Etisalat’s operating expenses amount to AED 34.6 billion in 2016
The total operating expenses of Emirates Telecommunications Group Company PJSC, Etisalat, amounted to AED 34.6 billion from AED 32.75 billion last year. The 5.6 percent growth, which excludes the royalty fees to the Federal Government , comes on the back of tremendous business development and strong performance by the Group in 18 markets across the world.
The group’s total operating profits rose to AED11.4 billion, with net profits increasing by 2 percent, compared to the previous year, to reach AED 8.4 billion. The earnings per share rose to AED 1.02.
As per the company’s financial statements, AED 11.6 billion of direct sale transactions were conducted in 2016, accounting for 33.5 percent of the total operating expenditure, while the consumption value reached AED5.7 billion during the same period.
Employee payroll was AED 5.17 billion by end of December from 5.4 billion by end of 2015. Etisalat’s network and other related expenses hit AED 2.88 billion. Organisational and marketing costs reached AED 2.55 billon, and offsetting losses stood at AED 1.67, with the remaining costs divided over operating rentals, exchange losses and other operating expenses.
According to the financial statements, Etisalat considers the government’s concession fees, which totaled AED5 billion in 2016, as an operating expense in its profit and loss statement on the basis that the expenses that should be borne by the company as a result of using the federal government’s facilities will have to considered as operating costs.
Etisalat’s shareholders on 9th April approved the board’s recommendation to pay full 2016 dividends of 80 fils per share during the annual general meeting.
