Displaying items by tag: Net Profit
UAE telecom company Etisalat Group, which operates and owns subsidiaries in Middle East, Africa and Asia, released its consolidated financial statement on October 25 for the three months ending 30 September. Consolidated net profit after Federal Royalty amounted to AED 2.4 billion resulting in a net profit margin of 19 percent and increased year-on-year by 29 percent. The company’s consolidated revenues amounted to AED 12.9 billion.
Etisalat Group’s UAE branch saw a 3 percent revenue increase year-on-year amounting to AED 7.6 billion. The UAE branch’s net profit amounted to AED 2.0 billion representing 4 percent increase year-on-year. Etisalat’s UAE subscriber base grew 2 percent year-on-year to reach 12.5 million. The company’s aggregate subscriber base reached 140 million up slightly from 139 million in Q2.
“Etisalat continues to deliver solid performance in the third quarter, despite the prevailing global economic challenges and the vastly transforming industry,” said Etisalat Group CEO Saleh Al Abdooli. “We are on the verge of entering a new era, which transcends any technological disruption we ever witnessed, and will be altering and reshaping our society and industry on a large scale.”
In Q3 2017, Etisalat signed a strategic partnership as part of Dubai Future Accelerators program to bring future medical care solutions to UAE and the MENA region. The company successfully completed the fastest 5G live trial globally reaching 71Gbps, and launched 4G services in Egypt through its subsidiary Etisalat Misr. Etisalat also launched a new brand ‘Swyp’ targeting youth in UAE.
“Etisalat is confidently moving forward and progressing positively in enriching lives and enabling societies across its footprint,” said Mr. Al Abdooli. “As a group, we will always assure a vigorous portfolio that is generating synergy, focusing on customer experience, growing value, and operating as one family.”
Mr. Al Abdooli added, “As we look back at our achievements, we sense and honor the great support that was extended to us by the wise leadership of the UAE, who did not only enable the creation of a world class telecom sector, but are also leading the way and acting as role models in technology adoption. Appreciation is also extended to our shareholders and loyal customer, to whom we owe more success and greater achievements.”
Ericsson is set to reduce more staff following the disclosure of its financial results for Q2 in 2017. The company has confirmed it will axe staff, although it didn’t speculate how many jobs were at risk, in addition to this it will also reduce its real estate footprint as part of its efforts to make $1.2 billion in cuts.
Ericsson remains in the red following the publication of its Q2 financial performance, and alarmingly indicates a 164% year-on-year decline in net income. However, Ericsson CFO, Carl Mellander, has claimed that the latest round of cuts is part of its strategy to make ‘real efficiency gains’ adding that the savings will enable them to address ‘underperforming parts of the business’.
Ericsson CFO also declined to identify which locations are likely to be effected by the cutbacks, but conceded that it was highly likely that the changes proposed will be implemented and executed internally in a quick fashion. The financial spreadsheet makes grim reading for the Swedish telco, net sales are down 8% year-on-year to SEK 49.9 billion, and its bottom line swung from a SEK1.6 billion profit in Q2 in 2016, to a loss of SEK1 billion for the same period this year.
Ericsson highlighted a number of contributory factors as to why it had endured such a poor financial performance, but stressed that the biggest issue was the faster than expected decline of the overall RAN (Radio Access Network) led by the reduction in demand from China and India. Industry analysts are predicted that the decline in the RAN market will accelerate even more in 2017.
Ericsson has made a number of decisions in recent years in an attempt to halt its slide, but none of these measures introduced have been unable to have the desired effect required. Following its Q1 results earlier this year, the firm pointed to ongoing restructuring programs as a reason for losses.
Ericsson’s new strategy includes focusing on the company’s core telecommunications sector, whilst also attempting to reduce the impact of under-performing units and reviewing long-running unprofitable contracts. Mellander has claimed that he doesn’t expect to see a tangible impact from its rollout of 5G technologies and services to its bottom line until 2019, citing that LTE still had a ‘lot to give’ as operators are faced with the continually requirements to increase capacity on their network.
The CFO said, “There are huge sections of the population not covered by 4G, so I think a lot will happen there. The 4G technology being brought in now is geared towards 5G evolution. Short-term I don’t want to be overly optimistic – we are seeing a decline in the market which is a bit larger than we thought – but longer-term we want to double our profitability beyond 2018.”