Vodafone Qatar to cut staff by ten percent, chairman quits

Published May 17th, 2016 - 11:33 GMT
The rise of free internet-based calling apps and messaging such as Viber and Whatsapp has cut into Gulf telecom operators' profits. (Vodafone)
The rise of free internet-based calling apps and messaging such as Viber and Whatsapp has cut into Gulf telecom operators' profits. (Vodafone)

Vodafone Qatar will slash jobs by ten percent, after reporting its sixth consecutive quarterly loss, Reuters reports. 

The telecoms operator, which is 23 percent owned by Vodafone and 22 percent by state-run Qatar Foundation, also said it would not pay a dividend for this financial year.

In a statement on Tuesday, the telecoms operator revealed that its fourth-quarter loss nearly tripled from a year earlier to  QAR 180m compared to  QAR 66m a year earlier. Net losses for the 2015-16 financial year have doubled from 465.7 million riyals to 215.8 million from last year.

The company statement also announced that company chairman Sheikh Khalid Bin Thani al-Thani has quit due to other work commitments, and has been replaced by Rashid al-Naimi.
 

"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," Naimi said in the statement.

The rise of free internet-based calling apps and messaging such as Viber and Whatsapp has cut into Gulf telecom operators' profits. Due to the large number of expats in the Gulf, international calls have been traditionally been an easy revenue earner for Gulf telecom operators.
 
Despite nearly breaking even in mid-2014, The Vodafone Group affiliate has been running at a loss since ending state-controlled Ooredoo's domestic monopoly in 2009, according to Reuters. 
 

 


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