Khalid Barzack of VFQ’s investor relations department, Walters, Daly and Tombleson addressing the media yesterday
Vodafone Qatar (VFQ) has narrowed its first-half net loss by 24% to QR237mn mainly on robust growth in revenues and subscriber base.
The telecom operator, which follows the April-March financial year, also showed a 68% drop in distributable profits to QR35mn in the first six months of this year. The annual distributable profit is the measure on which dividends would be based.
The net loss for April-September included QR202mn as half-yearly amortisation of the QR7.7bn licence fee.
Mobile customers grew 35% year-on-year to 814,000 at the end of second quarter ended September 30. VFQ captured 28% share in mobile customer market and 24.7% in mobile revenue market.
Total revenue surged 53% to QR590mn and average revenue per user by 2% to QR111; while Ebitda (earnings before interest taxes depreciation and amortisation) stood at QR65mn with a margin of 11%.
“Achieving continued Ebitda success is very important as this is a key factor in our ability to pay dividends to our shareholders,” outgoing chief financial officer John Tombleson said, adding the company is expected to pay dividend to shareholders from 2013. “The dividend timing will be a key factor,” VFQ’s new CEO Richard Daly said in response to a query why its scrip prices have not been on a rising path.
VFQ has been trading below its par value of QR10 a share.
VFQ, whose capital expenditure (capex) is expected to be QR270mn in the next six months, has a debt-equity ratio of 10.5% at the end of September 30. It has a borrowing facility of $330mn (QR1.2bn), which is expected to deliver its current mobile and fixed five-year plan.
Tombleson said the company’s capex would stabilise at 10% of revenue from 2015 compared to the present level of 33%.
Asked about the company’s plans to roll out high-speed 4G network, Daly said the current focus is on rolling out 3G across the country.
“My immediate focus will be to ensure our mobile voice and data network is of the very highest quality and that our post pay and roaming services are delivered in a way that delights our premium consumers and businesses,” he said. Daly said VFQ’s fixed line network and expanded range of services would see the telco enter a number of new revenue generating market segments in 2012.
The company has added 80 new cell sites in the last six months, increasing its network by 20% to 500 sites. A further 50 sites are planned by March 2012, Daly said.
Both Daly and the new CFO Steve Walters have been inducted on the board, replacing Tombleson and Mathew Harrison-Harvey, who have tendered their resignations.
Total assets were valued at QR8.21bn, comprising current assets of 0.26bn and non-current assets of QR7.95bn. Total equity stood at QR6.82bn on a capital base of QR8.45bn and loss-per-share was QR0.28 at the end of September 30, 2011.