MTC announces a record net income of US$1.051 billion

Mobile Telecommunications Company K.S.C (MTC – KSE Ticker: TELE, RIC: TELE.KW, Bloomberg Code: TELE.KK) announces its 2006 results reflecting the following:

 

2006 Financial Highlights

 

 

Key Events of the year

 

6 February, 2006

MTC announces full acquisition of Mobitel in Sudan

MTC announced the acquisition of 61% of Mobitel from Sudatel in a deal valued at USD 1.332 billion. Through its African subsidiary Celtel International, the deal allowed MTC to increase its stake in the Sudanese company from 39% to 100%.

 

21 May, 2006

MTC Group first in the region to launch 3.5G (HSDPA) commercially

MTC-Vodafone (Bahrain) launched the region’s first new high speed 3.5G service – one of the world’s fastest wireless broadband access technology using mobile phones and Data connect cards. HSDPA service dramatically increases the data by up to five times that of existing 3G networks, and 15 times that of GPRS networks, with data rates of up to 1.8 Mbps per second.

 

30 May, 2006

MTC’s Celtel International acquires controlling stake in V-mobile <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Nigeria

Through its subsidiary, Celtel International, MTC acquired a controlling stake of 65% in V-mobile in Nigeria for USD 1.01 billion. The transaction was Celtel International’s largest ever deal and expanded its presence to 15 markets on the African continent. The deal increased MTC’s customer base by over 5 million and allowed it to tap into Africa’s most populous nation – some 135 million.

 

27 September, 2006

Celtel launches One Network, world’s first borderless mobile phone network

MTC subsidiary Celtel International announced the launch of One Network, the first ever borderless mobile network in the world. This service allows customers to move freely across geographic borders without roaming call surcharges and without having to pay to receive incoming calls.

26 July, 2006

Landmark USD 4 Billion credit facility to fund MTC's future growth

MTC signed the general syndication agreement for the US$ 4 billion credit facility that will be used to fund MTC’s future acquisitions and general corporate needs. Representatives of 39 leading international banks attended the signing ceremony which was the largest syndicated facility for a private sector company in the Middle East.

 

06 December, 2006

USD 1.2 billion Murabaha facility successfully syndicated and oversubscribed

Joint bookrunners from several institutions closed syndication of a USD 1.2 billion Murabaha facility for MTC. A total of 29 financial institutions from the MENA region, Asia and Europe participated in what was one of the largest Islamic financings for 2006.

 

To read more please visit www.mtctelecom.com

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Select Operating and Financial Highlights

 

As of December 31 2006, MTC Group was operating on 2 continents and was serving 27.037 million active customers – an increase of 98% compared to the same period last year. The company was present in 20 countries spread throughout Africa and the Middle East – making it the 5^th largest mobile operator in the world in terms of geographic footprint –serving in markets with a total population of 470 million people.

The company’s remarkable customer increase was primarily driven by its high-growth African operations; and its acquisition of Sudan’s Mobitel and Nigeria’s V-Mobile which alone added 1.84 million and 5.5 million subscribers respectively.

The company reported that its revenues exceeded KD 1.210 billion (USD 4.167 billion) for 2006, an increase of 109% relative to the same period in 2005. MTC's performance figures have been driven by organic growth, new license awards, and acquisitions over the past three and a half years since the company embarked on its profitable “3x3x3” expansion strategy. In 2006, MTC Group’s enviable financial performance was spearheaded by its more mature Middle Eastern operations and an impressive 113% increase in Celtel International’s revenues.

 

"The Group’s consolidated net profit was KD 305.30 million (USD 1.051 Billion) for year end 2006. These figures translate to earnings per share of 247 Fils (85 cents). This is yet another period of strong and sustainable growth in both the top and bottom lines,” said Mr. Asaad Ahmed Al-Banwan, Chairman of MTC. “MTC’s EBITDA was KD 593.96 million (USD 2.045 billion) reflecting vast Group operating efficiencies and synergies during this growth phase, and a testament to our management of a company of this size with operations at various stages of their life cycles.” added Mr. Al-Banwan.  “The acquisition of the shares we did not own in Mobitel, Sudan (61%) in February 2006 coupled with the 65% of Vmobile, Nigeria that we concluded in May 2006 have significantly enhanced our portfolio with strong cash generating and high growth operations. We are continuously on the look out for new profitable opportunities.

 

Customers

MTC Group is now serving a growing customer base of 27.037 million active customers in the Middle East and Africa, representing a year-on-year increase of 98% due to organic growth and landmark acquisitions in Sudan and Nigeria. The company’s subsidiaries are consistently the leading operators in the overwhelming majority of the 20 countries where MTC operates, reflecting its core strategy to be the leader in the markets it serves. As of 2006, MTC’s African operations – through its subsidiary Celtel International – represented 62% of the company’s customer base while the Middle East operations: Iraq, Sudan, Jordan, Kuwait, Lebanon and Bahrain represented the remaining customers.

***It is important to note that as of end of year 2006, the company has retroactively been reporting active customers which have carried out a chargeable event with the company within a 90 days period.

 

 

Active Managed Customers (000s)	2006	2005	Growth

      Bahrain 233 173 35% Iraq 3,198 1,073 198% Jordan 1,961 1,757 12% Kuwait 1,461 1,331 10% Lebanon 560 509 10% Sudan* 2,754 1,962   Middle East Total 10,167 6,805 49%         Burkina Faso 518 299 73% Chad 348 222 57% Congo Brazzaville 683 378 81% Democratic Republic of Congo 1,833 1,178 56% Gabon 514 365 41% Kenya 1,939 1,840 5% Madagascar** 331 -   Malawi 357 199 79% Niger 397 223 37% Nigeria*** 6,396 -   Sierra Leone 243 178 37% Tanzania 1,517 971 56% Uganda 470 291 62% Zambia 1,325 700 89% Celtel Total 16,870 6,824 147%         MTC Group Total 27,037 13,650 98%

 

*MTC acquired Mobitel in February 2006.                                                                               All figures represent active customers,

**MTC acquired Madacom in December 2005.                                                                  those who have made a chargeable event

*** MTC acquired V-Mobile in May 2006.                                           &