Vodafone Qatar has reported a 7% increase year-on-year in its mobile customer base to 1.55mn in the year ended March 31, 2016.
Total revenue was down 8% year-on-year to QR2.12bn and net loss amounted to QR466mn for the review period, said a spokesman of the company, which follows April-March format compared with the January-December calendar by other listed companies.
“The past year has been difficult for the company with the impact of structural changes in our industry, namely the increasing use of data at the expense of international voice traffic, and sustained price competition, particularly in the prepaid market, severely impacting our revenue performance,” according to Rashid Fahad al-Naimi, acting chairman.
Mobile average revenue per user stood at QR107, which has seen a 13% drop year-on-year.
The company’s underlying Ebitda (earnings before interests taxes depreciation amortisation) was QR451mn representing a margin of 21% after adjusting for one-off non-recurring items. Reported Ebitda was QR401mn for the year.
Vodafone Qatar’s capital expenditure was at QR396mn in the year ended March 31, 2016, representing 19% of revenues being reinvested.
Highlighting that its cost base has increased in line with the growing scale of business operations, collectively leading to a reduction in earnings; al-Naimi said “in light of these results, the company has performed a review of its cost base to ensure we sustain our margins in the future.”
As part of cost rationalisation, Vodafone Qatar confirmed about a 10% reduction in the workforce and write-offs in various non-performing assets.
“Unfortunately, the company is not in a position to recommend a dividend for the fiscal year,” a company spokesman said.
Despite the difficult trading conditions, the telecom operator has taken important steps to strengthen its operations and network infrastructure to adapt to the developing market and be better positioned to deliver long term returns.
“We remain confident in the potential of the Qatari telecommunications market, investing QR396mn during the year to enhance our network infrastructure and expand coverage,” he said, adding it has delivered a comprehensive network modernisation programme, spending about QR1bn in total.


Focus on traditional revenue streams, fixed line service


Vodafone Qatar will augment its traditional revenue streams and invest cost effectively in the country’s fixed line service this year as well as select a new chairman.
The selection of a new chief comes after Sheikh Dr Khalid bin Thani al-Thani has decided to step down from his role as the company’s chairman and as a board member due to his other work commitments.
Rashid Fahad al-Naimi has been appointed as acting chairman and will serve for the remaining term of the current board, pending the appointment of a new board at the company’s annual general assembly, scheduled to be held on July 25.
Highlighting the priorities for 2016 fiscal year, a company spokesman said Vodafone Qatar is focused on its mission to deliver innovative products and services and exceptional customer experience by taking an increasingly segment approach to the market, differentiating itself through international brand and superior network.
“We will look to augment our traditional revenue streams with adjacent business opportunities and invest in a cost-effective approach to unlocking the country’s fixed service potential,” he said.