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Kuwait- Wataniya Telecom posts KD 285.1m Q1 net profit  Join our daily free Newsletter

MENAFN - Arab Times - 25/04/2011

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(MENAFN - Arab Times) Wataniya Telecom (National Mobile Telecommunications Company K.S.C. - Ticker: NMTC) is pleased to announce its financial results for the first quarter 2011:

HE Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Chairman of Wataniya Telecom commented:

"The first quarter of 2011 was another successful period for Wataniya Telecom showing continuous growth in customers, revenue and EBITDA. We concluded the increase in shareholding of Tunisiana from 50 percent to 75 percent, thus permitting this entity to be fully consolidated into NMTC. In Q1 2011 Wataniya Telecom has seen an increase in revenue of 35.1 percent and EBITDA by 57.5 percent compared with Q1 2010." He added: "We are committed to providing high quality products and services in order to meet our customers' needs and demands."
Operational Highlights:

Total customer base increased to 16.6 million at the close of Q1 2011, versus 15.8 million at the same period in 2010, amounting to growth of 5.6 percent.

Revenues for Q1 2011 amounted to KD 169.8 million (615.0 million), compared with KD 125.7 million (455.1 million) for the same period in 2010, amounting to growth of 35.1 percent.

EBITDA for the first quarter was KD 73.4 million (265.9 million), compared to EBITDA of KD 46.6 million (168.8 million) for the same period in 2010, amounting to growth of 57.5 percent.

The consolidated Net Profit was at KD 285.1 million (1.03 billion), compared to Net Profit for the same period in 2010 of KD 16.2 million (58.7 million).

Net Profit for Q1 2011 includes a fair value gain of KD 265.5 million (961.5 million) recorded due to revaluation of existing held interest in Tunisiana following the increase in the shareholding from 50 percent to 75 percent. The Net Profit in Q1 2011 without the fair value gain was KD 19.6 million (71.1 million), an increase of 21.2 percent on the same period of 2010.

The consolidated earnings per share was 569 fils (2.1), compared to 32 fils (12 cents) per share earned for the same period last year. Excluding revaluation gain the earnings per share increased to 39 fils (14 cents).

Review of Operations
The Group's operational performance can be summarized as follows:

Wataniya - Kuwait
Wataniya Kuwait's customer base increased to 1.87 million customers at the end of Q1 2011, an increase of 15.2 percent on Q1 2010. Revenues for the first quarter 2011 were KD 62.6 million (226.5 million), an increase of 18.4 percent compared to revenues for the same period in 2010 of KD 52.8 million (191.4 million). EBITDA for Q1 2011 was KD 29.9 million (108.2 million) compared to EBITDA for the same period in 2010 of KD 21.7 million (78.5 million), an increase of 37.8 percent. Net Profit was at KD 285.2 million (1.03 billion), compared to Net Profit for the same period in 2010 of KD 14.7 million (53.1 million).

Net Profit for Q1 2011 includes a fair value gain of KD 265.5 million (961.5 million) recorded due to revaluation of existing 50 percent held interest in Tunisiana following the increase in the shareholding from 50 percent to 75 percent. The Net Profit in Q1 2011 without the fair value gain was KD 19.7 million (71.3 million), an increase of 34.3 percent on the same period of 2010.

Tunisiana - Tunisia
The Tunisiana customer base at the end of Q1 2011 stood at 5.98 million customers: an increase of 10.8 percent on the same period 2010. Revenues for the first quarter 2011 were KD 44.7 million (161.7 million), compared to revenues for the same period in 2010 of KD 26.0 million (94.2 million). EBITDA for Q1 2011 was KD 24.1 million (87.2 million) from KD 13.6 million (49.1 million) for the same period last year representing an increase of 77.2 percent. With the increased Tunisiana shareholding (now 75 percent) both revenue and EBITDA have being consolidated at 100 percent (previously 50 percent).

The total Net Profit stood at KD 9.0 million (32.6 million) an increase of 47.5 percent when compared with KD 6.1 million (22.2) for the same period in 2010. The Net Attributable Profit to Wataniya Telecom for the first quarter 2011 was KD 6.8 million (24.5 million), compared to KD 6.1 million (22.2 million) for the same period in 2010. This reflects the new 75 percent shareholding.

Nedjma - Algeria
The Nedjma customer base at the end of Q1 2011 was 8.08 million customers. Revenues for Q1 2011 were KD 50.5 million (182.9 million), an increase of 33.6 percent compared with revenues of KD 37.8 million (136.9 million) for the same period in 2010. EBITDA for Q1 2011 was KD 19.1 million (69.2 million), an increase of 46.9 percent on KD 13.0 million (47.1 million) for the same period in 2010. The total Net Profit for the first quarter of 2011 was KD 5.2 million (18.9 million) compared to a total net loss of KD 0.9 million (3.4 million) for the same period in 2010. The Net Attributable Profit to Wataniya Telecom for Q1 2011 was KD 3.7 million (13.4 million) compared to a Net Attributable Loss of KD 0.7 million (2.4 million) for the same period in 2010.

Bravo - Kingdom of Saudi Arabia
Bravo's customer base was 0.21 million at the end of Q1 2011, an increase of 4.6 percent from the same period of 2010. Revenues for Q1 2011 decreased to KD 5.0 million (18.1 million) from KD 5.5 million (19.9 million) for the same period in 2010. The total Net Loss for Q1 2011 was KD 2.1 million (7.7 million) compared to a total Net Loss of KD 1.7 million (6.2 million) for the same period in 2010. The Net Attributable Loss to Wataniya Telecom for the first quarter 2011 was KD 1.2 million (4.3 million), compared to the loss of KD 0.9 million (3.4 million) for the same period in 2010.

Wataniya - Maldives
Total customers at end of Q1 2011 were 0.12 million. Revenues were KD 2.8 million (10.0 million) for Q1 2011 compared to KD 2.4 million (8.6 million) for the same period 2010. EBITDA for Q1 2011 was KD 0.8 million (2.7 million) compared to an EBITDA of 0.4 million (1.4 million) for the same period in 2010. The Net Attributable Loss for the first quarter 2011 was KD 0.2 million (0.7 million) compared to the loss of KD 0.6 million (2.1 million) for the same period in 2010.

Wataniya - Palestine
Total customers at end of Q1 2011 were 0.39 million. Revenues were KD 4.3 million (15.7 million) for Q1 2011 compared to KD 1.1 million (4.0 million) for the same period 2010. EBITDA for Q1 2011 was KD -0.2 million (-0.7 million) equal to the same period in 2010. The Net Attributable Loss for the first quarter 2011 was KD 1.2 million (4.4 million) compared to a loss of KD 2.5 million (8.9 million) for the same period in 2010.

Explanation about fair value gain
In January 2011, Group (NMTC) increased its investment in "Tunisiana" from 50 percent to 75 percent. As a result, the Groups ownership and voting interests in Tunisiana; previously treated as a joint venture (joint control) becomes a Subsidiary (obtained Control) and Tunisiana is fully consolidated within Groups interim condensed consolidated financial information.

IFRS 3, Para 42 (extract):
"If the acquirer holds a non-controlling equity investment in the acquire immediately before obtaining control, the acquirer re-measures that previously held equity investment at its acquisition - date fair value and recognizes any resulting gain or loss in income statement"
The KD to conversion rate used is 0.276143 as of March 31, 2011

 






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