Qtel posts QR2bn 9mth profit amid robust revenue growth

Sheikh Abdullah and Marafih: Growing portfolio of innovative products and services

Qatar Telecom (Qtel) has reported an 18% fall in its January-September net profit to QR2bn despite robust revenue base.The telecom group’s consolidated revenue otherwise surged 17% to QR23.57bn amidst an environment of ongoing competitive and market challenges.Seasonal promotions and foreign exchange losses impacted the net profit in the third quarter of 2011, a Qtel spokesman said. The net profit for the July-September period fell 13% to QR567mn.The group’s consolidated customer base rose 19% to 82.4mn and its Ebitda (earnings before interest taxes depreciation and amortisation) by 15% to QR10.93bn with almost a stable Ebitda margin of 46% during the first nine months of this year.“In addition to introducing a growing portfolio of innovative products and services for our customers, the first nine months of 2011 have seen normalised net profit increase by 6.4% year-on-year,” Qtel chairman Sheikh Abdullah bin Mohamed bin Saud al-Thani said.Stressing that its focus remained on customer retention and growth, Qtel Group CEO Nasser Marafih said the company had undertaken competitive promotions of products and services while managing costs. “This has resulted in strong Ebitda growth in key markets such as Iraq, Kuwait and Algeria,” he added.The group’s earnings-per-share was QR11.38 at the end of September 30, 2011 and have been adjusted as a result of the issuance of 20% bonus share in the first quarter of this year.On the domestic market, where it has 2.4mn customers, Qtel’s revenue was flat at QR4.20bn whereas Ebitda improved by 2% to QR2.2bn.Qtel has made major progress wit its Fibre programme, reaching technical readiness for commercial launch and trial phase completed for the long-term evaluation programme that would deliver the fourth generation network for mobile broadband across the country.In Indonesia (Indosat), where the group’s customer base grew 28% to 51.8mn, revenues rose 9% to QR6.4bn, thus enhancing the Ebitda by 6% to QR3.1bn.Indosat’s revenue growth remained positive primarily on growing mobile subscriber numbers as well as fixed line data, Qtel said, adding overall mobile growth continued to be moderate.About Wataniya Telecom –encompassing operations in Kuwait, Tunisia, Algeria, Saudi Arabia, the Maldives and Palestine – consolidated customer base was up 7% to 17.4mn. Revenue and Ebitda grew 41% and 58% to QR7.2bn and 3.1bn respectively. In Algeria, revenue and Ebitda had risen 35% and 38% and in Kuwait, they were up 18% and 24%.Investments in retention efforts and product offerings across Wataniya portfolio delivered top-line returns, with significant revenues growth in Kuwait and Algeria, the spokesman said.In Oman (Nawras), Qtel’s fixed-line subscribers reached 17,000 and mobile customers at 1.9mn. Although revenue rose 5% to QR1.4bn, Ebitda fell marginally to QR726mn.In Iraq (Asiacell), customer base rose 10% to 8.7mn, revenue by 17% to QR4.3bn and Ebitda by 9% to QR2.3bn.