Vodafone Qatar has reported a net profit of QR49mn in the first six months of this year compared with a net loss of QR131mn in the corresponding period of 2017.
The company’s profitability was owing to higher EBITDA (earnings before interest tax depreciation amortisation) and lower amortisation costs due to the extension of its mobile telecommunications licence.
Compared to the previous quarter, net profit increased by QR14mn to QR31mn in the second quarter (Q2) 2018. Net profit excluding amortisation for the first half (H1) 2018, which is the distributable profit of the company, increased 29.5% to reach QR91mn.
Vodafone Qatar’s licence, which was originally granted by the Communications Regulatory Authority for 20 years, has been extended for an additional 40 years until 2068, which will greatly help reduce annual amortisation costs from QR403mn to about QR100mn.
Total revenue grew almost 2% year-on-year to QR1.05mn, driven by a growth in postpaid subscribers and fixed and higher handset sales.
The half yearly EBITDA increased 5.2% to QR284mn driven by higher revenue, lower operating expenses (Opex) and a one-off provision release. This resulted in an EBITDA margin expansion of 0.9 percentage points from 26.1% in H1 of FY2017 to 27% in H1 FY2018. Compared to the previous quarter, EBITDA increased 11% majorly due to lower Opex. Accordingly, EBITDA margin also improved 3.4 percentage points quarter-on-quarter and stood at 28.7% in the second quarter of 2018.
“We continued to focus on operational efficiency and enhancing our customer experience, in addition to investing in our fixed and mobile capabilities,” said Sheikh Hamad Abdulla Jassim al-Thani, chief executive of Vodafone Qatar.
By the end of June 2018, postpaid customers grew 22.3%, led by the company’s innovative products and the popularity of the FLEX, Red and Enterprise plans. Consequently, the average revenue per user increased 6.2% or QR7 year-on-year to QR108.
Vodafone Qatar is now serving 1.39mn customers, with a decline of 1.4% compared to last quarter, due to the holiday period.
The net debt of the company further reduced by QR66mn to QR554mn for the six month ended June 30, 2018.
Sheikh Hamad said the roll out of ambitious fixed line plans in locations around the country will be instrumental in driving forward Qatar’s digital agenda, as will be Vodafone Qatar’s 5G services that will be launched before the end of the year.
Sheikh Hamad: Operational efficiency.
