UAE-based Etisalat, the second-largest telecoms group in the Gulf region, reported an 8.5 percent annual decline in net profit for the first quarter, causing it to miss analysts’ expectations. Net profit came in at AED1.99 billion (US$543 million), below local analyst forecasts of around AED2.16 billion. The operator gave no reason for the decline and did not provide figures for the year earlier quarter (Zawya Dow Jones calculated the decline from previous earnings statements). However, net revenue for the quarter rose 5 percent to AED7.95 billion. The firm’s mobile customer base reached 7.71 million, fixed-line subscribers reached 1.3 million and Internet customers hit 1.38 million.

Despite the underwhelming quarterly results, Etisalat remains on the hunt for acquisitions and licenses to offset slowing growth at home. Etisalat’s chairman Mohammad Omran told Zawya Dow Jones in February that it is studying possible acquisitions in Iraq and Algeria. Other targets are thought to include Vietnam and Syria. The Abu Dhabi-listed firm currently operates in 18 countries. The firm announced separately yesterday that it has acquired an additional 14 percent stake in Tanzania’s Zanzibar Telecom (Zantel) for US$16 million, lifting its total stake in the operator to 65 percent.