Etisalat Group, which operates in 17 countries in the ME, Africa and Asia has proposed a 60% dividend for 2011. It also mentioned that the board has discussed restructuring and outsourcing options.
Earlier in February, Etisalat reported that its net profit had fallen 24% to AED5.8b ($1.6b). It attributed a part of this decline to losses incurred by its Indian affiliate, Etisalat DB after its license was cancelled.
Etisalat has also reported falling profits in seven of the last eight quarters as earnings from foreign operations fall short of making up for the dwindling home revenue. This decline has mainly been attributed to price competition with du and the ‘illegal’ use of VoIP services for making international calls.
Nearly 75% of Etisalat’s revenue is harvested from its domestic operations, however its W. African subsidiary Atlantique Telecom and Egypt’s Etisalat Misr recorded a 40% rise in subscribers last year.
Etisalat ended 2011 with a net cash balance of AED3.3b ($898m).