Vodafone Qatar posts six-fold jump in distributable profits to QR107mn

01/02/2017 06:27 AST

Vodafone Qatar, which follows the April-March financial year, has reported a six-fold increase year-on-year in distributable profits to QR107mn in the first nine months of 2016.

The telecom operator also witnessed an 18% jump in earnings before interest, taxes, depreciation and amortisation (Ebitda) to QR406mn on improvements in Ebitda margins. "Our financial results highlight continued improvement in our performance during the third quarter, building on the strong momentum we built last quarter," Vodafone Qatar chief executive Ian Gray said.

Vodafone Qatar's net losses narrowed by 32% to QR195mn during the nine-month period despite a 2% fall in customer base to 1.47mn, 4% in revenues to QR1.54bn and 2% in service earnings to QR1.46bn. Net loss per share stood QR0.23 at end of December 31, 2016 compared to QR0.34 in the previous-year period.

During the third quarter alone, distributable profits more than doubled year-on-year to QR69mn, while Ebitda grew 28% to QR169mn. An about 1% increase in revenues to QR541mn helped it lower the net loss by 56% to QR31mn.

"Most notably, Ebitda margin improved during the (third) quarter to 31.2%, reflecting a 28% increase year-on-year and 3.8 pps on a sequential basis, led by improved market pricing, better product mix and tight cost control," Gray said.

The company's customer base grew to 1.47mn within which the post-paid customer base grew 6% in the (third) quarter led by mid-range Connect Plans and high-value Red Plans.

"We intend to continue with our current strategy, building on our international reputation through quality services and products, expanding from our core mobile strength and further investing in fixed line activities," Gray said.

The company's total assets were valued at QR6.72bn at the of nine-month period ended December 31, 2016, comprising current assets of QR0.63bn and non-current assets of QR6.09bn.

Total equity stood at QR4.73bn on a capital base of QR8.45bn.

Gulf Times