Axiom Telecom (AXIOM) is a retail provider of mobile phones, not a telecommunications company such as Etisalat (ETISALAT) or Du (DU), which are listed on the Abu Dhabi and Dubai stock markets respectively (ADSM) and (DFM).
With AED 4.5 billion annual revenue, that makes them smaller than Etisalat although I'm surprised there isn't more of a difference.
Etisalat annual revenue for 2006 probably about 16 billion dhs and profit of 6 billion dhs.
Axiom profit not given but you'd hope they were returning at least 10-20% on sales or about AED 0.5-1 billion per year.
Astounding though isn't it? The population of the UAE is about 4-5 million, and the annual market for mobile phones is over 7 million units . According to this article anyway...
Gulf News 12 January 2007:
Axiom Telecom plans to float shares by 2010
By Saifur Rahman, Business News Editor
Dubai: Axiom Telecom, the UAE's largest telecom handset distributor and retailer with a Dh4.5 billion annual revenue, is likely to float shares by 2010, a top official said.
The company also ruled out the possibility of launching its own branded handset. However, it is looking at manufacturing Axiom-branded accessories.
"Floating shares is on our radar. Currently is under consideration with the shareholders," Faisal Al Bannai, chief executive of Axiom Telecom told Gulf News yesterday.
"However, it might take at least three years to launch the IPO."
He said, Axiom's annual revenue has grown to Dh4.5 billion by the end of 2006, a 28.57 per cent growth compared to Dh3.5 billion in 2005. Tecom Investments, a telecom arm of Dubai Holding, Dubai Government's investment vehicle, acquired a 40 per cent stake in the company in 2005.
The company, the largest mobile handset retailer, controls about 54 per cent of the UAE's 7.2 million handset market, with an estimated value of Dh3.17 billion.
He said, his company, founded in 1997, will spread wings accross the Middle East, Europe and South Asia.
"We have already opened a sales outlet in London last summer. Next month, we will make an announcement on our entry into Iran," he said.
"We will also enter the Indian market this year."
Axiom expanded its retail presence in the region to 200 retail outlets and 363 retail points of presence across the region in 2005. As part of the Al Bannai group of companies, Axiom has the largest after sales service facility in the Middle East handling in excess of 6,000 units per month.
Axiom had over 850 employees by the end of 2005 with a forecast of growing to more than 2000 by the end of 2006. With the expansion, the company will also create great job opportunities for nationals across the Middle East.
He said, there will be a consolidation in the market as those fail to offer value-added services will disappear from the market.
"Axiom offers a total value chain, including distribution, retail, after sale services, value added services and services to the telecom operators," he said.
"This is where we get our strength from. However, smaller players and those who can not offer added benefits, might have to leave the market."
Axiom initial public offering (IPO) is still on the table despite Axiom Telecom announcing this week they'd borrowed US$400 million (AED 1.47 billion) to fund expansion - Axiom wants to become one of the world's largest mobile phone retailers. Not a bad goal, especially for a company that was only set up in 1997 .
The National had a comprehensive article about Axiom following on the the loan news. Summarised below, along with an excerpt...
Faisal al Bannai is the Axiom founder and chief executive.
Axiom moved into India in a joint venture (JV) with Pantaloon, a supermarket and hypermarket chain with 435% revenue growth in the last 4 years. Axiom are setting up mobile phone stalls with Pantaloon in a similar way to what you see them do with Spinneys in the UAE. The UAE has a population of 5 million, India has 1000 million, so there could be some potential for growth there.
Axiom's largest competitor is i2, a Saudi company with 340 retail outlets in the Middle East and Africa. i2 is also aiming to be one of the world's largest mobile phone retailers. i2 revenues in 2007 were $2 bn vs $1.3 bn for Axiom.
The National 19 June 2008:
Axiom nears public listing target
by Tom Gara
The securing of a US$400 million (Dh1.47 billion) syndicated loan by Axiom Telecom moves the mobile telephone retailer a step closer to an initial public offering, the company's founder and chief executive said yesterday.
Mr Bannai founded Axiom in 1997 and Tecom - the Dubai Government's investment vehicle - acquired a 40 per cent stake in the company in 2005. The remaining 60 per cent is held by Mr Bannai and private investors.
Floating the company's stock on a UAE exchange "is definitely on our minds", Mr Bannai said.
...
Axiom Telecom
- Founded in 1997 by Faisal al Bannai
- Employs 2,000 people in the GCC, UK, Egypt and India
- Earned revenues of US$1.3 billion in 2007
- 40 per cent owned by Tecom, a Dubai Government investment vehicle
- Has more than 550 points of sale
- The in-house telecom retailer in Spinneys supermarkets and Emarat service stations
- Exclusive global distributor of Inmarsat satellite phones
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. According to this article anyway...
