Qtel 1H revenue grows 16.6% to QAR 15.4 billion

Qatar Telecom Q.S.C. (Qtel) on  Sunday announced further positive growth in both revenue and profit during the six-month period ended 30 June 2011, driven by improvements in operations across the Group. *Net Profit Attributable to Shareholders in 2010 was positively impacted in Q1 2010 by a one-off favourable decision on the royalty regime in Qatar (QAR 554 million) that included the periods 2007-2009. The figures shown above have been adjusted to allow a more meaningful year-on-year comparison. Earnings per share in 1H 2011 were QAR 8.16 (1H 2010: QAR 10.14) and have been adjusted as a result of the issuance of 20% bonus shares in Q1 2011. Operational Highlights: Revenue momentum continues in Qatar, driven by increased voice usage and broadband subscribers. Impressive performance from the Wataniya Group portfolio with Kuwait and Algeria delivering particularly strong growth while Tunisia demonstrated robust performance in the mobile segment despite a challenging environment. Iraq and Indonesia maintained their solid mobile revenue growth. Oman remains a highly competitive market; however, the launch of the fixed line business is now having a positive impact on revenues. 1H 2011 represents a further positive period of growth and achievement for the Qtel Group. During this period, the Group s priorities remain in-market strategies, driving subscriber growth and service development across its operational footprint.  As a result, the Group has successfully delivered further revenue and profit growth during the first half, with Group revenue increasing by 16.6 percent to end the period at QAR 15,446 million (1H 2010: QAR 13,244 million), Qtel said in a statement posted on its website. As of 30 June 2011 the Group s consolidated customer base stood at 77.5 million (1H 2010: 66.7 million), representing growth in customer numbers of 16.2 percent. The Group s EBITDA for the same period increased 14.8 percent to QAR 7.2 billion (1H 2010: QAR 6.3 billion).  EBITDA margin remained robust throughout the period at 47 percent (1H 2010: 47 percent). Net profit attributable to Qtel Shareholders increased by 16.7 percent when normalized for a one-off favourable decision on the royalty regime in Qatar in 2010 of QAR 554 million. 1H 2011 net profit attributable to Qtel shareholders stood at QAR 1,436 million (1H 2010: 1,784 million). Commenting on the results, HE Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group said: "In a challenging time, the Qtel Group has again delivered positive financial results, with normalized Net Profit Attributable to Qtel Shareholders growing by 16.7 percent, year-on-year. We believe that this results from our ability to bring the wealth of experience of the Group s staff to bear on our priorities. Our growth is also a result of our willingness to invest in developing markets and to manage those assets with a medium-to-long-term time horizon. That principle is now beginning to bear fruit. Fundamentally the financial results are just a reflection of how we are doing to satisfy and connect with our customers. We believe that we are improving in that respect and our financial results quarter after quarter are showing that." Also commenting on the results Dr. Nasser Marafih, Chief Executive Officer of the Qtel Group said: "One of the key elements of our strategy for growth is that we work hard to achieve and retain leadership positions across the markets we serve. So far this year, we have delivered resilient performances in highly-competitive markets such as Qatar, Kuwait, Iraq and Algeria, demonstrating our capabilities to meet customer demands and exceed their expectations. By balancing innovation with prudent management, we believe that we will continue to maintain our leadership position within our operational markets and within the industry as a whole."