4Q2013 operating profit falls YoY despite growth in topline as pressure on yields continues. Total revenue in 4Q2013 grew 8% YoY to AED 811 million (9% lower than forecast and 11% below the
Revenue grew 12% YoY to AED 3.18 billion, while operating profit rose by 5% YoY to AED 344 million with the OPM falling 80 bps YoY to 10.8%. Net profit was broadly flat at AED 421 million (+0.3% YoY).
DPS increases marginally to AED 0.0725 from AED 0.0700 in FY2012, representing a dividend yield of 4.3% on last close. The FY2013 DPS came in higher than forecast of AED 0.061 and implied a dividend payout of 80% (versus 78% in FY2012).
"Prima-facie these results appear weak except the higher-than-expected dividend. The company will host an analysts' conference call tomorrow and we hope to get better clarity on the company's weak financial performance. We believe that the rapidly rising system-wide capacity may be causing a pressure on yields and hence, on the profitability for
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