Vodafone Qatar yesterday reported a net profit of QR134m for the financial year ended March 31, 2017, registering an improvement of QR196m from losses previous year.
The telecom operator reported that EBITDA (earnings before interest, tax, depreciation and amortization, which is a measure of a company’s operating performance) increased significantly by 34 percent year-on-year to QR537m due to gains in post-paid market share, a better mix of higher margin revenues and the success of new innovative products introduced to the market. This was coupled with strong cost control following on from the restructuring of the business and 10 percent reduction in overall headcount in Q1.
Although total revenues decreased by 2.9 percent, due to a shift away from lower margin business and reduction in mobile termination rates, underlying total revenues increased by 3.3 percent. Total number of mobile customers reached 1.5 million, representing a decrease of 3 percent over the same period last year due to a one-time disconnection of customers with inadequate customer registration information.
“This has been an important year for Vodafone Qatar. We have achieved a turnaround in the business and delivered real improvements in financial and operational performance. Notably, the superior quality of our network was substantiated by independent technical network audit and our world class customer service is reflected in our positive customer satisfaction result,” said Ian Gray (pictured) , Vodafone Qatar’s Chief Executive Officer.
“The Board is encouraged by the progress of the business and, in order to accelerate investment in coverage and fixed line opportunities, has decided to recommend that no distribution be made in respect financial year 2017,” he added.
“In the coming year, we will continue to build on the current positive momentum in the business; expanding from our core mobile strength.”