Etisalat profits slow after Egyptian launch

Etisalat's profits failed to keep pace with its growth in revenues in the past year, following its expansion into Egypt during 2007.

The Egyptian market has traditionally had much lower profit margins than the two main markets where Etisalat already operates, Saudi Arabia and the UAE.

Etisalat group's net profit in 2007 was AED7.3bn ($2bn), about 25 per cent greater than the AED5.9bn profit in 2006. However, its revenues climbed 31 per cent, from AED16.3bn in 2006 to AED21.3bn in 2007.

As a result, the profit margin for the group fell from 36 per cent in 2006 to 34 per cent in 2007.

Etisalat does not break down the financial performance of its three major subsidiaries.

The Egyptian business, Etisalat Misr, launched in May 2007. It had more than 3 million customers by the end of September 2007, according to Mohammad Hassan Omran, chairman of Etisalat.