• Groups’ international revenues rise 3% to AED5.4b due to strong performance from Egypt and Pakistan.
• Group’s net profit rises 5.7% to AED2.41b due to higher EBITDA, better performance of associates and lower federal royalty charges.
• Acting CEO expects heightened macro risks to likely persist and continue to pressure its business at least for the remainder of 2020.

Dubai: Etisalat’s revenues from the UAE fell three per cent year on year to AED7.5 billion in the third quarter despite a three per cent increase in international revenues to AED5.4 billion.

The Group’s overall revenues stood at AED13 billion, flat when compared to a year ago.

However, the Group’s net profit rose 5.7 per cent to AED2.41 billion in the third quarter of the year due to higher EBITDA, better performance of associates and lower federal royalty charges.

Quarter on quarter, the net profit increased by one per cent.

The growth in international revenues is mainly attributed to the strong performance of Etisalat Misr and improvement in the performance of its operations in Pakistan despite the unfavourable exchange rate movement in Pakistani Rupees against the UAE Dirham.

 “In the third quarter, as restrictions began to ease, we noticed a gradual improvement in the commercial activities; however, remaining below pre-Covid-19 levels as a result of weaker macro-economics,” Hatem Dowidar, Acting CEO for Etisalat Group and CEO for Etisalat International, said.

The decline in the UAE revenues is attributed to the fact that commercial activities remain below pre-Covid-19 levels as the macro-economic situation continue to pressure consumer and corporate spending.

Mobile revenues hit badly

As a result, mobile and fixed voice, outbound roaming, visitor roaming and handset sales declined year over year. This was partially offset by growth in data, digital, wholesale and TV services.

Mobile segment revenue declined year over year by 12 per cent to AED2.7 billion, attributed to the impact of Covid-19 that resulted in a drop in mobile prepaid and roaming revenues, in addition to increased penetration of OTT services.

Fixed segment revenue increased by two per cent to AED2.8 billion, attributed to expanding eLife customer base and TV services.

Other segment revenue increased by four per cent year over year to AED1.9 billion, attributed to higher digital and ICT services.

In Egypt, revenue for the third quarter stood at AED1.1 billion, an increase of 18 per cent year on year due to strong contribution from mobile data and national roaming revenue.

In Pakistan, revenue for the third quarter was AED0.7 billion representing a year over year decrease of one per cent but in the local currency, revenue increased in the quarter by three per cent attributed to better performance in the mobile operations, fixed broadband and Ubank segments.

Dowidar expects heightened macro risks will likely persist and continue to pressure its business at least for the remainder of 2020.

In the UAE, the active subscriber base amounted to 12.1 million subscribers in the third quarter of 2020, which declined by two per cent year on year while the mobile subscriber base decreased by three per cent year on year to 10.3 million subscribers, attributed to the prepaid segment that dropped by five per cent.

The postpaid segment grew by five per cent year over year. eLife subscription continued to drive consistent growth with a four per cent year on year increase to 1.1 million subscribers while the total broadband segment grew by three per cent year on year to 1.2 million subscribers.