Abdulla bin Nasser Al Misnad
Chairman of the Board of Directors
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to share with you Vodafone Qatar’s financial results and business performance for the year ended on December 31st, 2020.
For many businesses, 2020 was an exceptionally difficult year. The earlier phases of the pandemic were particularly challenging and maintaining a delicate balance between safety measures and maintaining quality required enormous effort.
Nonetheless, Vodafone Qatar chose to face these challenges and move forward with executing its defined corporate strategy to include continued investment in its infrastructure and expanding its advanced network to cover key areas across the country with 5G and fibre. Our commitment to advanced technical solutions, including the Internet of Things, Cloud Services and Big Data is enabling Qatari entities, of all sizes and from all industries, to optimise their automation needs. As the trusted digital partner for a number of the country’s leading entities, Vodafone’s infrastructure and support services have become an integral part of these organisations’ digital transformation strategy, and a strong contributor to our 2020 growth trajectory.
The Group reported its highest-ever Net Profit of QR 185 million, a 29% increase compared to the previous year mainly driven by EBITDA growth, despite the impact of COVID-19.
Total revenue for the year increased by 3.5% to reach QR 2.2 billion due to higher demand for the Group’s fixed broadband services (GigaHome) and continued growth in Postpaid. Service Revenue grew by 3.7% to QR 2 billion and the mobile customer base stood at 1.7 million. EBITDA stood at QR 808 million reflecting strong growth of QR 99 million or 14% compared to last year, positively impacted by the higher service revenue and the continued cost optimisation programme. Consequently, EBITDA Margin improved by 3.4 percentage points to reach 36.7%, the highest in the Company’s history.
Based on Vodafone Qatar’s commitment to enhance shareholder value and the strong financial performance, the Board of Directors have recommended the distribution of a cash dividend of 5% of the nominal share value, i.e. QR 0.05 per share, which will be presented at the Company’s next Annual General Assembly for approval.
On behalf of the Board of Directors, thank you to His Highness Sheikh Tamim bin Hamad Al-Thani, the Amir of the State of Qatar and to His Highness, Sheikh Hamad bin Khalifa Al-Thani, the Father Amir.
The Board is grateful to the regulators for extending their continued support for our vision, in particular the Communications Regulatory Authority, the Ministry of Transport and Communications, the Ministry of Commerce and Industry, the Qatar Financial Markets Authority and the Qatar Stock Exchange.
Our sincerest and most earnest appreciation goes to our executive management team for their leadership and to our employees for their relentless effort, dedication and commitment to our customers and to the company. Furthermore, we would like to extend our utmost appreciation to our customers and valued shareholders for their trust in Vodafone Qatar.
Abdulla Bin Nasser Al Misnad
Chairman of the Board of Directors
On behalf of the Board of Directors, I am pleased to share with you Vodafone Qatar’s financial results and business performance for the year ended on December 31st, 2020.
For many businesses, 2020 was an exceptionally difficult year. The earlier phases of the pandemic were particularly challenging and maintaining a delicate balance between safety measures and maintaining quality required enormous effort.
Nonetheless, Vodafone Qatar chose to face these challenges and move forward with executing its defined corporate strategy to include continued investment in its infrastructure and expanding its advanced network to cover key areas across the country with 5G and fibre. Our commitment to advanced technical solutions, including the Internet of Things, Cloud Services and Big Data is enabling Qatari entities, of all sizes and from all industries, to optimise their automation needs. As the trusted digital partner for a number of the country’s leading entities, Vodafone’s infrastructure and support services have become an integral part of these organisations’ digital transformation strategy, and a strong contributor to our 2020 growth trajectory.
The Group reported its highest-ever Net Profit of QR 185 million, a 29% increase compared to the previous year mainly driven by EBITDA growth, despite the impact of COVID-19.
Total revenue for the year increased by 3.5% to reach QR 2.2 billion due to higher demand for the Group’s fixed broadband services (GigaHome) and continued growth in Postpaid. Service Revenue grew by 3.7% to QR 2 billion and the mobile customer base stood at 1.7 million. EBITDA stood at QR 808 million reflecting strong growth of QR 99 million or 14% compared to last year, positively impacted by the higher service revenue and the continued cost optimisation programme. Consequently, EBITDA Margin improved by 3.4 percentage points to reach 36.7%, the highest in the Company’s history.
Based on Vodafone Qatar’s commitment to enhance shareholder value and the strong financial performance, the Board of Directors have recommended the distribution of a cash dividend of 5% of the nominal share value, i.e. QR 0.05 per share, which will be presented at the Company’s next Annual General Assembly for approval.
On behalf of the Board of Directors, thank you to His Highness Sheikh Tamim bin Hamad Al-Thani, the Amir of the State of Qatar and to His Highness, Sheikh Hamad bin Khalifa Al-Thani, the Father Amir.
The Board is grateful to the regulators for extending their continued support for our vision, in particular the Communications Regulatory Authority, the Ministry of Transport and Communications, the Ministry of Commerce and Industry, the Qatar Financial Markets Authority and the Qatar Stock Exchange.
Our sincerest and most earnest appreciation goes to our executive management team for their leadership and to our employees for their relentless effort, dedication and commitment to our customers and to the company. Furthermore, we would like to extend our utmost appreciation to our customers and valued shareholders for their trust in Vodafone Qatar.
Abdulla Bin Nasser Al Misnad
Chairman of the Board of Directors
Hamad Abdulla Al-Thani
Chief Executive Officer
Dear Shareholders,
The year 2020 proved to be unprecedented in the wide array of challenges brought about due to the global pandemic. Like many companies around the world, Vodafone Qatar had to continue to deliver critical national digital infrastructure to keep families connected, enable businesses to operate, students to learn, health care to be delivered, and governments to provide critical services. Our employees, the vast majority of whom worked remotely, ensured that our customers remained connected and continued to have access to essential services. I am truly in awe of the role we played during these challenging times, and despite the circumstances, the great performance we were able to deliver this year. This is a strong testament to our team’s strength and commitment.
Business Performance
Our Turnaround Strategy – in place since 2018 – is in effect and the results can be seen in our continued growth over the past year. Revenue increased by 3.5% to QR 2.2 billion, our EBITDA margin increased by 3.4pp to 36.7%, and our net profit increased 29% to QR 185 million. Our customer base stood at 1.7 million users, and we now have 23.7% of the total revenue market share (12 months rolling basis as of Q4-2020) in Qatar. We have achieved this growth despite the overall telecom industry and local telecom market-specific headwinds that have resulted in the continued erosion of overall market value. As we look ahead, we will continue to focus on the execution of our strategy and we remain confident in our ability to continue to deliver profitable and responsible growth to our shareholders.
Building a World Class Network
Fundamental to our long-term ability to sustain our current growth momentum lies in the importance of Vodafone to be at the forefront of technological advances. In 2020, we accelerated investments in both our wireless and fixed network infrastructure in addition to modernising our IT systems. Since the launch of our Fibre broadband network in 2018, our footprint has expanded at full speed, amplifying our presence and proving to be a strong alternative in the market. On the Radio Access Network, we grew our base stations by >35% over the past three years, and deployed our 5G network to reach 70% population coverage in Qatar by the end of the year.
These investments have enabled us to continue to diversify our revenue mix and to both reduce our exposure and minimize the impact of intensifying competitive pressure on any singular line of business at a given point in time, which was not the case a couple of years ago.
Strengthening our Core Business
This year saw the acceleration of our GigaHome broadband services along with GigaTV, our premium entertainment service, and the continued success of our unlimited 5G mobility value proposition within the consumer segment. Within the enterprise segment, we have been laser-focused on deepening our relationships, and extending beyond connectivity with a portfolio of managed services and smart solutions and elevating the quality of experience with investments in digital self- service solutions for account management.
Looking to the Future
Internally, the transformation of our operating model will remain in focus, and we will continue to transform our ways of working through investments in both solutions and capabilities in advanced analytics, process automation, digital operations, and digital channels. Externally, we will continue to canvas emerging technologies and innovation within our industry and seek out strategic opportunities that are adjacent to our core business.
Commitment to our CommunitiesThe year 2020 proved to be unprecedented in the wide array of challenges brought about due to the global pandemic. Like many companies around the world, Vodafone Qatar had to continue to deliver critical national digital infrastructure to keep families connected, enable businesses to operate, students to learn, health care to be delivered, and governments to provide critical services. Our employees, the vast majority of whom worked remotely, ensured that our customers remained connected and continued to have access to essential services. I am truly in awe of the role we played during these challenging times, and despite the circumstances, the great performance we were able to deliver this year. This is a strong testament to our team’s strength and commitment.
Business Performance
Our Turnaround Strategy – in place since 2018 – is in effect and the results can be seen in our continued growth over the past year. Revenue increased by 3.5% to QR 2.2 billion, our EBITDA margin increased by 3.4pp to 36.7%, and our net profit increased 29% to QR 185 million. Our customer base stood at 1.7 million users, and we now have 23.7% of the total revenue market share (12 months rolling basis as of Q4-2020) in Qatar. We have achieved this growth despite the overall telecom industry and local telecom market-specific headwinds that have resulted in the continued erosion of overall market value. As we look ahead, we will continue to focus on the execution of our strategy and we remain confident in our ability to continue to deliver profitable and responsible growth to our shareholders.
Building a World Class Network
Fundamental to our long-term ability to sustain our current growth momentum lies in the importance of Vodafone to be at the forefront of technological advances. In 2020, we accelerated investments in both our wireless and fixed network infrastructure in addition to modernising our IT systems. Since the launch of our Fibre broadband network in 2018, our footprint has expanded at full speed, amplifying our presence and proving to be a strong alternative in the market. On the Radio Access Network, we grew our base stations by >35% over the past three years, and deployed our 5G network to reach 70% population coverage in Qatar by the end of the year.
These investments have enabled us to continue to diversify our revenue mix and to both reduce our exposure and minimize the impact of intensifying competitive pressure on any singular line of business at a given point in time, which was not the case a couple of years ago.
Strengthening our Core Business
This year saw the acceleration of our GigaHome broadband services along with GigaTV, our premium entertainment service, and the continued success of our unlimited 5G mobility value proposition within the consumer segment. Within the enterprise segment, we have been laser-focused on deepening our relationships, and extending beyond connectivity with a portfolio of managed services and smart solutions and elevating the quality of experience with investments in digital self- service solutions for account management.
Looking to the Future
Internally, the transformation of our operating model will remain in focus, and we will continue to transform our ways of working through investments in both solutions and capabilities in advanced analytics, process automation, digital operations, and digital channels. Externally, we will continue to canvas emerging technologies and innovation within our industry and seek out strategic opportunities that are adjacent to our core business.
In response to COVID-19, we launched initiatives that demonstrate our commitment to the community in Qatar:
- Safety First: We successfully moved to remote working with > 90% of employees working remotely at some point during the pandemic.
- Digital Operations and Delivery: We ramped up our digital channels and launched direct delivery of products and services to homes and businesses.
- Launched a campaign to celebrate the commitment of our frontline and essential workers.
- Helped Business and Schools Stay Connected:Provided mobile broadband connections for both businesses and schools.
- Social Commitment: Four million COVID-19 public health awareness messages were sent, 500 labour workers were provided with free data to support the Ministry of Transport and Communications and Ministry of Public Health to raise health awareness.
I want to thank our Board, shareholders, and customers for their trust in Vodafone and continued support in realizing our ambition, an ambition rooted in our commitment of leadership in connecting today’s ideas with tomorrow’s technology. Last but not least, I want to recognize our employees who have gone above and beyond during this unprecedented time in history, thank you for your constant support and commitment towards helping us remain market leaders even in times of difficulty and uncertainty.
Sincerely,
Hamad Abdulla Al-Thani
Chief Executive Officer
Who We Are
Vodafone Qatar offers a comprehensive range of services that include voice, messaging, data, fixed communications, Internet of Things, and ICT managed services for both consumers and businesses in Qatar. The Company began commercial operations in 2009 and is serving 1.7 million mobile customers as of 31 December.
A key driver of innovation in the telecommunications market, Vodafone Qatar is leading the way as one of the first operators in the world to go live with commercial 5G services and provide customers with a suite of 5G products and services. This milestone comes as a result of rapid progress in rolling out its 5G network across the country since August 2018.
Vodafone Qatar is also accelerating the growth of its fixed network infrastructure and is providing the backbone and communications ecosystem for many of the country‘s iconic developments.
With a strong commitment to developing the digital infrastructure that will contribute towards establishing Qatar‘s long-term growth and prosperity while also enhancing the quality of life, Vodafone Qatar’s relationship with the community it operates in extends well beyond the products and services it provides. Over the years, the Company’s social investments have been aligned to its purpose to connect the people in Qatar and support them to lead a better future, by building a digital based society that enhances socioeconomic progress, fosters inclusivity, and does not come at the cost of our planet.
With over 29,000 institutional and retail shareholders, Vodafone Qatar is 92% Qatari-owned. This figure includes the 45% of shares owned by Vodafone and the Qatar Foundation LLC. As a member of the Qatar Stock Exchange, Vodafone Qatar also has a paid-up capital of QR 4.227 billion.
The Company’s vision for the future is deep-rooted in its mission to connect today’s ideas with the technologies of tomorrow, by pioneering digital innovation and aspiring to become Qatar’s first choice for telecoms and digital services. Vodafone Qatar lives up to its slogan ‘The Future is Exciting, Ready?’ – an invitation to all its customers and the people of Qatar to embrace and enjoy the digital future together as partners.
A key driver of innovation in the telecommunications market, Vodafone Qatar is leading the way as one of the first operators in the world to go live with commercial 5G services and provide customers with a suite of 5G products and services. This milestone comes as a result of rapid progress in rolling out its 5G network across the country since August 2018.
Vodafone Qatar is also accelerating the growth of its fixed network infrastructure and is providing the backbone and communications ecosystem for many of the country‘s iconic developments.
With a strong commitment to developing the digital infrastructure that will contribute towards establishing Qatar‘s long-term growth and prosperity while also enhancing the quality of life, Vodafone Qatar’s relationship with the community it operates in extends well beyond the products and services it provides. Over the years, the Company’s social investments have been aligned to its purpose to connect the people in Qatar and support them to lead a better future, by building a digital based society that enhances socioeconomic progress, fosters inclusivity, and does not come at the cost of our planet.
With over 29,000 institutional and retail shareholders, Vodafone Qatar is 92% Qatari-owned. This figure includes the 45% of shares owned by Vodafone and the Qatar Foundation LLC. As a member of the Qatar Stock Exchange, Vodafone Qatar also has a paid-up capital of QR 4.227 billion.
The Company’s vision for the future is deep-rooted in its mission to connect today’s ideas with the technologies of tomorrow, by pioneering digital innovation and aspiring to become Qatar’s first choice for telecoms and digital services. Vodafone Qatar lives up to its slogan ‘The Future is Exciting, Ready?’ – an invitation to all its customers and the people of Qatar to embrace and enjoy the digital future together as partners.
