Tuesday, 21 April 2009

Slowdown bites, but Etisalat still profits

Etisalat has reported a Dh2.18 billion (US$594 million) profit in the first quarter of this year, up by 4 per cent from the same period last year, with its core mobile business feeling the effects of an economic slowdown that its chairman said “no sector is immune to”.

The impact of a slowing economy was seen most clearly in new mobile subscriber numbers. After adding 250,000 new mobile users in the final three months of last year, the company added just 41,000 in the latest quarter, a number lower even than its 52,000 new fixed-line internet users.

The results were in line with the predictions of industry analysts, who expect lower new subscriber numbers this year for both Etisalat and its competitor, du. A shrinking UAE population and a slowdown in leisure and business tourism will hit the sector, analysts say.

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