Etisalat’s operating expenses up 5.6%

ABU DHABI / WAM

The total operating expenses of Emirates Telecommunications Group Company PJSC, Etisalat, amounted to AED 34.6 billion from AED 32.75 billion last year. The 5.6 percent growth, which excludes the royalty fees to the Federal Government, comes on the back of tremendous business development and strong performance by the Group in 18 markets across the world.
The group’s total operating profits rose to AED11.4 billion, with net profits increasing by 2 percent, compared to the previous year, to reach AED 8.4 billion. The earnings per share rose to AED 1.02. As per the company’s financial statements, AED 11.6 billion of direct sale transactions were conducted in 2016, accounting for 33.5 percent of the total operating expenditure, while the consumption value reached AED5.7 billion during the same period.
Employee payroll was AED 5.17 billion by end of December from 5.4 billion by end of 2015. Etisalat’s network and other related expenses hit AED 2.88 billion. Organisational and marketing costs reached AED 2.55 billon, and offsetting losses stood at AED 1.67, with the remaining costs divided over operating rentals, exchange losses and other operating expenses.
According to the financial statements, Etisalat considers the government’s concession fees, which totaled AED5 billion in 2016, as an operating expense in its profit and loss statement on the basis that the expenses that should be borne by the company as a result of using the federal government’s facilities will have to considered as operating costs. Etisalat’s shareholders on April 9 approved the board’s recommendation to pay full 2016 dividends of 80 fils per share during the annual general meeting.
“The telecommunication industry never stands still and neither does Etisalat Group. We have witnessed unprecedented change in the forty years since our journey began. All services we enjoy today were only ideas in the making back in 1976, transitioning from simple wired voice and internet access services, into rich fixed offerings and total mobility solutions, a shift into ubiquitous connectivity that was aggravated by the proliferation of smart devices, a revolution that has commoditized connectivity and moved our industry into a new era,” the company chairman said.
“Throughout our journey, we have accomplished a renowned record of technological firsts; the same were only collateral to our sincere efforts to harness the power of technology in order to bring the best possible and the latest available to our customers,” he added.