Qtel blames FX fluctuations for 11.8% fall in H112 net profit

Qtel Group today announced results for the six-month period to end-June, reporting its consolidated customer base stood at 83.7 million, up eight per cent year-on-year. Group revenue for the period amounted to QAR16.4 billion (US$4.5 billion), up 6.1 per cent year-on-year, with EBITDA for the period amounting to QAR7.8 billion, up 8.2 per cent.

Net profit attributable to Qtel shareholders was down 11.8 per cent to QAR1.35 billion, with the telco attributing this mainly to foreign exchange losses in Indosat and Algeria.

For Q2 to end-June, Qtel’s revenue was up 4.6 per cent to QAR8.356 billion year-on-year, while EBITDA was up 8.5 per cent to QAR3.964 billion. Net profit attributable to Qtel shareholders was down 11.3 per cent year-on-year to QAR641 million.

In Qatar Qtel ended the quarter with 2.43 million customers (H111: 2.38 million). Revenue increased by 7.2 per cent year-on-year to QAR3.1 billion. EBITDA performance showed an increase of 5.8 per cent year-on-year to QAR1.64 billion.

Wataniya Telecom, which encompasses the Qtel Group’s businesses in Kuwait, Tunisia, Algeria, Saudi Arabia, the Maldives and Palestine, saw the telco’s consolidated customer base remaining strong at 18.3 million (H111: 16.9 million). Consolidated revenue in H112 was QAR4.8 billion (H111: QAR4.6 billion) and EBITDA in H112 remained stable at QAR2.0 billion (H111: QAR 2.0 billion).

In Oman, Qtel’s Nawras operation saw H112 revenues stabilise when comparing with H111 although significant competitive pressures remained. The period also saw a return to customer growth both in the mobile and fixed segments. Nawras closed the period with a customer base of 2.0 million (H111: 1.9 million). Revenue for the period was down to QAR939 million (H111: QAR954 million), delivering a lower EBITDA performance year-on-year to QAR456 million for H112 (H111: QAR466 million).

During H112, Qtel reached an agreement on the increase to its shareholding in Asiacell in Iraq from 30 per cent to 53.9 per cent. Over time, the Group hopes to increase further its shareholding to 60 per cent for a total consideration of US$1.47 billion subject to Iraqi government and regulatory authority approval.

In H112, revenue at Asiacell increased by 17.5 per cent to QAR3.3 billion and EBITDA grew by 19.6 per cent to QAR1.8 billion.