4Q18 Results Highlights
Revenue – AED13,034mn, -3% Y-o-Y, -1% Q-o-Q, -1% vs. EFGe
Net profit– AED2,021mn, +3% Y-o-Y, -11% Q-o-Q, -2% vs. EFGe
 
Etisalat Group (Etisalat) reported its 4Q18 preliminary headline numbers, showing total revenue of AED13,043mn and net profit of AED2,021mn; both figures were in line with our estimates, and we believe the results were likely free of surprises. The numbers are unlikely to move the stock, in our view, but a dividend surprise could do so; we forecast a FY18 DPS of AED0.80, which would imply a pay-out of 81% and a yield of 4.7%. The company is yet to disclose its FY18 dividend.
 
Revenue in FY18 grew 1.5% Y-o-Y to AED52,388mn, while net profit was up 2.4% Y-o-Y to AED8,615mn, with management attributing the improvement to international operations and strong performance from the fixed segment, as well as other segments, in the UAE. We await the release of the company’s full financial statements and operating results (expected on 21 Feb 2019) to better assess the quarter’s performance.(Omar Maher, Karim Sherif, company)
 
Etisalat (AD): AED16.96 as of 12 Feb. 2019, Rating: Neutral, TP: AED18.10/share, MCap: USD40,190mn, ETISALAT UH/ETEL.AD