EPS continues to slide (-6.7% y/y) on increased Royalties (+11.6% y/y)

Revenues are on the mend (+2.3% q/q, +2.9% y/y) and beat our estimates (+3.2% vs. AC) and the street (+2.9%), yet inline with FY 16e guidance (low single digit growth).EBITDA margin of 44% is above FY 16e guidance of c.41-43%, but continues to lag behind Etisalat domestic margin of c.55%; a situation which is unlikely to change.EPS (-6.7% y/y) is under pressure from increased Royalty charges (+11.6% y/y), but remains above estimates (+8.1% vs. AC, +4.7% vs. consensus).