisalat Group, Accenture and DXB Entertainments won at GLOMO Awards for Best Use of Mobile for Travel, Leisure & Hospitality for the Dubai Parks and Resorts Mobile App.
Chairman’s Statement:
Etisalat Chairman, Eissa Mohamed Al-Suwaidi, said: “2017 proved to be yet another year of good achievement for Etisalat as we affirm our position as the leading operator in the markets where we operate. Maintaining good performance, despite the global challenges facing the telecom industry, is an evidence that we continue to provide value to our customers and shareholders. We remain in a strong position to realise the opportunities that will come with the digital transformation the group is undergoing. Thanks to our experience and our strategic focus on innovation, Etisalat Group is well placed to harness growth opportunities as we continue to move forward.
“I want to praise the wise leadership of the United Arab Emirates for supporting the telecommunications sector. Etisalat is fully aligned with the Government’s drive to position the UAE among the most advanced countries in the world.
“With the unwavering support of the UAE leadership and our shareholders, along with the commitment of our world-class management team and the loyalty of our millions of customers across our footprint, I am confident that 2018 will continue the pattern of long-term, sustainable success that is the hallmark of Etisalat Group.
GCEO’s Statement:
Engineer Saleh Abdullah Al Abdooli, Group Chief Executive Officer, Etisalat, said: “In 2017, Etisalat Group continued to deliver on its promise of strong performance despite the increasing global economic challenges and the mounting pressure facing the telecom industry. We have showcased good results underpinned by our continued commitment and investments toward next-generation services and solutions adding remarkable value to the communities we serve and enhance overall customer experience.
“Last year Etisalat Group launched a new corporate strategy focusing on ‘Driving the Digital Future to Empower Societies’ enabling us to consistently push our boundaries, by responding swiftly to the global digital advancements and proactively delivering cutting-edge services and solutions to our customers. The establishment of the ‘Open Innovation Center’ was a strategic step in this direction allowing us to highlight digital innovation, its capabilities and how digitalization can come to life for Etisalat customers, businesses and governments.
“We will continue to focus on creating the world’s best and leading networks across our markets to deliver long-term value to all our stakeholders. The successful launch of the first pre-commercial 5G in UAE will enable our nation and businesses to achieve transformational growth by leveraging on new-age technologies like IoT, Artificial Intelligence (AI), robotics, cloud and future technologies that will reshape our society and industry on a large scale.
“Etisalat Group is confidently moving forward in enriching lives and enabling societies across its markets. As a group, we will continue our efforts to sustain a healthy portfolio that maximizes synergies, and focuses on enhancing customer experience, while adding value to our shareholders.
“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 and to our dedicated employees across our footprint for their hardwork and creativity allowing us to drive the digital evolution.”
Subscribers:
- Aggregate subscriber base reached 142 million, representing a year over year increase of 1% on a like for like basis.
- In the UAE the subscriber base grew to 12.6 million subscribers in the fourth quarter of 2017 representing a year on year growth of 3%.
Revenues:
- Etisalat Group’s consolidated revenue for the fourth quarter of 2017 amounted to AED 13.5 billion, representing an increase of 4% in comparison to the same period last year.
- In the UAE, revenue in the fourth quarter increased year on year by 3% to AED 8.1 billion.
EBITDA :
- Group Consolidated EBITDA for the fourth quarter of 2017 increased by 3% year on year to AED 6.4 billion.
- In the UAE, EBITDA in the fourth quarter of 2017 was AED 4.1 billion increasing year-over-year by 2% leading to an EBITDA margin of 51%.
NET PROFIT:
- Consolidated net profit after Federal Royalty reached to AED 2.0 billion in the fourth quarter of 2017.
- Earnings per share (EPS) amounted to AED 0.23 in the fourth quarter.
Source: Etisalat Press Release