Posted on July 25, 2018

Vodafone Qatar P.Q.S.C. (“Vodafone Qatar” or the “Company”) announced its financial results for the first half of the year ended 30 June 2018.

Financial Highlights:

  • 1.7% growth in Total Revenue year-on-year
  • 5.2% increase in EBITDA year-on-year
  • QR 49 million Net Profit
  • 22.3% increase in Postpaid Customers year-on-year

In QR million
(unless otherwise stated)

Half Year Analysis

Quarterly Analysis

6 months ended

YoY Growth
(%)

3 months ended

YoY Growth
(%)

30-Jun-18

30-Jun-17

30-Jun-18

30-Jun-17

Total Customers (000)

1,390

1,464

(5.0%)

1,390

1,464

(5.0%)

Total Revenue

1,051

1,033

1.7%

519

516

0.7%

Service Revenue

960

965

(0.5%)

487

484

0.6%

EBITDA

284

270

5.2%

149

139

7.5%

EBITDA Margin (%)

27.0%

26.1%

0.9pp

28.7%

26.9%

1.8pp

Net Profit Excl Amortisation

91

70

29.5%

 52

44 

20.0% 

Net Profit / (Loss)

49

(131)

180 m

31

(57)

88 m

Financial Summary

During the first six months of the year, Vodafone Qatar delivered solid improvements in its financial and operational performance.  The total revenue of the Company increased by 1.7% compared to the same period last year to reach QR 1.05 billion, driven by a growth in Postpaid subscribers and fixed and higher handset sales.

Half yearly EBITDA increased by 5.2% year-on-year to QR 284million 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 FY2017 to 27% in H1 FY2018.  Compared to the previous quarter, EBITDA increased by 11% majorly due to lower OPEX. Accordingly, EBITDA margin also improved 3.4 percentage points quarter on quarter and stood at 28.7% in Q2 2018. The Company reported its first half yearly net profit of QR 49 million, an increase of QR 180 million compared to H1 2017, driven by higher EBITDA and lower amortisation costs due to the extension of its Mobile Telecommunications Licence. Compared to the previous quarter, net profit increased by QR 14 million and stood at QR 31 million in Q2 2018.Net Profit Excluding Amortisation for H1 2018, which is the Distributable Profit of the Company, increased by 29.5% to reach QR 91 million.

By the end of June 2018, Postpaid customers grew by 22.3% compared to the same period last year, led by the Company’s innovative products and the popularity of the FLEX, Redand Enterprise plans. Consequently, the Average Revenue Per User increased by 6.2% or QR 7 year-on-year to reach QR 108. Vodafone Qatar is now serving 1,390,000 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 QR 66 million in the six months ended 30 June 2018 to QR 554 million.

Commenting on the results, Sheikh Hamad Abdulla Jassim Al Thani, CEO, Vodafone Qatar said: “I am pleased to report another quarter of steady growth and strong financial performance.  We continued to focus on operational efficiency and enhancing our customer experience, in addition to investing in our fixed and mobile capabilities. We recently made a number of major announcements including the Company’s roll out of fibre connectivity in Lusail City, The Pearl-Qatar, Industrial areas and others. The roll out of our 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. We are committed to building a world class connectivity infrastructure that will accelerate the State of Qatar towards becoming one of the most connected and technologically advanced countries in the world in support of Qatar National Vision 2030.”

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