|
Report Date : |
29.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
EMIRATES TELECOMMUNICATIONS CORPORATION
(ETISALAT) |
|
|
|
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Registered Office : |
Etisalat Building, Level 16, Sheikh Rashid Bin Saeed Al Maktoum
Street, Abu Dhabi |
|
|
|
|
Country : |
United Arab Emirates |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
01.09.1976 |
|
|
|
|
Legal Form : |
Public Joint Stock Company |
|
|
|
|
Line of Business : |
Providers of telecommunication services. |
|
|
|
|
No. of Employees : |
5,500 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
United Arab Emirates - ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income and a sizable annual trade surplus. Successful efforts at economic diversification have reduced the portion of GDP based on oil and gas output to 25%. Since the discovery of oil in the UAE more than 30 years ago, the UAE has undergone a profound transformation from an impoverished region of small desert principalities to a modern state with a high standard of living. The government has increased spending on job creation and infrastructure expansion and is opening up utilities to greater private sector involvement. In April 2004, the UAE signed a Trade and Investment Framework Agreement with Washington and in November 2004 agreed to undertake negotiations toward a Free Trade Agreement with the US, however, those talks have not moved forward. The country's Free Trade Zones - offering 100% foreign ownership and zero taxes - are helping to attract foreign investors. The global financial crisis, tight international credit, and deflated asset prices constricted the economy in 2009. UAE authorities tried to blunt the crisis by increasing spending and boosting liquidity in the banking sector. The crisis hit Dubai hardest, as it was heavily exposed to depressed real estate prices. Dubai lacked sufficient cash to meet its debt obligations, prompting global concern about its solvency. The UAE Central Bank and Abu Dhabi-based banks bought the largest shares. In December 2009 Dubai received an additional $10 billion loan from the emirate of Abu Dhabi. The economy is expected to continue a slow rebound. Dependence on oil, a large expatriate workforce, and growing inflation pressures are significant long-term challenges. The UAE''s strategic plan for the next few years focuses on diversification and creating more opportunities for nationals through improved education and increased private sector employment.
|
Source : CIA |
Company Name :
EMIRATES TELECOMMUNICATIONS CORPORATION (ETISALAT)
Country of Origin :
Abu Dhabi, United Arab Emirates
Legal Form :
Public Joint Stock Company
Registration Date :
1st September 1976
Issued Capital :
UAE Dh 7,906,140,000
Paid up Capital :
UAE Dh 7,906,140,000
Total Workforce :
5,500
Activities :
Providers of telecommunication services.
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
EMIRATES TELECOMMUNICATIONS CORPORATION (ETISALAT)
Registered &
Physical Address
Building : Etisalat
Building, Level 16
Street : Sheikh
Rashid Bin Saeed Al Maktoum Street
PO Box :
3838 & 300
Town : Abu Dhabi
Country : United Arab Emirates
Telephone : (971-2) 6283333
/ 6333111
Facsimile : (971-2)
6317000 / 6324499
Email : custserv@emirates.net.ae
Premises
Subject operates from a large suite of offices that are owned and
located in the Central Business Area of Abu Dhabi.
Branch Office (s)
Location Description
PO Box: 1150 Office
premises
Dubai
Tel: (971-4) 2228111
Fax: (971-4) 2282238
PO Box: 1112 Office
premises
Al Ain
Tel: (971-3) 7222000
Fax: (971-3) 7222111
PO Box: 980 Office
premises
Sharjah
Tel: (971-6) 5611111
Fax: (971-6) 5611114
PO Box: 40 Office
premises
Ajman
Tel: (971-6) 7470007
Fax: (971-6) 7400004
PO Box: 17 Office
premises
Umm Al Quwain
Tel: (971-6) 7656559
Fax: (971-6) 7650900
PO Box: 245 Office
premises
Ras Al Khaimah
Tel: (971-7) 2281111
Fax: (971-7) 2275559
PO Box: 14 Office
premises
Fujairah
Tel: (971-9) 2242222
Fax: (971-9) 2232525
Name Position
Board of Directors
HE Mohamed Hassan Omran Chairman
HE Khalaf Bin Ahmed Al Otaiba Vice
Chairman
HE Mubarak Rashed Al Mansouri Director
HE Sheikh Ahmed Mohamed Sultan Bin Suroor Al Dhaheri Director
HE Hamad Mohamed Al Hur Al Suwaidi Director
HE Saeed Mubarak Rashid Al Hajeri Director
HE Dr Omar Mohamed Bin Sulaiman Director
HE Abdul Rahman Al Rostomani Director
HE Saeed Mohamed Al Sharid Director
HE Omar Saif Mohamed Bin Huraiz Director
HE Ahmed Bin Eisa Bin Nasser Alserkal Director
Management Team
Nasser Bin Obood Chief
Executive Officer
Ali Salim Al Owais Engineering Manager
A Quadeer Farooqi Corporate
Marketing Manager
Ali Al Sharid Finance
Manager
B Z Burney Publications
Manager
Andrew Simpson Marketing
Manager
Ahmad Bin Byat Branch Manager - Dubai
Date of Establishment : 1st
September 1976
History : Subject was
originally established in 1976 under the name of “Emirates
Telecommunications Corporation (EMIRTEL)”, however it was incorporated
in July 1984 by Emiri Decree under the
current name and the current legal status.
Legal Form : Public Joint Stock
Company
Issued Capital : UAE Dh 7,906,140,000
Paid up Capital : UAE Dh 7,906,140,000
Name of
Shareholder (s) Percentage
Government of the UAE 60%
Private investors and members of the general public 40%
Name Percentage Held
Emirates Telecommunications & Marine Services FZE 100%
Jebel Ali Free Zone
PO Box: 17422
Dubai
Tel: (971-4) 8814433
Fax: (971-4) 8814422
Email: etmarine@emirates.net.ae
Emirates Cable TV and Multimedia LLC 100%
Dubai
E Marine PJSC 100%
Dubai
EDCH FZE 100%
Dubai
Etisalat Services FZE 100%
Dubai
Etisalat Services Holding LLC 100%
Abu Dhabi
Etisalat Software Solutions (Private) Ltd 100%
India
Etisalat International Nigeria Ltd 100%
Dubai
Etisalat International Indonesia Ltd 100%
Dubai
Etisalat Afghanistan 100%
Afghanistan
Atlantique Telecom SA 100%
Cote d’Ivoire
Etisalat Benin 100%
Benin
Etisalat Lanka (Pvt) Ltd 100%
Sri Lanka
Etisalat International Pakistan LLC 90%
Dubai
Canar Telecommunications Co Ltd 89%
Sudan
Etisalat Misr SAE 66%
Egypt
Zanzibar Telecom Ltd 65%
Tanzania
Etisalat DB Telecom Private Ltd 44.7%
Emerging Markets Telecommunications Services Ltd 40%
Nigeria
Thuraya Telecommunications Company PJSC
28%
Dubai
Etihad Etisalat Company 27%
Saudi Arabia
Pakistan Telecommunication Company Ltd 26%
Pakistan
PT XL Axiata TBK 13%
Indonesia
Activities: Subject has the sole right to provide national and international public
telecommunication services in the United Arab Emirates, including local and
long distance telephones, cellular mobile phones, data communications, radio
paging, facsimile, telegram, telex, electronic fund transfer systems, pay
telephone services and Integrated Services Digital Network (ISDN) services.
The Corporation offers fixed line services over the Next Generation
Network, and has been migrating sections of its users onto the advanced
network. By establishing NGN, Etisalat will be able to offer voice, video and
data over one single source, enabling true Triple-Play functionality.
Etisalat has over 1.285 million working lines all over the UAE, with
switching capacity of one million and it
supports 225 telephone exchanges. It offers International Direct
Dialling (IDD) to 255 countries.
Mobile subscribers exceeded 6.2 million by the end of 2008. This
represents penetration of nearly 100 percent, a remarkable figure regionally
and internationally. Internet and broadband penetration also witnessed huge
growth during 2006-2009.
By the end of 2008, subject had over 7 million mobile subscribers and
1.3 million fixed line subscribers.
Import Countries: Worldwide
Operating Trend: Steady
Subject has a workforce of approximately 5,500 employees.
Financial highlights provided by local sources are given below:
Currency: United Arab Emirates Dirham (UAE Dh 000’s)
Consolidated Balance Sheet 31/12/11 31/12/10 31/12/09
Non-current assets
Goodwill 1,872,893 3,120,704 3,127,914
Other intangible assets 10,277,623 12,429,597 13,650,474
Property, plant and equipment 20,613,995 20,675,359 17,585,386
Investment property 42,775 47,910 162,800
Investments in associates and joint ventures 16,999,448 16,165,069 15,722,411
Other investments 364,806 517,140 493,507
Advances to associates - - 912,275
Loans to associates 2,953,472 2,963,422 -
Finance lease receivables - 12,673 24,753
Deferred tax assets 303,814 361,465 136,491
53,428,826 56,293,339 51,816,011
Current assets
Inventories 345,219 316,261 272,410
Trade and other receivables 8,732,715 8,448,082 7,638,302
Due from associates and joint ventures 308,712 260,624 331,173
Finance lease receivables 12,673 12,080 11,515
Cash and cash equivalents 9,971,647 10,276,744 11,309,185
19,462,816 19,313,791 19,562,585
Total assets 72,891,642 75,607,130 71,378,596
Current liabilities
Trade and other payables 17,944,597 20,078,214 19,389,237
Borrowings 2,435,092 1,195,071 1,079,387
Payables related to investments and licences 2,967,240 2,956,017 2,902,961
Finance lease obligations 59,261 66,725 56,709
Provisions 778,494 181,961 60,086
24,184,684 24,477,988 23,488,380
Non-current liabilities
Trade and other payables 651,802 1,089,769 2,118,289
Borrowings 4,260,919 5,204,599 3,421,704
Payables related to investments and licences - 19,841 42,318
Derivative financial instruments 354,861 382,145 333,134
Deferred tax liabilities 672,602 772,499 538,464
Finance lease obligations 55,006 172,137 124,781
Provisions 179,906 88,544 39,894
Provision for end of service benefits 828,011 834,283 882,334
7,003,107 8,563,817 7,500,918
Total liabilities 31,187,791 33,041,805 30,989,298
Net assets 41,703,851 42,565,325 40,389,298
Equity
Share capital 7,906,140 7,906,140 7,187,400
Reserves 28,686,726 28,036,163 26,636,679
Retained earnings
2,786,813 2,773,622 2,567,530
Equity attributable to the equity holders of
the Corporation 39,379,679 38,715,925 36,391,609
Non-controlling interests 2,324,172 3,849,400 3,997,689
Total equity 41,703,851 42,565,325 40,389,298
Consolidated Income Statement
Revenue 32,241,873 31,929,488 31,334,387
Operating expenses (19,964,444) (18,545,525) (14,365,129)
Impairment losses (3,044,064 -
-
Share of results of associates and joint
ventures 1,208,472 1,243,229 682,051
Operating profit before federal royalty 10,441,837 14,627,192 17,651,309
Federal royalty (5,839,019) (7,630,750) (8,836,346)
Operating profit 4,602,818 6,996,442 8,814,963
Finance income 696,057 917,578 583,055
Finance costs (663,375) (384,836) (571,493)
Profit before tax 4,635,500 7,529,184 8,826,525
Taxation (25,352) (100,406) (243,792)
Profit for the year 4,610,148 7,428,778 8,582,733
Non-controlling interests (1,228,871) 201,972 253,613
Profit for the year attributable to the
equity
holders of the Corporation 4,610,148 7,630,750 8,836,346
Local sources consider subject’s financial condition to be Good.
National Bank of Abu Dhabi
Sheikh Khalifa Street
PO Box: 4
Abu Dhabi
Tel: (971-2) 345777 / 327113 / 335262
Fax: (971-2) 336078
National Bank of Dubai (NBD)
Estiqlal Street
PO Box: 386
Abu Dhabi
Tel: (971-2) 330611
HSBC Bank Middle East
PO Box: 242
Abu Dhabi
Tel: (971-2) 8004440 / 6147259
Fax: (971-2) 331564
No complaints regarding subject’s payments have been reported.
Etisalat is a leading telecommunications corporation catering to
consumers, businesses, international telecommunication companies, ISPs, content
providers and mobile operators. Headquartered in Abu Dhabi, UAE, Etisalat is
the largest operator in the Middle East and Africa regions with a market value
in excess of AED 80 billion (US$20 billion) and annual revenues of
approximately AED 30 billion (US$8 billion). Etisalat has one of the highest
credit ratings for a telecommunications corporation in America, The Middle East
and Africa and is the second highest rated telecom company globally on the
Fitch rating scale and fourth highest on S&P and Moodys’ rating. Etisalat
operates in 18 countries across Asia, the Middle East and Africa, a coverage
area which reaches more than two billion people. To date, the group’s global
subscriber base exceeds over 140 million subscribers through mobile and
Landline voice and data services. In December 2010, Etisalat UAE received the
Comms MEA awards for ‘Overall Operator of the Year’ and ‘ISP of the Year’.
Etisalat Group received awards of ‘Best African Operator’ for Etisalat Misr
(Egypt), while Mobily (Etihad Etisalat) won ‘Middle East Operator of the Year’.
Etisalat UAE is pioneering the launch of the first commercial 4G service on its
nation-wide LTE network and promises to deliver a compelling mobile broadband
experience to customers.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.89 |
|
|
1 |
Rs.84.92 |
|
Euro |
1 |
Rs.72.51 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.