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Etisalat mulling restructuring, outsourcing to shed OPEX
Wednesday, 22 February 2012 06:04

Emirates Telecommunications Corp., better known as Etisalat, Monday revealed it’s contemplating restructuring and outsourcing as a ploy to reduce its operating expenses in the face of lower revenue.Etisalat's group CEO Ahmad Abdulkarim Julfar said in an e-mailed statement "These suggestions aim to enable Etisalat to cope with the pace of development witnessed in the ICT sectors and face financial challenges that telecom providers across the world, including Etisalat, are facing."  "Competition and drop in prices across the region has made it difficult for telecom service providers to maintain revenue levels, especially in emerging markets," he stated further. Etisalat's board also suggested a 2011 dividend of 60% of the face value of its shares, or 0.60 UAE dirham/share. On February 9 the telco posted a 65% drop in its Q4 net profit as a heavy impairment charge related to its Indian operations affected its earnings. Etisalat's net profit has been falling for a couple of successive quarters, with its local operations, which make up approximately 70% of its overall revenues, being pressured after it lost its monopoly to Du, its local competitor.

 

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