Wataniya full-year results reflect market challenges

Wataniya Telecom has reported that its fourth-quarter revenues fell slightly to KD183.4 million (US$649 million), while net profit was down by 26 per cent to KD12.6 million.

The operator’s total customer base increased to 19.2 million at the close of 2012, up from 17.8 million at the same period in 2011, reflecting growth of 7.8 per cent.

Revenues for the full year reached KD 742.5 million, compared with KD 726.6 million in 2011, up 2.2 per cent.

Net profit for the full year fell to KD 75.5 million, down from KD 362.1 million in 2011. Net profit for 2011 was boosted by a one-off gain of KD 265.3 million due to revaluation of an existing held interest in Tunisiana following the increase in the shareholding from 50 per cent to 75 per cent.

Net profit for 2012 was also adversely impacted by various factors including competitive pressure in Kuwait, foreign exchange movements in Algeria and Tunisia and an impairment charge for a build-operate-transfer operation in 2012.