Etisalat's profits down 40% in Q2

UAE telecom group hit by losses from foreign exchange and Mobily
Etisalat is based in Abu Dhabi and operates in 19 countries in the Middle East, Africa and Asia.
Etisalat is based in Abu Dhabi and operates in 19 countries in the Middle East, Africa and Asia.

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The UAE’s Etisalat Group posted a net profit of AED1.5 billion ($408.4 million) in the three months to June 30, marking a 40% decline compared to the same period last year.

Revenues for the second quarter reached AED13.3 billion, an increase of 6% year-on-year.

The company attributed the decline in profits to losses at its Saudi Arabian unit Mobily and foreign exchange losses.

Ahmed Julfar, group CEO, Etisalat, said the decline in profit was due to: “higher depreciation and amortisation charges, the impact of Mobily’s additional provision for accounts receivables , higher net finance costs and incurring forex losses during the period against forex gains in the same period last year.”

In June, Mobily reported that accounting changes would raise its 2014 loss by about 830 million riyals ($221 million) to 1.745 billion riyals.

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