Etisalat 2009Q3 profit AED2.25bn +5%

[sharewadi]

Etisalat financial statements released on ADX website about 1420 today. A quick summary below. Don't take any calculated figures as spot-on, I was just trying to make rough estimates. Etisalat shares closed at AED 12.45 today, down 0.4% I think (ADX was down about 1%) before results released to the public.

ADX 18 October 2009 pm:

(ETISALAT) Etisalat announces results for the nine month period ended 30 September 2009

Etisalat Financial Statement summary

2009 Q3 Revenue almost unchanged from 08Q3 at AED 7.63 billion (slightly down)
Operating Profit up about 6% to AED 2.23 billion (after 50% royalty deduction)
Net Profit due to shareholders up about 5% to 2.25 billion
EPS AED 0.31 for the quarter so PE based on the quarter is about 8?

2009 M9 Revenue up about 7% to AED 22.1 billion
Net Profit due to share holders down about 3-4% to AED 6.85 billion
EPS AED 0.95 so PE based on the first 9M is probably close to 8 also.

2008 M9 profit included gain on disposal of shares in an associate of AED 1.78 billion, a significant boost. Exclude that and then the profit for 2009 M9 looks relatively better compared to previous year.

Overall, just from a glance at the Income Statement, and taking into account the increasing number of Du (DU) subscribers, supposed decreasing population in the UAE, probably cutting back of spending on telephone expenses, for Etisalat to show an increase in profit is a decent enough result. Perhaps enough to provide a boost to Abu Dhabi markets tomorrow. I don't know what forecasted earnings were, I presume Reuters and Bloomberg will have a report out soon enough which should include forecasted profits (results were posted about 1420 on ADX website).

There's an additional sheet in the financial statements showing "Total comprehensive income for the period" and a breakdown. No significant differences between reported Net Profit and the TCI.

I was going to barely look at the Balance Sheet and just say Etisalat has pots of cash and nothing to worry about. Just shows you how wrong it can be to make assumptions.

Etisalat has AED 12.9 billion of cash. Yes that's a lot but ...
Trade and other payables amount to AED 20.9 billion. Anybody out there owed money by Etisalat? Don't expect it too soon.
Trade and other receivables amount to AED 7.4 billion so that together with cash covers their short term liabilities (short term loans and borrowings are not significant as far as I can tell).

Still, as it's Etisalat, I wouldn't be too concerned that they won't be able to pay their bills eventually.
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[sharewadi]