Vodafone Qatar, which has witnessed a 5% jump in customer base to 1.42mn in the first three months of this year, has reiterated its growth plans are on track despite “extreme” competitive pressures.
The telecom service provider, has, however, reported widening of its net loss to QR99.85mn in the first three months of this year despite higher customer base, of which 88% accounted for prepaid customers.
Revenue was down 8% to QR537.9mn and mobile average revenue per user stood at QR111 at the end of June 30, 2015. The company follows April-March financial year compared with the January-March format of other listed companies.
Earnings before interest taxes depreciation and amortisation fell 31% year-on-year to QR110mn as employee expenses rose 3% to QR54.11mn and other expenses by 9% to QR134.24mn; even as interconnection and other operational expenses declined 4% to QR239.44mn.
“The Qatari telecom market continues to face extremely competitive pressure on prices, which is impacting the company’s results in the short term,” Vodafone Qatar chairman Sheikh Dr Khalid bin Thani al-Thani said.
After factoring in higher depreciation and amortisation, Vodafone witnessed more than quadrupling of operating loss to QR95.65mn as there was also loss of QR8mn on disposal of fixed assets.
The company had shown QR23,000 as profit from ‘Mudaraba’ and QR4.23mn as ‘Wakala’ financing cost.
“Despite the prevailing market conditions, we remain committed to our growth plans and to continue to offer an unmatched suite of products and services over Qatar’s fastest data network with the widest 4G+ coverage,” according to Sheikh Dr Khalid.
Highlighting that the company has made “significant” investments last financial year to deliver “the fastest data network” in Qatar and completed its entire networks enhancement plan in Doha, he said it was moving into the second phase of this plan to ensure that its infrastructure reaches customers across Qatar.
Vodafone Qatar’s total assets were to the tune of QR7.49bn, comprising current assets of QR0.63bn and non-current assets of QR6.86bn.
Total equity stood at QR5.29bn on a capital base of QR8.45bn and loss-per-share was QR0.12 at the end of first three months ended June 30, 2015.
Sheikh Dr Khalid: Committed growth plans.
