Emirates Telecommunications Corp reported a first-quarter profit of AED1.82 billion ($496 million), down from AED1.99 billion in the year-earlier period.

Analysts polled by Reuters had expected the firm to post a quarterly profit of AED1.99 billion.

Etisalat had 7.43 million mobile subscribers, 1.13 million fixed line subscribers and 0.49 million internet subscribers by March-end, the firm said in a statement on the Abu Dhabi bourse.

Revenues climbed 2.1 percent to AED8.04 billion, but operating expenses increased at a faster rate, rising 11.3 percent.

In March, Etisalat withdrew plans to bid for Syria’s third mobile licence, saying the terms did not offer sufficient value for shareholders, while earlier last month it also scrapped a $12 billion takeover of Kuwait’s Zain.

Etisalat shares closed up 0.5 percent on the Abu Dhabi bourse prior to the results.