Wataniya Telecom sees fall in 2012 profits

Competition and currency fluctuations hit Wataniya Telecom's results
Wataniya Telecom operates in six countries in the Middle East and Africa.
Wataniya Telecom operates in six countries in the Middle East and Africa.

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Wataniya Telecom, a unit of Qatar’s Qtel Group, experienced a steep decline in profits in 2012 owing to fierce competition in its home market and currency fluctuations in North Africa.

The telco posted profits of for the full year 2012 of KD 75.5 million ($268.5 million), a drop of 28% compared to its 2011 adjusted net profit of KD 96.8 million ($344.2 million). The adjusted net profit for 2011 excludes a fair value gain of KD 265.3 million ($943.5 million) recorded due to revaluation of existing held interest in Tunisiana following the increase in the shareholding from 50% to 75%.

The telco attributed this decline in profit to competitive pressure in Kuwait, foreign exchange movements in Algeria and Tunisia and an impairment charge for a Build-Operate-Transfer operation in 2012.

Wataniya Telecom’s revenues for 2012 were KD 742.5 million ($2.64 billion), compared with KD 726.6 million ($2.58 billion) for the same period in 2011, amounting to growth of 2.2%.

The operator’s total customer base increased to 19.2 million at the close of 2012, versus 17.8 million at the same period in 2011, amounting to growth of 7.8%.

H.E. Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, chairman of Wataniya Telecom, said: “From a strategic standpoint, 2012 has been a successful year as we position ourselves for the future. Wataniya Telecom increased our stake in Tunisiana from 50% to 75% and we have seen continued efforts of network modernisation across our markets with LTE planned for Kuwait and 3G and fixed services roll-out in Tunisia.

“While operationally during this period, Wataniya Telecom has seen stable revenue growth of 2.2%, foreign exchange impacts again impacted profitability and competitive dynamics in Kuwait remain challenging. I look forward to 2013 as efforts already underway in our markets will begin to drive positive and sustainable results for Wataniya Telecom.”

Click on next page for a detailed breakdown of Wataniya Telecom’s results in Kuwait, Tunisia, Algeria and Palestine, Saudi Arabia and the Maldives.


Wataniya - Kuwait

Wataniya Kuwait's customer base increased to 2.03 million customers at the end of 2012, an increase of 3.8% on the same period 2011. Revenues for the year 2012 were KD 220.8 million ($785.3 million), decrease of 9.4% compared to revenues for the same period in 2011 of KD 243.6 million ($866.4 million). EBITDA for the year 2012 was KD 84.4 million ($300.2 million) compared to EBITDA for the same period in 2011 of KD 111.1 million ($394.9 million), a decrease by 24.0%. Net Profit was at KD 46.4 million ($164.9 million), compared to Net Profit for the same period in 2011 of KD 328.1 million ($1.2 billion).

Net Profit for the year 2011 includes a fair value gain of KD 265.3 million ($943.5 million) recorded due to revaluation of existing 50% held interest in Tunisiana following the increase in the shareholding from 50% to 75%.

The Net Profit for 2011 without the fair value gain, and after amortization of intangibles arising from the Tunisiana acquisition was KD 62.8 million ($ 223.2 million).

Tunisiana - Tunisia

The Tunisiana customer base at the end of 2012 stood at 7.19 million customers, an increase of 8.6% on the same period in 2011. Revenues for the year 2012 were KD 201.9 million ($718.1 million), compared to revenues for the same period in 2011 of KD 210.0 million ($746.7 million). EBITDA for the year 2012 was KD 108.0 million ($384.2 million) from KD 118.8 million ($422.5 million) for the same period last year representing a decrease of 9.1%.

The total Net Profit stood at KD 46.7 million ($166.2 million) a decrease of 11.4% when compared with KD 52.7 million ($187.6 million) for the same period in 2011. The Net Attributable Profit to Wataniya Telecom for the year 2012 was KD 35.2 million ($125.1 million), compared to KD 39.6 million ($140.7 million) for the same period in 2011. Foreign exchange movement in 2012 had an adverse impact on Tunisiana’s performance with the TND/USD rate 11.1% unfavourable compared to 2011.

Nedjma–Algeria

The Nedjma customer base at the end of 2012 was 9.06 million customers, an increase of 6.5% compared to the same period last year. Revenues for the year 2012 were KD 266.9 million ($949.1 million), an increase of 19.3% compared with revenues of KD 223.7 million ($795.6 million) for the same period in 2011. EBITDA for the year 2012 was KD 105.4 million ($374.7 million), an increase of 26.7% on KD 83.2 million ($295.8 million) for the same period in 2011.

The total Net Profit for the year 2012 was KD 27.6 million ($98.1 million) compared to a total Net Profit of KD 14.4 million ($51.4 million) for the same period in 2011. The Net Attributable Profit to Wataniya Telecom for 2012 was KD 19.6 million ($69.6 million) compared to a Net Attributable Profit of KD 10.3 million ($36.5 million) for the same period in 2011. Foreign exchange movements in 2012 impacted Nedjma’s performance with the DZD/USD rate 6.5% unfavorable compared to 2011.

Wataniya - Palestine

The total customer base at end of 2012 was 0.61 million, an increase of 31.2% from the same period of 2011. Revenues for the year 2012 were KD 23.5 million ($83.6 million), an increase of 13.9% compared to the revenues of KD 20.6 million ($73.4 million) in the year 2011. EBITDA for 2012 was KD 1.7 million ($6.2 million) in the year 2012, compared to an EBITDA of KD 1.0 million ($3.7 million) for the same period in 2011.

The total Net Loss for the year 2012 was KD 6.7 million ($23.7 million) compared to a total Net Loss of KD 7.2 million (USD 25.6 million) for the same period in 2011. The Net Attributable Loss for the year 2012 was KD 3.2 million ($11.5 million) compared to a Net Attributable Loss of KD 3.5 million ($12.4 million) for the same period in 2011

Bravo - Kingdom of Saudi Arabia

Bravo’s customer base was 0.16 million at the end of 2012, 5.2% increase from the same period of 2011. Revenues for the year 2012 decreased to KD 18.2 million ($64.6 million) from KD 19.3 million ($68.6 million) for the same period in 2011.The total Net Profit for the year 2012 was KD 0.6 million ($2.1 million) compared to the total Net Loss of KD 10.7 million ($38.2 million) for the same period in 2011. The Net Attributable Profit to Wataniya Telecom for 2012 was KD 1.3 million ($4.6 million), compared to a Net Attributable Loss of KD 6.0 million ($21.3 million) for the same period in 2011.

Wataniya - Maldives

The total customer base at end of 2012 was 0.18 million, an increase of 22.5% from the same period of 2011. Revenues were KD 11.2 million ($39.8 million) for the year 2012 compared to KD 9.4 million ($33.4 million) for the same period 2011. EBITDA for the year 2012 was KD 2.6 million ($9.2 million) compared to an EBITDA of KD 1.6 million ($5.8 million) for the same period in 2011. The Net Attributable Loss for 2012 was KD 2.2 million ($7.9 million) compared to the Net Attributable Loss of KD 2.7 million ($9.7 million) for the same period in 2011.

The KD to USD conversion rate used is 0.28120 as of 31st December 2012

 

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