Dubai telcom loses 30K mobile subscribers with Q1 profits down by 8.4%.
Etisalat today released their 2010 first quarter financial report stating a loss of 8.4% profits compared with the same period in 2009 while also reporting losing 30, 000 mobile subscribers in the first three months of the year.
Etisalat announced net profits of AED1.99 billion for Q1 2010, an 8.4% dip in profits compared to 2009′s AED2.18 billion. Meanwhile, net revenues increased by 5% to AED 7.9 billion compared AED 7.5 billion in the same quarter of 2009.
The decline in profits is not “necessarily a problem,” said Matthew Reed, Middle East telecom analyst at Informa Telecoms and Media. “There could be good reasons for that. It could reasonably be the expenses related to building of new networks and upgrades in others.”
Etisalat also reported a mobile base of 7.71 million users by Q1 2010, a drop of 30,000 compared with the end of 2009. Fixed line services remained gloomy as well with a install base of 1.3 million subscribers down from 1.31 million at the end of 2009. However, its internet service received a boost gaining 50,000 subscribers in the first quarter to reach an install base of 1.38 million users, compared to 1.33 million in December 2009.