e&
ETISALAT
0.00%
18.32
0.00
ETISALAT
Emirates Telecommunications Corporation announced its consolidated financial results for 2013. Revenues surged by 18% YoY to AED38.9bn (in line with consensus). Net profit rose by 5% YoY to AED7.08bn (9% below consensus estimates). Meanwhile, Etisalat expects to finalize its USD4.2bn deal of acquiring a controlling stake in Maroc Telecom (IAM) by the end of May. On the devidend’s front, the BoD recommended the distribution DPS of 35fils/share for H2 2013, bringing total DPS to 70fils/share, implying a dividend yield of 5.6%, according to Muabsher Trade and Research.
“ The annual growth in revenues was mainly attributed to: (1) 9% YoY rise in UAE revenues to UAE25.95bn (accounting for 65% of total revenues) and (2) 47% YoY rise in international operation revenues to AED13.88bn (accounting for 35% of total revenues)”, according to Mubasher. However, the increase in revenues did not fully trickle down to earnings, due to the following:
1. An inflated record for 2012 for the partial sale of investment in XL Axiata in September 2012 resulting in a non-recurring capital gain of AED860mn.
2. A higher effective tax rate recorded in 2013 of 8% vs. 1% in 2012, mainly due to higher taxes related to subsidiaries.
3. Recording a minority interest expense of AED673mn vs. a positive amount of AED 170mn, mainly on better subsidiaries’ operations.
“ The annual growth in revenues was mainly attributed to: (1) 9% YoY rise in UAE revenues to UAE25.95bn (accounting for 65% of total revenues) and (2) 47% YoY rise in international operation revenues to AED13.88bn (accounting for 35% of total revenues)”, according to Mubasher. However, the increase in revenues did not fully trickle down to earnings, due to the following:
1. An inflated record for 2012 for the partial sale of investment in XL Axiata in September 2012 resulting in a non-recurring capital gain of AED860mn.
2. A higher effective tax rate recorded in 2013 of 8% vs. 1% in 2012, mainly due to higher taxes related to subsidiaries.
3. Recording a minority interest expense of AED673mn vs. a positive amount of AED 170mn, mainly on better subsidiaries’ operations.
Source:
Mubasher