Tuesday, February 26, 2008

Wataniya Telecom posts KD 80.7m net profit for 2007

Wataniya Telecom (National Mobile Telecommunications Company ) announced its 2007 financial results with the company posting a consolidated net profit of KD 80.7 million ($294.1 million) for the year or 177 fils (65 cents) per share, an increase of 50 percent compared to KD 53.3 million ($194.1 million), or 118 fils (43 cents) per share earned in the same period for 2006, excluding the Asia-cell operation.

Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of Wataniya Telecom commented, ""We have achieved very good results in 2007 due to the combined efforts of the Group. Our profits distribution for this year is aligned with Wataniya's strategic vision which includes increased investment in technologies and strategic expansion".

He further added, "We are aware of the increasing importance of the telecommunications industry and we are confident that we can deliver the excellent services that customers demand. Therefore, we are working hard to strengthen our strategy by investing more in the latest technologies which are at the core of our current and forthcoming products and services".

Group Highlights
* Total active customers increased to 9,542,055 versus 7,252,570 at the end of 2006, an increase of 32 percent.

* Revenues for the year grew to KD 407.6 million ($1.5 billion), an increase of 26 percent compared to revenues of KD 323.5 million ($1.2 billion).

* EBITDA grew KD 161.2 million ($587.2 million), an increase of 27 percent, compared to an EBITDA of KD 126.8 million ($461.7 million) for the year 2006.

* Consolidated earnings per share are 177 fils for the year 2007.

* All comparative figures are excluding Asia-Cell operational results.
Wataniya Telecom's customer base increased to 1,197,688 active customers. Revenues for the year 2007 were KD 212.2 million ($772.7 million) compared to KD 178.5 million ($650.0 million) at the end of 2006. EBITDA for the year 2007 was KD 107.9 million ($393.0 million), or a 51 percent EBITDA margin, compared to KD 85.2 million ($310.3 million), a 47.7 percent margin for the year 2006. Net profit for the year 2007 was KD 87.7 million ($319.4 million), compared to KD 63.8 million ($232.5 million) for the yea
r 2006.

Tunisia: Tunisiana finished the period with 3,651,813 customers. Revenues for the year 2007 were KD 80.6 million ($293.6 million), an increase of 20 percent from year 2006 or KD 67.1 million ($244.2 million). EBITDA was KD 40.2 million ($146.5 million), an increase of 32 percent compared to KD 30.5 million ($111.2 million), for the year 2006. The net attributable profit to Wataniya Telecom in year 2007 is KD 12.9 million ($ 47.1 million) as compared to KD 8.8 million ($32.0 million) in the year 2006. Wata
niya accounts for Tunisiana on the 50 percent proportionate consolidation method.

Algeria: Nedjma closed the period with 4,535,983 subscribers. Revenues for the year 2007 were KD 101.7 million ($370.5 million) an increase of 38 percent compared to KD 73.9 million ($269.0 million) in the year 2006. EBITDA was KD 23.3 million ($84.8 million) increase of 55 percent compared to KD 15.0 million ($51.3) in year 2006 and the net attributable loss to Wataniya Telecom in year 2007 is KD 9.7 million ($35.2 million) compared to a loss of KD 11.9 million ($ 41 million) in year 2006.

Saudi Arabia: Bravo subscribers reach 91,841 at the end of year 2007. Revenues for the year 2007 were KD 8.5 million ($30.9 million). The net attributable loss to Wataniya Telecom in year 2007 is KD 6.3 million ($23.0 million).
Maldives: Total customers at the year end 2007 were 64,730. Revenues for the year 2007 were KD 4.6 million ($16.8 million) compared to KD 4.1 million ($15.1 million) at the end of 2006.The net attributable loss to Wataniya telecom in 2007 is KD 4.0 million ($14.4 million) compared to KD 3.5 million ($12.7 million) in year 2006.

Iraq: The regulatory authorities in Iraq did not renew Asia-Cell's GSM licence after 31st December 2006, as a result the majority of shareholder of Asia-Cell (a company incorporated in Cayman Islands) filed for voluntary liquidation of Asia-Cell in Grand Court of Cayman Islands.

Further to the appointment of liquidator and submission of arguments of the case, it was agreed to enter into an Asset Sale agreement to dispose the net assets of Asia-Cell to Asia-Cell LLC, a newly formed company. Since then, the sale has been completed and as per liquidators report dated 21st September 2007, the liquidator has offered NMTC $ 107 million being the NMTC's share for the total net assets of Asia-Cell amounting to $225 million. The Board of Directors of NMTC have decided to accept the offered
price of $107 million consisting of $90 million, that will be distributed as a dividend distribution to NMTC and the remaining $17 million represents the settlement of a debt due to NMTC by Asia-Cell.

The $90 million (KD 25.3 million) receivable from the liquidator represents a return of 227 percent over 4 years horizon, based upon the initial investment of $ 27.5 million (KD 7.7 million).

Source: kuwaittimes.net

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