MTC earnings go up
The Mobile Telecommunications Company K.S.C Board of Directors met Monday and announced the company’s financial and operational results for the third quarter and first nine months of 2004. MTC is the leading wireless services operator in Kuwait and Jordan as well as one of the leading regional operators also serving customers in Bahrain, Iraq, and Lebanon.
The Board of Directors announced that MTC had recorded consolidated revenues of KD 84.15 million during the third quarter of 2004 resulting in nine month consolidated revenues of KD 236.81 million. MTC’s consolidated net income for the third quarter was KD 29.44 million, with a year-to-date nine month total of KD 89.47 million. The net income figures translate into earnings per share of 58 Fils for the quarter and 176 Fils for the first nine months of 2004.
Mr. Ahmed Al-Nassar, MTC Chairman of the Board and Managing Director said: “On behalf of the MTC Board of Directors and myself, I would like to wish everyone Seasons Greetings with the advent of the Holy month of Ramadan. Ramadan is a special month of prayer worship and benevolence. During Ramadan, MTC asserts its social corporate responsibility through the many activities it sponsors in all the communities it serves. MTC’s results during the first three quarters have exceeded budget expectations so far and we are very confident that 2004 will be a very good year in terms of financial and operational performance. The company is simultaneously expanding its operations and improving its bottom line performance. MTC has posted earnings for the first nine months of 176 Fils per share an increase of 8.6% compared to the same period last year and that represents an increase in Shareholders' equity from KD 310 million to KD 351 million or a 13.2% increase so far this year."
As of September 30th, 2004 the MTC group of companies is serving a growing customer base of over 2.837 million active customers in Kuwait, Jordan, Bahrain, Iraq, and Lebanon reflecting an increase of 55.8% when compared to September 30th, 2003 and an increase of 8.65% when compared to June 30th, 2004. MTC’s management is determined to achieve its very ambitious target of serving 5 million customers by year end 2005.
An increase of 42,708 customers in Kuwait during the third quarter of 2004 saw MTC Vodafone Kuwait close the first nine months of the year with over 1.115 million active customers, maintaining an estimated 57% market share while the total penetration rate of mobile customers in Kuwait is approaching 80% of the total population.
Postpaid customers account for 26% of our total customers. Blended ARPU for the first nine months of 2004 was $48.88. MTC Vodafone Kuwait is currently the largest contributor to consolidated revenues, EBITDA, and net income.
In Jordan, MTC's operating subsidiary PELLA (Fastlink) maintained its market leadership position by all financial and operating measures. Fastlink maintained an estimated 73% market share. The company is exceeding all budget expectations almost achieving expected full year projections in some key performance indicators during the first 9 months of 2004. Customers increased by 5.9% during the third quarter while revenues increased by 15.4% when compared to the third quarter of 2003. Net profit margin for the first nine months of 2004 improved to 23.7%. Fastlink is second in terms of contribution to the consolidated financial performance of MTC Group results.
During the third quarter of 2004, MTC Vodafone Bahrain has increased its active customer base by 58.5% over the second quarter of 2004. MTC Vodafone Bahrain had a 13% market share at the end of the period. The company is deploying the latest technology to attract more customers.
MTC's subsidiary Atheer has been in operation for 7 months. As of September 30th, 2004 Atheer's total active customers numbered 142,545 and 98% of them prepaid customers. Atheer management and employees are challenged to meet the demand for service. The company plans to accelerate network rollout increasing both capacity and coverage in order to accommodate more customers.
The most recent addition to the MTC Group is MTC Liban. The company has been in operation for 4 months. The total number of customers served by the network has reached 425,585 representing a 4% increase since June 30th, 2004. The 48 month management contract awarded to MTC by the Lebanese government has allowed the MTC Group to expand its regional presence while enhancing and maximizing all stakeholders' interests and returns. MTC is in the process of introducing a new brand for the Lebanese network it operates. (menareport.com)