Qtel achieves 42 percent year-on-year revenue growth in first half 2009

Enlarge Image

RELATED ARTICLES

• Qtel achieves 58% year-on-year revenue growth in first quarter 2009
• Qtel Group achieves a record second quarter profit of QR 655 million, an increase of 59%
• Qtel achieves record-breaking revenue and profit for 2008 Group customers reach 57.5 million

Qatar Telecom Q.S.C. today announced robust financial results for the period ending 30 June 2009, driven by continued growth right across its business, which currently spans 17 countries in the MENA region and Asia.  The results show significant growth in many key indicators.

For the first half of 2009, the Group achieved solid consolidated group revenue of QAR 11.5 billion (H1 2008: QAR 8.1 billion), with growth of 42 percent. The Group’s net profit attributable to shareholders for the same period in H1 2009 reached QAR 1.6 billion, registering 38 percent year-on-year growth (H1 2008: QAR 1.2 billion). At 30 June 2009 the Group’s consolidated customer base stood at 52.2 million.

The Group’s EBITDA increased by 36 percent in H1 2009 over the same period last year, increasing to QAR 5.5 billion (H1 2008: QAR 4.0 billion).  The Group’s EBITDA margin held relatively steady during the period at 48 percent (H1 2008: 50 percent).

In the second quarter of 2009, Qtel achieved consolidated group revenue of QAR 5.9 billion (Q2 2008: QAR 4.6 billion), growth of 30 percent. The Group’s net profit attributable to shareholders for the same period reached QAR 1billion, registering 59 percent year-on-year growth. The Group’s consolidated customers stood at 52.2 million compared to 51.4 million in the second quarter of 2008.

A range of factors contributed to the Group’s ongoing success in a challenging economic climate, including the management team’s ongoing focus on profitable growth. The Group’s success in innovating across new product areas has also played a part, combined with the increasing level of knowledge exchange and the development of synergies across the Group’s operations. In addition, strong business development and strategic positioning in key markets including Qatar and Indonesia had a significant impact on results. 

Commenting on the results Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group said:  “We have achieved consistent and demonstrable gains across our operations, delivering 42 percent revenue growth and 38 percent net profit growth during the period.  We continue to concentrate on consolidating our position in key markets and maximizing efficiencies to ensure continuing profit growth for the benefit of all our stakeholders.”

“One of the main highlights during this quarter was the successful execution of key stages in our long-term financing strategy. The issue of our inaugural bonds of US$ 1.5 billon under our new US$ 5.0 billion Global Medium Term Note programme in June 2009 was significantly oversubscribed, following a road show  to global investors. This was the first global bond of a telecom operator in the GCC region. We also successfully secured a US$1.5 billion Forward-Start credit facility, the first ever executed in the GCC region, and the opportunity to join this facility is currently being offered to other lenders during a general syndication phase. Together, these two transactions provide a comfortable financial platform and enhance our financial flexibility for our future development and growth plans,” he added. 

Each of the Group’s operations continued to make progress during the first half of 2009. In its home market of Qatar, Qtel extended its range of products and services and deepened its connection with the people of Qatar. Consolidated customer numbers in Qatar grew in the period by 29 percent to 2.2 million at 30 June 2009.

Also commenting on the results Dr. Nasser Marafih, Chief Executive Officer of the Qtel Group said, “We have deepened our presence across our international markets in the period and have worked hard to stay close to our customers’ needs ensuring that we increasingly become the communications service provider of choice in the markets in which we operate.  We continue to transform the business by sharing best practice and extracting revenue and cost synergies across the Group, positioning our operations for further profitable growth.”

“Our balanced portfolio of telecoms assets across both mature and growth markets means that the Qtel Group has been able to deliver a strong set of results in what remain challenging market conditions. We expect the rest of the year to be characterized by continuing economic uncertainty but we continue to bring more innovative products to the market supported by a business that is increasingly consolidating to create long term value,” he added.
 
Review of Operations
The Qtel Group’s operations made impressive gains during H1 2009 despite the ongoing global economic crisis, and growing competition in markets where Qtel has a presence.  The Group’s operational performance can be summarized as follows:

Qtel - Qatar
The Group’s flagship operation in Qatar performed solidly with its total consolidated customer base in the country growing 29 percent in the period to 2.2 million (H1 2008: 1.7 million).  Mobile customers grew by 32 percent to stand at 1.9 million customers at 30 June 2009. Revenue grew during the first half of 2009 to QAR 2.9 billion (H1 2008: QAR: 2.6 billion), 11 percent higher than at the end of the same period last year. EBITDA increased by 6 percent over the same period to QAR 1.8 billion (H1 2008: QAR 1.7 billion).

Qtel Qatar continued to provide customers with more choice, greater value, higher service quality, and expert business solutions, demonstrated by the influx of new customers during the first half of 2009. Qtel’s first-ever Reward Program, Nojoom, registered more than 30,000 customers in the first three weeks of its launch. Qtel’s ongoing investment in Qatar’s Broadband Internet infrastructure delivered a major upgrade for customers, who saw Broadband speeds doubled, and has enabled the launch of a new generation of products and services.  Qtel’s Triple-Play product grew by 61 percent during the first six months of the year, closing the period with more than 13,000 customers, demonstrating the continuing value being offered to customers by Qtel’s product innovation.

Indosat - Indonesia
Indosat is currently undertaking a full audit of its Q2 2009 performance. The Company expects this audit to be completed and a detailed review of the Company’s Q2 2009 results to be released by the end of August 2009.

At a headline level, Indosat performed solidly in H1 2009 delivering revenue of QAR 3.0 billion (H1 2008: QAR 530 million, post acquisition). In line with the Company’s strategy of identifying and removing ‘calling card-type’ behavior in the subscriber base, customer numbers ended the period at  29.4 million (H1 2008: 33.2 million). Indosat delivered EBITDA for H1 2009 of QAR 1.5 billion (H1 2008: QAR 243 million, post acquisition), succeeding in maintaining EBITDA margins at 49 percent during H1 2009.

Wataniya Telecom - Kuwait
Wataniya Telecom (“National Mobile Telecommunications Company K.S.C.”) encompasses the Qtel Group’s presence in Kuwait, Tunisia, Algeria, Kingdom of Saudi Arabia, the Maldives and Palestine.  In the second quarter, Wataniya Kuwait won a ruling against the Ministry of Communications regarding network license fees, which enabled the company to reverse the previously recorded accruals, net of related expense under other income.

Wataniya Telecom reported revenue of QAR 2.9 billion for H1 2009 (H1 2008: QAR 3.1 billion) as the effects of competitive activities in a number of Wataniya’s markets were felt.  EBITDA for the half year was QAR 1.2 billion, compared to QAR 1.3 billion in the first half of 2008. Wataniya Telecom’s consolidated active customer base grew despite increased competition in many markets, particularly Kuwait, increasing by 14 percent year-on-year to close H1 2009 at 11.9 million (H1 2008: 10.4 million).  New products and services were launched during the period across Wataniya’s markets, designed to retain customers and drive usage of services.

Nawras - Oman
Nawras delivered well in H1 2009. Since being awarded the second fixed license in June 2009, Nawras is now working towards providing fixed, data and international telecommunication services in Oman, and use its network infrastructure to offer a range of leading-edge technologies such as WiMAX and HSDPA services.  Customer numbers in H1 2009 increased by 30 percent to 1.7 million (H1 2008: 1.3 million) and the company achieved revenue of QAR 752 million, an increase on H1 2008 of 23 percent (H1 2008: 609 million). Nawras also grew EBITDA, delivering an increase in H1 2009 of 41 percent to QAR 340 million (H1 2008: QAR 241 million).  Growth was driven across the business with the launch of product promotions to capture new customers and also to grow market share of the data market with new postpaid data tariffs.

Asiacell - Iraq
During the period Asiacell significantly increased its customer base from 4.8 million at the close of H1 2008 to 7.0 million at the close of H1 2009. Asiacell also successfully delivered revenue of QAR 1.8 billion, significantly higher than in H1 2008 (H1 2008: QAR 1.2 billion). EBITDA growth was also achieved growing 53 percent year-on-year to close H1 2009 at QAR 941 million (H1 2008: QAR 614 million).

Other Qtel Group operations
In May the Group opened a regional office in Singapore to provide a support base for the Group’s increased operations in the Asia region. In Pakistan, wi-tribe Pakistan launched wireless broadband Internet service in the country, with an initial roll out in Karachi, Islamabad, Lahore and Rawalpindi.