Indian Costs Weigh Down Etisalat

Posted on Feb 10, 2012 in Emirates-Asia, India

Abu Dhabi based Etisalat, the Middle East’s biggest telecom provider, posted a 4Q downturn of 65% in net profit due to a decision made last week by the Indian Supreme Court. Last week, the Court decided to cancel all mobile-telecom-service licenses issued  in the country without auction after January 2008. The decision raises uncertainty over billions of dollars that Etisalat and others have invested in India in recent years. Etisalat decided to recognize an impairment charge in its 2011 financial statement of AED 3.04 against goodwill. Despite the charge, Etisalat realized a 4Q net profit of $192 million or AED 705 million. That was down from AED2.03 billion from the year before.