Etisalat announced lacklustre results for the second quarter of 2011, failing to meet analysts’ expectations. For the three months to 30 June 2011, it reported a profit of AED1.59 billion (US$433 million), down from AED1.87 billion, on revenue of AED7.93 billion, down from AED8.05 billion year-on-year.  According to Bloomberg, analysts had forecast that the company would report a profit of AED1.86 billion – its reported numbers fall some way short of this. The company has been facing increasing competition in its home market from new-entrant du, leading it to look further into international markets. A move to buy a 46 percent stake of Middle East operator group Zain fell-through earlier this year, which Etisalat attributed to “the results of extensive due diligence procedures, the current political unrest in the Middle East and other factors.”

The company also made some references to its ongoing woes in India, although it did not comment on a dispute with partner DB Group, which it previously branded “cynical.” Etisalat noted that, this year, it had received “show cause” notices from India’s Department of Telecommunications, for its Etisalat DB affiliate’s failure to meet first-year rollout obligations in two operating circles. It said that it had filed its response to this, and is “awaiting a personal hearing from the DoT.” It also noted that India’s Central Bureau of Investigation has filed a charge sheet “alleging certain irregularities” when a licence was granted to Swan Telecom, the business that became Etisalat DB. The management of the Indian business said they are “currently scrutinising documents related to these charges and attending related court proceedings.”