Vodafone Qatar results show strong cash generation
26 Oct 2017 - 0:00
Vodafone Qatar announced its financials for the six months ended September 30, 2017, and reported a net profit of QR47.8m (excluding Amortization) representing an improvement of 26.4 percent driven by assets becoming fully depreciated.
Despite the network outage that took place in July, the Company’s EBITDA stood at QR236m for the six-month period ended September 30 2017. EBITDA Margin improved in H1 2018 to reach 25 percent, up from 23.7 percent over the same period last year representing a 1.3 percentage points increase (year-on-year) aided by a more profitable product mix and a QR18m reversal of provisions no longer required.
Total revenue and service revenue in H1 2018 declined to QR945m and QR899m respectively due to events arising from the network outage and an aggressive pricing environment. The net financing position continued to improve to reach QR626m in Q2 2018 recording the lowest level in the Company’s history.
By the end of September 2017, the total customers number decreased to 1.38 million (to be exact 1,389,000) customers, 68,000 customers lower compared to the same period last year due to the impact of the network outage, a slowdown of economic growth and the timing of holidays.
However, Postpaid customers grew by 20.8 percent led by the popularity of Vodafone’s FLEX plans. FLEX is an innovative product which gives customers the freedom and flexibility to use data, make local & international calls and SMS interchangeably on one balance with no pre fixed quota.
Commenting on the results, Ian Gray (pictured), CEO, Vodafone Qatar, said: “Despite the setback in July, our recovery and growth plans continue. We also recently announced our new brand positioning ‘The Future is Exciting…. Ready?’ in which we want our customers to truly feel our commitment to Qatar and trust that the Vodafone brand will always be their digital partner delivering great innovation and world class technology.”
“Moreover, I’m very pleased that a number of changes to our Articles of Association were approved by shareholders at our Extraordinary General Assembly meeting held last week. These changes, including change of the Company’s financial year end to December each year, will closer align the Company to other listed companies in Qatar,” continued Ian Gray.