DUBAI, July 14: Emirates Telecommunications Corp (Etisalat) posted a 58 per cent jump in second-quarter profit on Monday, boosted by the sale of a stake in its Saudi affiliate.

Etisalat, the largest Arab telecom firm by market value, said profit attributable to shareholders rose to 3 billion dirhams ($817 million) in the three months to June 30 from 1.89 billion dirhams a year earlier.

That beat two of three forecasts from analysts polled by Reuters last month, which ranged from 2.03 billion dirhams to 3.09 billion dirhams. The company sold part of its stake in Etihad Etisalat (Mobily) in April, reducing its shareholding in Saudi Arabia’s second mobile phone operator to 26.25 per cent from 35 per cent.

“The sale of a stake in Mobily has generated an exceptional profit in the second quarter,” Etisalat Chairman Mohammed Omran told Reuters.

Profit from the Mobily stake sale was 1.78 billion dirhams, Etisalat said.Earnings per share rose to 0.50 dirham from 0.32 dirham a year earlier, Etisalat said, adding it made more money from new and current subscribers.

Its revenue rose 21.5 percent to 6.38 billion dirhams in the second quarter, Etisalat said.

Etisalat, which has been expanding abroad as it faces new competition at home, said total profit excluding minority interests was 2.84 billion dirhams compared with 1.73 billion dirhams a year earlier.

In addition to its Saudi operation, Etisalat owns a majority stake in Egypt’s third mobile phone company and has stakes in operators in countries including Pakistan and Indonesia.

The company’s shares rose 1 per cent on Monday before the earnings statement, which came after trading closed. They have underperformed the Abu Dhabi index, which is up almost 9 per cent this year.—Reuters