Etisalat reported strong figures for the first quarter, noting its “ability to sustain momentum in spite of vastly changing global industry trends”.

Saleh Al Abdooli, group CEO (pictured), said: “Etisalat has continued its efforts to align its business with the digital mandate it has undertaken, by shifting the operating model, investing in future technologies, and by acquiring and disseminating digital capabilities across its operations.”

The company reported a Q1 2017 net profit after federal royalty of AED2.1 billion ($571.7 million), up 5 per cent year-on-year, on revenue of AED12.5 billion, down 3 per cent. It said its revenue was impacted by unfavourable exchange movements, mainly in Egypt. In constant currency, revenue growth was 3 per cent.

Revenue in UAE, Etisalat’s home market, increased 5 per cent to AED7.6 billion, as a result of growth in the subscriber base with increased bundles, strong performance in the “eLife” segment, and increased business solutions, digital and ICT services.

For international consolidated operations, revenue fell 14 per cent to AED4.7 billion, with the company citing the Egyptian exchange issues, and competitive pressure in Morocco (in the mobile market) and Pakistan (fixed line) for the drop. International operations represented 38 per cent of group revenue.

Operating expenses of AED7.9 billion were down 5 per cent year-on-year, which was attributed to lower depreciation and amortisation expenses, lower network costs, and other reductions.

Etisalat’s aggregate subscriber base stood at 159 million by end Q1, a year-on-year decline of 3 per cent, due to disconnections related to regulatory registration requirements in various markets.