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Vodafone Qatar posts 12% surge in 1H

Vodafone Qatar posts 12% surge in 1H

DOHA: Vafone Qatar has reported a 12% growth year-on-year in its earnings before interest, taxes, depreciation and amortisation (Ebitda) to QR237mn and its distributable profits stood at QR38mn in the first half of this year.

The telecom operator, which had 1.46mn customers, registered total revenue of QR1bn during the six month ended September 2016. Vodafone Qatar follows the April-March format against the January-December financial calendar for the other listed companies.

“The business has delivered significant and sustained improvements in network quality, customer  service  and  expanded  our  range  of  innovative  products  in  the  market  place.  We remain optimistic about the outlook for the company,” Vodafone Qatar chief executive Ian Gray said, adding 2015 was a difficult year and performance had improved from a low base.

The Ebitda margin improved to 23.7% in the first half of this year compared to 19.8% in the corresponding period of the previous year.

The company’s net loss stood at QR164mn, which was 23% lower compared with the previous-year period.

“In addition to the significant enhancements undertaken, we have ceased activities and selling products which generated little or no margin. The impact of these changes is clearly evident in the dramatic improvement in customer attitude towards the brand, which shows in our market research and also in the financial performance of the business,, most notably, in  the  improved cash position of the business and a return to surplus in the company’s distributable profits, Gray said.

Total  revenue for the quarter was QR499m flat quarter-on-quarter and down 5.4% from last year, primarily due to conscious decision to move away from low margin business and reduction in regulated  telecom  rates, he said, adding despite  this, its underlying service revenue grew 3.1% year-on-year.

“We intend to continue with our current strategy, building on our international reputation through quality, expanding from our core mobile strength and further investing in fixed line activities (which already account for 29% of sales to businesses),” he said.

Over the recent months, Vodafone Qatar has disconnected nearly 85,000 lines that were without adequate information, which led it to report a customer base of 1.46mn within which the company’s postpaid base grew 3.1% in the quarter and 27.9% year-on-year.