Report
EUR 9.36 For Business Accounts Only

Etisalat Q3 2016 review

​In line operational performance, but EPS misses estimates on one-offs.


  • ​Revenue growth is above the guidance, which was upped to +2% y/y for FY 16e. 
  • EBITDA margins are flat y/y at 51.5%; the guidance for FY16e was increased from 48-50% to 50%.
  • Adjusted for one-off losses of AED 349m (on disposal of Canar asset in Sudan), EPS is +2.8% above consensus (vs. -13% on unadjusted EPS).
  • Potential double-digit Q4 16e EPS decline on unlikelihood of UAE margin recovery, and potential one-off impairments in Egypt and Nigeria that are booked once a year.



Underlying
ETISALAT

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

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