Qtel records net profit of US$714 million, up 11.6 per cent year-on-year

Qatar Telecom (Qtel) today announced that Group revenue increased in 2011 by 16.0 per cent, ending FY 2011 at QAR31.8 billion (US$8.74 billion).

The Group’s consolidated customer base as of December 31, 2011 stood at 83.4 million, up 12.4 per cent year-on-year. Group EBITDA in 2011 also advanced, increasing by 18.7 per cent to QAR14.8 billion, with Qtel maintaining a strong EBITDA margin of 47.0 per cent in 2011, up from 46.0 per cent in 2010.

Net profit attributable to Qtel’s shareholders after normalisation for a one-off favourable decision on the royalty regime in Qatar in 2010 of QAR554 million, increased year-on-year by 11.6 per cent to QAR2.6 billion.

The Qtel board recommended the distribution of a cash dividend of 30 per cent of the nominal share value (QAR3 per share) and bonus shares representing 30 per cent of the issued share capital.

The board of directors also recommended to the general assembly an increase of authorised share capital of QAR5 billion. Taking into account the long-term strategy of the company, the board approved the issue of 40 per cent rights (two shares for every five shares held, after the distribution of bonus shares) at a price of QAR75 per share, which is subject to approval of the increase of authorised capital by the general assembly and subject to receiving the relevant regulatory approvals.

To capitalise upon the full potential of its diverse markets, the Qtel Group has adapted its strategy to focus on the customer experience, broadband development and embracing parallel business opportunities, positioning the company to continue its progress as a leading international communications company.