Subscriber growth at UAE telecoms Etisalat and du probably slowed in the fourth quarter, while Saudi Arabia's Mobily may beat analyst forecasts following a strong Haj season, EFG-Hermes predicts. “We continue to believe that MENA telecom stocks will perform relatively well over the next few months, as telecommunications remain one of the sectors least affected by the global economic conditions,” analysts Marise Ananian and Nadine Ghobrial wrote in a note to investors. Fourth quarter earnings at Etisalat are likely to be flat on the quarter, as UAE population and economic growth begins to decelerate. The second largest Arab economy is responsible for 90 percent of the company's revenue. Mobile subscribers in the UAE may have risen to 7.3 million at the end of December, implying a market share of 74 percent and a total mobile penetration of 172 percent. Fixed line subscribers grew to 1.38 million, implying a market share of 84 percent, EFG-Hermes said. The investment bank is forecasting a 28.2 percent rise in full year net income to AED9.35 billion ($2.5 billion) on net revenue that rose 20.7 percent to AED25.76 million ($7 billion). Rival du is estimated to have had 3.05 million subscribers, of which around 2.3 million were active, by the end of December, implying a market share of around 26 percent. Revenue is expected to have grown by 8. 6 percent on the quarter, boosted by strong mobile revenue growth.
