[edit] See next post for summary of results (released 29 January 2009) [/edit] [edit] Etisalat dividends proposed by BOD 23 February 2009 [/edit]
Average Etisalat (ETISALAT) profit forecast is about AED 9.46 billion, which means EPS of about AED 1.60, and with current share price of about AED 10.00 that means a PE of 6.2 which sounds like a bargain for a telecom company with the kind of growth Etisalat has - 30% from 2007, and previous years were about 25%, 37%, and 25%.
The National says that half that profit is handed back to the government as Royalties which might imply there's only AED 4.73 billion for shareholders, but as far as I can tell from the financial statements, the Net Profit due to shareholders (of AED 7.3 billion for 2007) is net of royalties - the royalties are taken off the revenue in the Income Statement.
Etisalat is expected to report a 30 per cent rise in profit when it announces its 2008 full-year results later this month.
Despite the slowing world economy and huge outlays to capture new markets, the company became more profitable than ever last year as its international operations began contributing to the bottom line.
The company will report a 2008 net profit of about Dh9.46 billion (US$2.57bn), according to the average estimates of six research analysts tracked by Bloomberg. It made a Dh7.3bn profit in 2007.
Etisalat earned a Dh1.8bn windfall in mid-2008 from the mandatory sale of 20 per cent of its stake in Mobily, its Saudi Arabian network, to Saudi investors. It has expressed interest in becoming the majority owner of Mobily if the opportunity arises. Half of Etisalat’s yearly profits are paid in royalties to the Federal Government, which owns 60 per cent of the publicly traded company. This year’s payment could equate to more than 10 per cent of the federal budget.
In a recent briefing to analysts, the company revealed that its international networks now accounted for almost 10 per cent of total revenues. Its operation in Egypt, which was launched in mid-2007, has become profitable. Operations in Saudi Arabia are also contributing to the bottom line.
But the UAE remains by far the company’s most significant market, continuing to grow despite a mobile penetration rate of almost 200 per cent, meaning that there are two mobile lines for every resident. The company’s dominant position in this small, high-spending market has made it extremely profitable. At the recent analyst briefing it disclosed operating margins of 81 per cent ...
Previous post had a forecast (or average forecast) of AED 9.46 billion. Etisalat missed that by about 8% so I guess the forecasters weren't too far out.
EPS figures calculated from Net Profit / 5,989,500,000 shares outstanding. ETISALAT share price as of 29 Jan 2009 was 10.20 dhs, so 2008 estimated PE is about 10.20 / 0.96 = 10.6, based on Q4 earnings, which looks high compared to many other companies trading at low single figure PEs, but then again, Etisalat is still making money even though Q4 profits fell somewhat. 2008 PE based on FY earnings is 10.20 / 1.45 = 7.1, which is getting closer to the Aldars and Sorouhs of the UAE.
Etisalat shares fell slightly, by 0.5% to AED 10.20 today.
ADX 29 January 2009 (pm):
(ETISALAT) Etisalat discloses annual preliminary financial results for 2008
Average Etisalat (ETISALAT) profit forecast is about AED 9.46 billion, which means EPS of about AED 1.60, and with current share price of about AED 10.00 that means a PE of 6.2 which sounds like a bargain for a telecom company with the kind of growth Etisalat has - 30% from 2007, and previous years were about 25%, 37%, and 25%.
hi
sharewadi
but don,t forget population suppose to decress minimum 10% and peoples not spending much as they spend before,my mob bill become half,my office bill too now when i am calling overseas continue watching my watch but before not
i am feeling qtel is better bet then etisalat if sombody intereted in telecomunication
i already bought
play safe
lala _________________ its my opinion,money is your,s
i believe etisalat profits will further decrease in the upcoming qtr as a result of the establishments needed for the new networking system in iran . The competition is also very strong in egypt and i think it will take some time for the company to be level with the main competators ( mobinil and vodaphone)
Etisalat AGM approves 35% cash dividend for 2H 2008 (25% was distributed in 1H), and 20% share dividend (increased from proposed 10% share dividend as far as I know). Obviously the AGM was 23 March 2009 then - there were two disclosures, one saying AGM on 23 March 2009, the other saying 02 April 2009. Did we mention that Etisalat was in the communications industry? Perhaps we shouldn't have been so quick to blame Reuters for the Etisalat CEO resigning misreporting after all.
08 April 2009 - last trading day for dividend eligibility (unconfirmed)
09 April 2009 - ex-dividend date
12 April 2009 - record date
WAM 23 March 2009:
Etisalat General Assembly Approves Dividends at 35%
Abu Dhabi: The General Assembly of Etisalat (ETISALAT) today approved the recommendation of the Board of Directors to distribute dividends at 35% of nominal share value for the second half of 2008. This makes the total dividend awarded by Etisalat in 2008 to be 60%.
The General Assembly also decided, during its Annual General Meeting, to issue 20% bonus shares (one bonus share for every 5 shares).
The General Assembly of Etisalat also elected 4 new Board of Directors on behalf of the private sector. The new members are: H.E. Khalaf Bin Ahmed Al Otaiba, H.E. Sheikh Ahmed Moh'd Sultan Bin Suroor Al Dhaheri, H.E. Ahmed Bin Eisa Bin Nasser Al Serkal and H.E. Abdul Rahman Hassan Al Rustomani.
Comments from Mr. Mohammed Hassan Omran, Chairman of Etisalat: In 2008 Etisalat has been able to maintain, and in certain spheres improve on, our growth trajectory in terms of financial and operational parameters. We registered 22%. growth in revenue and 19% in our profits against those of the last fiscal year, with our aggregated subscribers crossing 80 million across 17 countries. On a compounded annual growth rate (CAGR), our Group revenue and net profit have both grown by 26%. over the last four years.
I would like to take this opportunity to emphasize the Corporation's sincere gratitude to the leadership and government of the UAE for their continued support of the Corporation, and also compliment them on the astute fiscal and structural macro-economic measures which have been introduced to ensure sustained prosperity and growth in the UAE.
The Corporation has always been selective in its investment approach and will now become even more so. However, we also view this turbulent time as an opportunity in various spheres, asset valuations being just one of them. Driven by our vision of becoming one of the top ten Telecom operators in the World, we continued, albeit carefully, to enhance and consolidate our global footprint over 2008.
We entered India, one of the largest telecommunications markets in the world both in terms of growth and scale. Our commercial launch in India is planned for 2009. Our investment in India complements the other regional investments in Pakistan (PTCL), Afghanistan, and Indonesia, representing one of the fastest-growing markets in the Telecommunication world. The Corporation today possesses a balanced portfolio with investments in West Asia, South Asia, and Africa, with a common denominator of high growth potential.
In reference to our now extensive International portfolio, we altered our strategy, gradually shifting from an acquirer mode to focusing more on operational excellence. In order to manage operations in 17 countries across two continents, we initiated a restructuring within the Corporation to create a corporate umbrella structure, which will work at monitoring and optimising performance and returns, inside and outside the UAE. An initial interim structure has started operating from the beginning of 2009. The key objective will be to optimise the synergies that now exist with a global footprint, and thus ensure that each of these entities reaps the benefits of being part of an extended Etisalat network.
Comments from Mohammad Khalfan Al Qamzi, Chief Executive Officer, Etisalat 2008 has been a landmark year in more ways than one. A year that started with lot of promise saw some truly astonishing, unexpected, and some thoroughly disturbing economic events unfold as it progressed, which made most of us in business management look for the best short- to mid-term strategies to ride over this uncertain economic phase. The year saw our mobile subscribers total cross the 7 million mark An important point to note is that the Corporation continued to grow in an open competitive environment and kept pace with the overall market growth, thus demonstrating the growth potential in the telecommunication sector, which continues to grow faster than the overall GDP growth in the UAE. This also underlines the fact that communication has joined the basic necessities club in the hierarchy of needs in our everyday lives.
I would like to take this opportunity to congratulate all our stakeholders, including all my colleagues who contributed to this result. And I wish to congratulate all those who participated in achieving this success and thank all Etisalat staff for their intensive efforts, This success was largely made possible by our collective effort to re-look at internal processes in pursuing our key objective of continuously creating and delivering value to our customers. We are aware of the high expectations which our customers place on us, and our endeavors during the last year were focused on matching and, wherever possible, exceeding them.
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now when i am calling overseas continue watching my watch but before not 
