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Wataniya Telecom Posts Decline in Profits On Currency and Impairment Costs
Published on:
Kuwait based Wataniya Telecom has reported that its fourth-quarter revenues fell slightly to KD183.4 million, while net profit was down by 26% to KD12.6 million.
However, the total customer base increased to 19.2 million at the close of 2012, versus 17.8 million at the same period in 2011, amounting to growth of 7.8%.
Revenues for the full year reached KD 742.5 million (US$2.64 billion), compared with KD 726.6 million in 2011, amounting to growth of 2.2%.
Net profit for the full year fell to KD 75.5 million (US$268.5 million), compared to KD 362.1 million (USD 1.29 billion) in 2011. Net profit for 2011 was boosted by a one-off gain of KD 265.3 million due to revaluation of existing held interest in Tunisiana following the increase in the shareholding from 50% to 75%.
Net Profit for 2012 was also adversely impacted by various factors including competitive pressure in Kuwait, foreign exchange movements in Algeria and Tunisia and an impairment charge for a Build-Operate-Transfer ("BOT") operation in 2012.
H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Chairman of Wataniya Telecom commented: "While operationally during this period, Wataniya Telecom has seen stable revenue growth of 2.2%, foreign exchange impacts again impacted profitability and competitive dynamics in Kuwait remain challenging. I look forward to 2013 as efforts already underway in our markets will begin to drive positive and sustainable results for Wataniya Telecom."
Tags: [wataniya telecom] [Kuwait]
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