Exchange rate liberalisation reduces Etisalat’s revenues by 50% during H1 2017

02 Nov 2017

Etisalat Egypt’s revenues fell 49.7% in the first half (H1) of this year compared to the same period last year. That came due to the difference in the currency exchange rate because of the liberalisation of the exchange rate of the pound against the dollar, which caused the rise of the UAE dirham’s exchange rate against the Egyptian pound. The company’s revenues fell from AED 2.2bn in the period from January to June 2016 to reach AED1.1bn for the comparative period of 2017, thus reducing revenues by AED 1.1bn.

If revenue is calculated in Egyptian pounds, the company achieved a slight decline, with revenues in H1 2017, falling to EGP 5.2bn against EGP 5.7bn during the comparative period in 2016.

The average price of the AED during H1 2016 was about EGP 2.6, reaching EGP 4.8 during H1 2017.

Etisalat’s revenues in Q2 2017 increased to AED 568m (EGP 2.7bn) compared to AED 548m (EGP 2.5bn) during the same period of the previous year, while the revenues of the company declined by 46% compared to the same period of 2016, and the company’s unit in Egypt contributes 4% of the group’s revenues.

The financial results of Etisalat Group for Q2 of this year increased the total profits of the company before deduction of depreciation and taxes from AED 197.2m (EGP 946m) to AED 204.4m (EGP 1.1bn) 3% of the total profits of the group.

The number of Etisalat subscribers in Egypt reached 24 million by the end of Q2 2017, out of a total of 100 million mobile subscribers in Egypt.

According to the financial results of Etisalat Group, total revenues for Q2 of this year amounted to AED 12.8bn, a growth of 3% over Q1 of the same year, while total revenues for H1 of this year were AED 25.2bn, a decrease of 3% 2016.

The group’s net profit declined by 6% during the Q2 of this year compared to Q1 2017. The group’s net profit during the period amounted to AED 1.97bn. The group’s net profit for H1 2017 was AED 4.06bn, 6% compared to the H1 of last year.

dailynewsegypt

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