Etisalat Group's 2019 earnings increase despite difficult market conditions

Etisalat Group's 2019 earnings increase despite difficult market conditions
Etisalat group net profit after royalty for 2019 increased by 1% to AED 8,7 billion compared to AED 8,6 billion a year ago despite difficult market conditions. Revenue for the Abu Dhabi-listed group of telecom operators fell 0,38% to AED 52.2 billion this year from AED 52.4 billion a year ago due to currency fluctuations and declining revenue. mobiles of UAE operations. The prepaid mobile phone market has been under pressure for several quarters due to low consumer confidence and telecom operators have focused on the postpaid mobile phone market to increase average revenue per user and avoid their revenue and profit. to decline According to research firm International Data Corporation, telecommunications services are feeling the pinch of low consumer confidence and a slowdown in mobile data services. Even in 2020, spending in the telecom sector is expected to grow more slowly at 1.01%. Sukhdev Singh, chief executive of research and consulting services provider Kantar, told TechRadar Middle East that most UAE companies have faced headwinds in the last two to three years, affecting ; global economy in many ways, including the use of telecommunications services. However, he said that Etisalat managed to maintain overall results despite the drop in revenue. "As we get closer to Expo 2020, which starts in the fourth quarter of 2020, economic activities are expected to resume and help telecom operators outperform other sectors," he said. The total number of Etisalat subscribers reached 149 million, an increase of 6% year-on-year. The company proposed a dividend of 40 strands per share for the second half of 2019, representing a total dividend of 80 strands for the full year and a payout ratio of 80%.

(Image credit: future)

(Image credit: Future) Saleh Abdullah Al Abdooli, Group CEO, Etisalat Group, said 5G is a game changer, with Etisalat taking the lead in launching the network that will amplify the use of futuristic services, aim to new opportunities and will bring implemented 5G use cases in verticals. "It also set the roadmap for services based on emerging technologies such as IoT, cloud, big data, AI, robotics, autonomy, AR/VR autonomy, becoming a trusted partner supporting transformation in a digitally disrupted and fully connected world" , He said. He told me. Despite local telecom operators taking the lead in offering 5G networks, Singh said the 5G pickup shouldn't break the cap any time soon, given the limited number of phones in the affordable range. "Also, the excellent 4G network in the UAE leaves a bit of a need for something faster, except for its novelty factor. IoT and M2M adoption are likely to help 5G adoption more than consumer demand in the initial phase," he said. The operator's profit in the fourth quarter was flat at AED 2 billion despite revenue rising 2.3% to AED 13.3 billion from AED 13 billion a year ago.