Qtel Profits Up 15% on New Services - Impacted by Currency Wobbles

Qatar Telecom (Qtel) has announced a 58% rise in first quarter revenues to reach QAR 5.6 billion while profits rose 15% to reach QAR 604.4 million.

Announcing the results, His Excellency Sheikh Abdullah Bin Saud Al-Thani, Chairman, Qtel, commented: "The Qtel Group continues to deliver positive results for its customers and shareholders, driven by our Group's record of investment in key growth areas as well as prudent and responsible management, and enabled by our solid connection with our customers. Taking into account the changing economic climate, we have consolidated our position in established markets and sought to uncover new efficiencies in order to enhance continuing profit growth."

The drive to consolidate and extract cost and revenue synergies contributed to progress across the Group in Q1 2009. EBITDA has increased 49 percent in the first quarter compared to the same period last year, to stand at QAR 2.7 billion (Q1 2008: QAR 1.8 billion).

Qtel Qatar

The Group's operations in its home nation of Qatar continue to perform strongly, with Qtel Qatar's active customer base closing Q1 2009 24 percent higher than in Q1 2008 at 2.1 million. Revenue continued to grow during the quarter, standing at 31 March 2009 at QAR 1.5 billion, 18 percent higher than at the end of the first quarter of 2008. EBITDA also showed growth, increasing 9 percent over Q1 2008 to stand at QAR 898.7 million.

Indosat

Indosat delivered solid Q1 2009 revenue growth in local currency terms, but down sharply due to currency fluctuations. Revenue for Q1 2009 stands at QAR 1.4 billion, down from the QAR 1.7 billion a year ago. Customer numbers increased over the comparative period last year, standing 26.1 percent higher at the close of Q1 2009 at 33.3 million. EBITDA for Q1 2009 dropped to QAR 704.1 million, from QAR 867.4 million a year ago.

Wataniya Telecom

Wataniya Telecom covers the Qtel Group's presence in Kuwait, Tunisia, Algeria, Kingdom of Saudi Arabia, the Maldives and Palestine. During the first quarter, Wataniya Telecom maintained its profitability, reporting EBITDA for Q1 2009 of QAR 550.4 million - down on the QAR 611.4 million in Q1 2008, and revenue of QAR 1.4 billion (Q1 2008 QAR 1.5 billion). Wataniya Telecom's consolidated active customer base also increased despite increased competition in many markets, particularly Kuwait, by 16 percent year-on-year to close Q1 2009 at 11.5 million.

Asiacell

In Iraq, the Qtel Group operates under the Asiacell brand. Building on its strong performance in 2008, Q1 2009 saw Asiacell continue to grow its customer base from 4.1 million in Q1 2008 to 6.7 million at the close of Q1 2009 In Q1 2009, Asiacell also successfully delivered revenue of QAR 878.5 million, significantly higher than the QAR 545.0 million a year ago. EBITDA growth was also achieved, with EBITDA growing 67% percent year-on-year to close Q1 2009 at QAR 446.7 million.

Nawras Telecom

Nawras, the brand under which the Qtel Group operates in Oman delivered a good performance in Q1 2009, achieving success in growing revenue away from traditional voice services towards higher value services such as roaming and data. Customer numbers in Q1 2009 increased by 37.2 percent to 1.6 million and the Company achieved revenue of QAR 362.7 million, broadly in-line with typical seasonal patterns and an increase on Q1 2008 of 28 percent. Nawras also continued to grow EBITDA in the quarter, delivering an EBITDA increase on Q4 2008 of 41 percent to QAR 147.3 million.

Posted to the site on 22nd April 2009