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Monday 15 August, 2011

Qatar Telecom

Qtel 2011H1 Revenue Grows 16.6% to QAR 15.4 B

RNS Number : 3282M
Qatar Telecom (Q-Tel) Q.S.C.
14 August 2011
 

 Qatar Telecom (Qtel) Q.S.C.

Qtel 1H Revenue Grows 16.6 Percent to QAR 15.4 Billion

 

Please follow the link below to view the Financial Statements;

http://www.rns-pdf.londonstockexchange.com/rns/3282M_-2011-8-14.pdf

 

1H Net Profit Attributable to Qtel Shareholders at QAR 1.4 Billion with Q2 Growth of 18%

 

Doha, Qatar, 14 August 2011: Qatar Telecom Q.S.C. ("Qtel" or "The Qtel Group" or "The Group") (Ticker: QTEL.QA) today announced further positive growth in both revenue and profit during the six-month period ended 30 June 2011, driven by improvements in operations across the Group.

 

Financial Highlights:

 

 

Quarterly Analysis

Half Year Analysis

Q2 2011

Q2 2010

% change

1H 2011

1H 2010

% change

Consolidated Revenue (QAR m)

7,985

6,770

18.0%

15,446

13,244

16.6%

EBITDA (QAR m)

3,654

3,240

12.8%

7,204

6,274

14.8%

EBITDA Margin (%)

46%

48%

-

47%

47%

-

Net Profit Attributable to Qtel Shareholders (QAR m)

673

571

17.9%

1,436

1,784

-19.5%

Normalized Net Profit* Attributable to Qtel Shareholders (QAR m)

673

571

17.9%

1,436

1,230

16.7%

Consolidated Customers (m)

77.5

66.7

16.2%

77.5

66.7

16.2%

 

*Net Profit Attributable to Shareholders in 2010 was positively impacted in Q1 2010 by a one-off favourable decision on the royalty regime in Qatar (QAR 554 million) that included the periods 2007-2009. The figures shown above have been adjusted to allow a more meaningful year-on-year comparison.

 

·     Earnings per share in 1H 2011 were QAR 8.16 (1H 2010: QAR 10.14) and have been adjusted as a result of the issuance of 20% bonus shares in Q1 2011.

 

Operational Highlights:

 

·     Revenue momentum continues in Qatar, driven by increased voice usage and broadband subscribers.

 

·     Impressive performance from the Wataniya Group portfolio with Kuwait and Algeria delivering particularly strong growth while Tunisia demonstrated robust performance in the mobile segment despite a challenging environment.

 

·     Iraq and Indonesia maintained their solid mobile revenue growth.

 

·     Oman remains a highly competitive market; however, the launch of the fixed line business is now having a positive impact on revenues.

 

1H 2011 represents a further positive period of growth and achievement for the Qtel Group. During this period, the Group's priorities remain in-market strategies, driving subscriber growth and service development across its operational footprint.  As a result, the Group has successfully delivered further revenue and profit growth during the first half, with Group revenue increasing by 16.6 percent to end the period at QAR 15,446 million (1H 2010: QAR 13,244 million).

 

As of 30 June 2011 the Group's consolidated customer base stood at 77.5 million (1H 2010: 66.7 million), representing growth in customer numbers of 16.2 percent. The Group's EBITDA for the same period increased 14.8 percent to QAR 7.2 billion (1H 2010: QAR 6.3 billion).  EBITDA margin remained robust throughout the period at 47 percent (1H 2010: 47 percent).

 

Net profit attributable to Qtel Shareholders increased by 16.7 percent when normalized for a one-off favourable decision on the royalty regime in Qatar in 2010 of QAR 554 million. 1H 2011 net profit attributable to Qtel shareholders stood at QAR 1,436 million (1H 2010: 1,784 million).

 

Commenting on the results, His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group said:

 

"In a challenging time, the Qtel Group has again delivered positive financial results, with normalized Net Profit Attributable to Qtel Shareholders growing by 16.7 percent, year-on-year. We believe that this results from our ability to bring the wealth of experience of the Group's staff to bear on our priorities. Our growth is also a result of our willingness to invest in developing markets and to manage those assets with a medium-to-long-term time horizon. That principle is now beginning to bear fruit. Fundamentally the financial results are just a reflection of how we are doing to satisfy and connect with our customers. We believe that we are improving in that respect and our financial results quarter after quarter are showing that."

 

Also commenting on the results Dr. Nasser Marafih, Chief Executive Officer of the Qtel Group said:

 

"One of the key elements of our strategy for growth is that we work hard to achieve and retain leadership positions across the markets we serve. So far this year, we have delivered resilient performances in highly-competitive markets such as Qatar, Kuwait, Iraq and Algeria, demonstrating our capabilities to meet customer demands and exceed their expectations. By balancing innovation with prudent management, we believe that we will continue to maintain our leadership position within our operational markets and within the industry as a whole."

 

Review of Operations

 

The Group's operational performance can be summarized as follows:

 

Qtel - Qatar

 

Qtel's strategy for managing competition and driving innovation in its home market of Qatar delivered strong results in the first-half of the year, with the company maintaining its customer base at 2.4 million (1H 2010: 2.4 million). Revenue remained steady at QAR 2,862 million (1H 2010: QAR 2,838 million) while EBITDA performance during the period showed an increase of 3.0 percent year-on-year to QAR 1,556 million (1H 2010: QAR 1,511 million).

 

The company's ongoing investment in network and infrastructure positioned the company for future growth, with its pioneering Fibre Programme rolling-out throughout neighbourhoods across Qatar and delivering speeds of up to 100 Mbps in the trial phase. This investment was paralleled by the growth of Qtel's Entertainment portfolio, as the company continued to extend the range of new content and programming available across the company's diverse channels. Qtel's investment in new innovations for commercial growth was matched by its support for social and environmental development, through its support for its award-winning e-waste recycling programme, and a move towards 100 percent electronic billing for customers. 

 

With the company's clear strategy for growth and innovation in place, Qtel continues to distinguish itself in a competitive marketplace.

 

Indosat - Indonesia

 

Indosat continues to make progress in implementing its business strategy and has successfully driven significant growth in its subscriber base during the first half of this year.  At the end of 1H 2011 the Indosat subscriber base stood 23.7 percent higher than the comparative period last year, ending the period at 47.6 million subscribers (1H 2010: 38.5 million). This extended subscriber base has continued to result in positive financial performance, with revenue in 1H 2011 increasing 9.3 percent year-on-year to end the period at QAR 4,188 million (1H 2010: QAR 3,830 million).  Positive progress at the EBITDA line was also achieved with EBITDA improving 2.9 percent year-on-year to end 1H 2011 at QAR 1,964 million (1H 2010: QAR 1,909 million). 

 



Wataniya Telecom

 

Wataniya Telecom ("National Mobile Telecommunications Company K. S. C.") encompasses the Qtel Group's businesses in Kuwait, Tunisia, Algeria, Kingdom of Saudi Arabia, the Maldives and Palestine.  The positive traction seen in the first quarter of the year has continued, with particularly strong performances from both Wataniya in Kuwait and Nedjma in Algeria.  In Kuwait, Wataniya has delivered impressive subscriber growth in addition to capitalising on a marked increase in in-country demand for data services.  In Algeria, Nedjma has worked hard to deliver growth both in the number of active subscribers on its network, as well as an increase in its sales to corporate customers.

 

These positive developments here and elsewhere within the Wataniya portfolio have translated into strong financial growth, with Wataniya's consolidated customer base increasing 6.8 percent to end the period at 16.9 million (1H 2010: 15.8 million).  Revenue also strengthened during 1H 2011, advancing 40.7 percent year-on-year to stand at QAR 4,647 million (1H 2010: QAR 3,303 million).  Wataniya also generated a strong EBITDA increase in the period, delivering a year-on-year EBITDA increase of 61.0 percent to stand at QAR 2,050 million (1H 2010: QAR 1,273 million). Part of the increase in revenue and EBITDA was due to the 100 percent consolidation of Tunisiana following the increase in the shareholding from 50 percent to 75 percent.

 

Nawras - Oman

 

Nawras has demonstrated both the continued appeal of its brand and its ability to innovate by offering new services in this first half of 2011 while successfully maintaining its strong market share in what remains a competitive environment.  The Nawras subscriber base held steady during 1H 2011, to close the period at 1.9 million (1H 2010: 2.0 million) and revenue increased by 5.8 percent to QAR 954 million (1H 2010: QAR 901 million). EBITDA saw a slight contraction to QAR 466 million (1H 2010: QAR 487 million). Nawras's ongoing investment in its fixed line business is expected to provide further revenue growth in the future.

 

Asiacell - Iraq

 

Asiacell has continued to demonstrate the strength of its product offering, maintaining impressive levels of customer growth during the period and translating that growth into a robust financial result.  During 1H 2011, the customer base at Asiacell grew a further 7.4 percent to 8.5 million (1H 2010: 7.9 million) as customers continued to respond well to ongoing, targeted promotional campaigns. Revenue in 1H 2011 grew by 17.8 percent, ending the period at QAR 2,831 million (1H 2010: QAR 2,404 million). EBITDA also delivered double-digit growth, increasing 12.4 percent to QAR 1,536 million (1H 2010: QAR 1,366 million).

 

Qtel will publish its 1H 2011 financial statement on its website, accessible at: www.qtel.qa

 

- Ends -

 

About Qtel

 

Qatar Telecom (Qtel) provides a full range of telecommunications services in Qatar and across its presence in 17 countries. Our vision is to be among the top 20 telecommunications companies in the world by 2020 through expansion in both the MENA region and South East Asia.

 

Qatar Telecom (Qtel) Q.S.C. cautions investors that certain statements contained in this document state management's intentions, hopes, beliefs, expectations, or predictions of the future and are thus forward-looking statements. Management wishes to caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected as a result of risks and uncertainties including, but not limited to: Qtel's ability to manage domestic and international growth and maintain a high level of customer service; future sales growth; market acceptance of its product and service offerings; its ability to secure adequate financing or equity capital to fund its operations; network expansion; performance of its network and equipment; its ability to enter into strategic alliances or transactions; cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment; regulatory approval processes; changes in technology; price competition; other market conditions and associated risks.

 

Qtel undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information, or otherwise.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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