Global Arab Network | Vodafone Qatar makes minor loss of $ 2 million in second quarter

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Vodafone Qatar makes minor loss of $ 2 million in second quarter

Global Arab Network - - George Haddad

Tuesday, 20 July 2010 21:09

Qatar (Doha) - Vodafone Qatar has announced "the company has taken significant strides towards achieving profitability" while announcing its financial results for its first quarter ended June 30. Profitability EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) continues to improve significantly with an adjusted loss of $ 2.42 million (QR 8.8 million) for the quarter June 30 to compared to QR 28.7 million last quarter, a press release from Vodafone Qatar said today.

Vodafone Qatar''s Chief Financial Officer John Tombleson said, "Investors should focus on EBITDA rather than net loss. We believe EBITDA is more indicative of our potential to generate future cash flows as EBITDA doesn’t include the significant amortisation of the license fee.

EBITDA is also the measure on which our dividends will be based in the future." The telecom operator started the first quarter of the new financial year strongly, growing its customer base by 15% on last quarter to reach 534,000 customers as of June 30. This represents 32% of the population of Qatar and an estimated 19% customer market share. Total revenue in the June quarter of QR 175.8 million is an increase of 22% from the previous quarter.

The June quarter Average Revenue Per User (ARPU) increased 3% to QR 104, with customers continuing to maintain dual SIMs. The company''s loss for the financial period improved by 5% from an adjusted loss of QR 155.7 million last quarter to QR 148.7 million in the June quarter.
"We continue to witness the positive trend in quarterly net loss. This is the fourth consecutive quarter of improvement and we expect this trend to continue for the rest of the financial year," said Tombleson.

Commenting on the mobile network Vodafone Qatar’s CEO Grahame Maher said, "Vodafone Qatar''s mobile network is now robust and we are concentrating on providing additional capacity where needed."

The company now has in-building coverage in 67 key buildings across Qatar providing high quality services. Last month Vodafone Qatar held its Extraordinary General Assembly (EGA) where shareholders unanimously approved the changes to the Company’s Articles of Association and Memorandum of Association to officially combine the Fixed Line and mobile businesses.

"We are delighted that Vodafone Qatar is now a full service telecommunications company, bringing us an important step closer to being able to compete equally with Qtel," said Maher. The company continues its drive to target the international worker community in the June quarter where it is estimated to have captured 50% of this market segment. The company intends to launch products for other high value market segments later this year once it has completed a series of projects including development of its technology systems. Vodafone Qatar celebrated its full first year of operations earlier this month on July 7.

"This has been a fantastic first year in Qatar," said Maher. "We have 100% mobile coverage across the country with 534,000 customers and 32% of the population, all achieved in one year. We continue to build on our solid customer base that is the key driver of future performance."

Global Arab Network

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