Vodafone Qatar Q.S.C. announces half-year results
4 November, 2009: Vodafone Qatar Q.S.C. ("Vodafone Qatar") has announced half-year results ending 30 September, 2009.
- 150,799 Customers at 30 September
- 38,184 Freedom "Account" customers
- 112,615 "RED" Prepaid customers
- 7% customer market share at 30 September (9% population share)
- QR183 ARPU for month of September 09
- 250,000 Customers reached during October (15.5% population share)
- Revenue of QAR 39.2m for the six months to 30 September, of which QR22.2m was earned in the month of September.
- EBITDA loss of QAR 156.2m for the six months to 30 September
- Financial results are inline with the annual budget and on target to meet the forecasts outlined in the Initial Public Offering ("IPO") prospectus
- Ahead of expectations on customer numbers, which is the key driver to outperforming future financial targets
Grahame Maher, Chief Executive Officer, commented:
The first six months of this financial year have been filled with many great achievements for Vodafone Qatar. We have made impressive progress in building our network to cover 99% of the Qatar population in under twelve months and our customer base has grown way beyond our expectations.
Due to our global buying power and low cost structure locally, we have been able to build an extremely efficient operating model. This model has contributed to ensuring we are on target to deliver against our annual budget, with an EBITDA loss of QR 156.2m in the half-year to 30 September.
We were incorporated as a company on 22 June 2008, and since then we have incurred operational and capital expenditure setup costs that are required for ourfuture customer growth over the next 10 years. The financial results are inline with our annual budget and the targets outlined in our business plan and IPO prospectus.
In the IPO prospectus we explained that we expect to be EBITDA positive in the year ending 31st March 2011 and dependant on the needs of the business, we expect to be able to pay dividends following the year ended 31st March 2013,when we will be cash flow positive on a cumulative basis. The results of our first three months of customer operation give me comfort in confirming these previous forecasts.
I would like to thank all our shareholders for their ongoing support while we succeed in growing our business and promise that we will continue to "Make aworld of difference for all the people in Qatar!"
Some milestones of the past 6 months of this financial year:
- Very successful IPO in April which wasfully subscribed. The IPO raised just under US$1 billion, making it the largest IPO in the world this year at the time of close of subscription
- In the June quarter, Vodafone Qatar welcomed 15,000 shareholders as customers, from an exclusive offer to our IPO shareholders.
- On7 July, Vodafone Qatar officially launched ‘Freedom' "account" plans to the general public. These great value plans were launched exclusively through Vodafone Qatar's online retail store, and Vodafone Qatar rapidly became one of the largest online retailers in Qatar.
- The first retail store was opened on 13 July and now there are 8 Vodafone stores located throughout Qatar. By the end of September, Vodafone Qatar's partner based distribution network meant customers could connect to Vodafone in 500 locations and could recharge with Red prepay cards in 1,300 locations all across Qatar.
- On 9 September, ‘Red' prepay plans were launched revealing unprecedented demand amongst consumers for Vodafone Qatar products and services. The success of ‘Red' and ‘Freedom' combined with the promotional offer of "international calling at the cost of a local call", has led to 150,799 customers joining Vodafone Qatarby 30 September. A significant achievement in just 3 months of commercial launch.
- Vodafone Qatar involvement in charitable events in the community was initiated. During Ramadan Vodafone provided Iftar for 4,500 people in need and distributed 1,500 boxes containing dates and water during the holy month to help people break their fast. In addition, Vodafone Qatar's ‘Worldof Difference programme' will pay the salaries of up to 4 people from Qatar to work on a charitable cause of their choice for a year to help complete projects that will make a sustainable world of difference to the lives of others. The Vodafone Qatar Foundation made the single biggest donation of any Vodafone Foundation in the world to Reach Out To Asia for a 2 year partnership to support people from the Sub Continent.
(1) Includes amortising the mobile license of QR7.7bn over 20 years, beginning in May 2009.