Achieving a “turnaround” in the business and delivering “real improvements” in financial and operational performance, Vodafone Qatar has posted a net profit (excluding amortisation) of QR134mn in 12 months up to March, an improvement of QR196mn from losses last year.
The telecom major’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) stood at QR537mn in March, an increase of 34% year-on-year.
The company registered a free cash flow at QR116mn in the period under review, “an improvement of QR250mn” year-on-year.
On the results, Vodafone Qatar’s chief executive officer Ian Gray said, “This has been an important year for Vodafone Qatar. We have achieved a turnaround in the business and delivered real improvements in financial and operational performance. Notably, the superior quality of our network was substantiated by independent technical network audit and our world-class customer service is reflected in our positive customer satisfaction results.”
Vodafone’s EBITDA increased significantly by 34% year-on-year to QR537mn “supported by gains in the post-paid market share, a better mix of higher margin revenues and the success of new innovative products introduced to the market.”
This was coupled with strong cost control following on from the restructuring of the business and a 10% reduction in overall headcount in the first quarter.
Although total revenues decreased by 2.9%, due to a shift away from lower margin business and reduction in mobile termination rates, the underlying total revenues increased by 3.3%.
Vodafone said the total number of mobile customers in Qatar reached 1.5mn, representing a decrease of 3% over the same period last year due to a “one-time disconnection” of customers with inadequate customer registration information.
“The board is encouraged by the progress of the business and, in order to accelerate investment in coverage and fixed line opportunities, has decided to recommend that no distribution be made in respect FY 2017,” Vodafone said. On the key priorities for the coming year, Vodafone said, “In the coming year, we will continue to build on the current positive momentum in the business; expanding from our core mobile strength, further investing in fixed line activities and building on our international reputation through innovation and delivery of quality products and services.”
Vodafone Qatar commenced commercial operations in Qatar on March 1, 2009. Having built a world class converged IP network, Vodafone launched fibre-based consumer and enterprise fixed-line services commercially in October 2012.
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