EPS figures calculated from Net Profit / 5,989,500,000 shares outstanding.
ETISALAT share price as of 18 Oct 2008 was 14.85 dhs, so 2008 estimated PE is about 14.85 / 1.40 = 10.6, based on Q3 earnings, which is close to the average market PE of about 10. 2008 PE estimate based on M9 earnings is 14.85 / 1.63 = 9.1, which is a little lower. If it wasn't for a financial crisis, you'd say Etisalat shares looked cheap, but quarterly profit figures actually fell from Q2 to Q3 in 2008. Still, for long term investors, Etisalat at current prices could probably be seen as an opportunity. Even if UAE banks start to fail (which is unlikely), I don't see Etisalat as crumbling away just yet.
Summary information and analysis based on limited information in press release (see next post). There also appears to be an error, unless Etisalat has written down a substantial amount.
"Total assets recorded were 32.5 billion an increase of 26 % (AED 6.6 billion) compared to last quarter 3 2007."
Total assets at the end of 2007 were AED 52.5 billion, and at the end of June 2008 were AED 60 billion. A fall of almost 50% in total assets over 3 months for a profitable monopoly (almost) telecoms company seems very unlikely, even in the current financial meltdown. Typically for a UAE company, Etisalat haven't released their Balance Sheet so I can't check, but my guess is they meant to say "Shareholder's Equity" .
Note that Etisalat share ownership is restricted to UAE nationals only (I'm not sure about GCC nationals - possibly).
Etisalat results blah blah blah .... the usual from a UAE company press release. However, as press releases go, I suppose it's ok - the list of significant events at the end is handy, and it does summarise other important news reasonably well. But I think investors, especially in these "sky is falling" times, would very much like to see a balance sheet and income statement. Even more especially because Etisalat appears to have lost AED 30 billion. Maybe it's behind the sofa ?
Press Release 18 October 2008:
Etisalat Announces 3rd Quarter Results
Regional Telecoms Giant Reports Net Profits of Dh. 7.3 Billion and Net Revenues of Dh.19.1
Abu Dhabi - Etisalat (ETISALAT) today announced its consolidated financial results for the third quarter of 2008. The results showed a significant growth in revenues, profits and subscriber numbers. The company reported AED 2.1 billion in group net profits for the third quarter - an increase of 19 % on 2007 figures. This takes net profits for the first nine months of 2008 to Dh. 7.3 billion.
Etisalat recorded net revenues of AED 6.6 billion for the third quarter of 2008 and AED 19.1 billion in total for the first nine months of the year. This shows an increase of 24%, compared to the third quarter of 2007 1.3 billion). Total assets recorded were 32.5 billion an increase of 26% (AED 6.6 billion) compared to last quarter 3 2007. Profits per share for the first 9 months increased to reach AED 1.21 against AED 0.92 for the same period in 2007.
Etisalat announced its acquisition of 45% of "Swan Telecom", which will provide services in India. This takes Etisalat's geographical reach to 18 countries in Africa, Asia and the Middle East, covering a population of approximately 1.6 billion.
"The growth rates Etisalat has achieved in both financial and operational terms reflect the high levels of efficiency and performance at all levels of its management. This has helped us to become one of the largest regional and international operators. Etisalat has succeeded in sustaining our financial growth and technical leadership thanks to our commitment to world class standards in all areas of our business," said H.E. Mohammad Hassan Omran, Chairman of Etisalat.
"Our acquisition in India has opened yet another key market, which will help power Etisalat's growth. We are also delighted to have received our first ratings from Moody's, Standard & Poor's and Fitch Ratings - which places us in a very strong position to continue our international expansion," added H.E. Mohammad Hassan Omran, Chairman of Etisalat.
Mohammad Al Qamzi, Chief Executive Officer at Etisalat, said: "Mobile subscriptions in the UAE have now exceeded (7.05 million number) showing an increase of (11 %) compared to the third quarter of 2007, fixed line subscriptions reached (1.36 million), while internet subscribers reached (1.08 million). These tremendous results come in line with Etisalat's endeavor in providing latest and best technologies that match its customers' needs."
In the third quarter of 2008, Etisalat has announced many new products, services and initiatives including:
An agreement with BT and Khalifa University for Science, Technology and Research to establish the Etisalat-BT Innovation Lab in Abu Dhabi.
The launch of BlackBerry Bold - Etisalat is the first operator in the Middle East to introduce the productivity tool; and the launch of a special BlackBerry applications portal
Launch of global interconnect and voice trading platform named E-Globe Interconnect from Etisalat Carrier & Wholesale services
Launch of 3.5G wireless USB modem, the E170
Etisalat received inaugural ratings from Moody's (Aa2), Standard & Poor's (A+) and Fitch Ratings (AA-)
Launch of E-Support software to support home Internet users with answers to common problems
Reach Entertainment campaign to promote the use of multimedia services
Total assets recorded were 32.5 billion an increase of 26% (AED 6.6 billion) compared to last quarter 3 2007.
Etisalat financial statements are available on ADX website now. Here's what they say (as best as I can make out):
Total Assets: AED 59.06 billion
Shareholders Equity: AED 32.46 billion
A sloppy error but perhaps not that surprising though. The largest UAE company by market capitalization still doesn't produce clearly legible statements, and hasn't properly figured out how to use email - I asked for statements and press release yesterday, no reply received yet (especially ironic since Etisalat are the main ISP in the UAE).
And of course, all the press release distributors are merrily reporting the original incorrect information, which probably says more about how uninterested people are, than anything else. I've not seen any questions raised anywhere else...
... unless I've made an error . Hopefully someone will point it out to me, then I can go and have some humble pie for lunch .
In the meantime, what Etisalat are doing successfully is blocking Arab news websites - there was a report this morning that the TRA has requested that Etisalat unblock the Arab Times website. Presumably they mean the US based Arab Times (arabtimes.com is blocked), not the Kuwait one (arabtimesonline.com is not blocked). _________________ UAE IPO list | posting guidelines
Update to previous comment - it was the Kuwait Arab Times that was blocked according to The National. The USA Arab Times is blocked because it has controversial commentary about the Middle East. _________________ UAE IPO list | posting guidelines
I don't see how they could post any losses LOL. They have no competition so every year their profits can only go up until they start allowing some competition.
Sarcasm: If my shop was the only one allowed to sell jewelry here in Taiwan I am sure I could post 17% profit gains every year Although I could allow one more person to sell provided he bought his jewelry from me. _________________ Please read forum rules
Last edited by stylinexpat on Sun 19 Oct 2008 16:09; edited 1 time in total
Update to previous comment - it was the Kuwait Arab Times that was blocked according to The National. The USA Arab Times is blocked because it has controversial commentary about the Middle East.
Sarcasm: You don't work for Etisalat Sharewadi, do you? _________________ Please read forum rules
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. Hopefully someone will point it out to me, then I can go and have some humble pie for lunch 
.
Although I could allow one more person to sell provided he bought his jewelry from me. 