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Vodafone Qatar posts first-ever net profit of QR118 mn in 2018

Vodafone Qatar posts first-ever net profit of QR118 mn in 2018

Tribune News Network
Doha
Vodafone Qatar reported a net profit of QR118 million for the year ended December 31, 2018, the first ever profitable year, resulting in a significant increase compared to last year, the company announced in a statement on Monday.
Vodafone Qatar said the strong financial results for the financial year 2018 are primarily due to its success in growing postpaid subscribers and fixed services, as well as its effective cost-optimisation programme.
The company’s total revenue returned to year-on-year growth for the first time in four years, increasing 5.1 percent year-on-year to reach QR2.10 billion, driven by growth in postpaid, fixed and handset revenue.
EBITDA for the reported period stood at QR584 million, representing an increase of 8.5 percent compared to last year, positively impacted by higher revenue and lower costs. Consequently, the EBITDA margin improved by 0.9 percentage points to reach QR27.8 percent.
Free cash flow for the year stood at QR201 million, a 33 percent increase year-on-year, consequently reducing net debt to QR419 million.
Based on the 2018 solid financial results, the board of directors has recommended the distribution of a cash dividend of 5 percent of the nominal share value or QR0.25 per share, totalling QR211.4 million, for approval at the company’s annual general assembly.
Vodafone Qatar is currently serving 1.41 million customers.
The company said its postpaid customers grew outstandingly in 2018 by 24.1 percent due to the innovative products and the popularity of Vodafone’s FLEX, Red and Enterprise plans. Reflecting the company’s growth in postpaid, the total average revenue per user (ARPU) for the year stood at QR105, a 5.6 percent growth year-on-year.
Vodafone Qatar CEO, Sheikh Hamad Abdulla Jassim al Thani, said, “The year 2018 was defined by strong financial performance and a year that truly marked a significant turning point in the life of our company. The crucial decisions made and milestones achieved in our strategy have put us on a clear path to growth.
“We made major strides in 2018 to become a fully converged telecommunications company and I am extremely proud of our role of being at the forefront of the digital era. We have built an ecosystem of digital products and services for the evolving demands of our customers for both consumers and businesses alike.”
He added, “Now, with 5G deployments well underway across key locations in the country, since switching on our 5G network in August 2018, we have strengthened our commitment to invest in Qatar’s information, communication, and technology sector and bring world-class infrastructure to the country.
“Beyond our investments in 5G technology, we are also investing heavily in our fixed-network infrastructure. We are rolling out Vodafone GigaNet fiber in more than 20 strategic areas with plans in 2019 to continue our roll-out.
“We are confident that we have the right strategy in place to succeed and accelerate our company’s growth in 2019 and beyond.”

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