Qtel Group posts 2008 profit of US$625 mn

Qtel Group has announced a record annual net profit of QR2.277 billion (US$625 million) for the full year 2008, a 36 per cent increase from a year earlier. The net profit came on the back of consolidated revenues of QR20.319 billion, a 93 per cent increase from 2007.

CEO Nasser Marafih says the Qtel Group focussed on extending reach during 2008, with a strong emphasis on improving profitability

Qtel Group customers numbered 57.5 million across 17 countries at the end of 2008, up 253 per cent from the end of 2007 when the group counted 16.3 million. The huge growth in subscribers is mainly attributable to the acquisition of Indonesia’s Indosat, which accounts for 37 million subscribers.

Qatar, Indonesia, Kuwait, Iraq and Algeria now represent the group’s five largest markets by revenue, contributing 27, 21, 15, 14 and nine per cent respectively.

The operator’s home market of Qatar continued to perform strongly with an active subscriber base of 1.9 million customers, and revenues of QR5.4 billion. Operating under the Asiacell brand in Iraq, Qtel’s subscribers grew 42 per cent to 6.1 million, while Nawras in Oman commands 47 per cent market share with 1.5 million active customers.

Regarding Q408 results, Qtel Group posted a net profit of QR446 million, representing a growth rate of 19 per cent from QR375 million in Q407, while revenues grew 74 per cent to QR6.045 billion.

As a result of the company’s solid results, the board has recommended a 100 per cent cash dividend to be distributed to shareholders, worth QR10.

“One of our most significant achievements in 2008 was that even as we extended our regional reach, we continued to enhance our profitability… It is particularly pleasing to see that this continued, strong growth has come from both the traditional and newer parts of the Qtel family. Our operations here at home in Qatar have continued to deliver solid growth in 2008, and we enter 2009 confident in our position as competition comes on-stream,” stated CEO of Qtel Group, Nasser Marafih.

“Furthermore, our operations in Indonesia, which are the newest additions to our group, have further consolidated their already strong position. Indosat now commands 28.7 percent of Indonesia’s mobile market: A market that holds great potential for future growth,” Marafih added.