•Earnings per share for FY 2011 were QAR 14.80 (FY 2010: QAR 16.41) and have been adjusted as a result of the issuance of 20 percent bonus shares in Q1 2011.

 

 

•Strong performance from the Wataniya portfolio, with robust revenue and EBITDA growth in Kuwait, Tunisia and Algeria, in addition to the first positive EBITDA results in Palestine. 

 

•Market positions maintained in key operations of Qatar, Indonesia and Iraq with financial results showing positive growth. 

 

•Acquisition of additional stake in StarHub Limited (Singapore), taking the Qtel Group’s effective stake to 14.14 percent.

 

•New Qtel Group strategy unveiled, with the accent on customer experience, broadband development and productivity.

 

•Post period-end, Indosat agreed to the sale and leaseback of approximately 25.0 percent of its tower portfolio, for a total potential consideration of US$519 million.

 

 

During the course of the past twelve months, the Qtel Group has continued to make significant operational, efficiency and infrastructure improvements across its international footprint. Particular attention has been paid this year to the opportunities presented by data, both in markets where data usage is already established, and in markets where the opportunity is just beginning to emerge.  Driven by customer growth and market share gains across the portfolio, Group revenue has increased this year by 16.0 percent, ending FY 2011 at QAR 31.8 billion (FY 2010: QAR 27.4 billion).

 

 

The Group’s consolidated customer base as at 31 December 2011 stood at 83.4 million (FY 2010: 74.1 million) which represents a12.4 percent year-on-year increase.  Group EBITDA in 2011 also advanced, increasing by 18.7 percent to QAR 14.8 billion (FY 2010: QAR 12.5 billion).  The Group also maintained a strong EBITDA margin, with EBITDA margin for 2011 standing at 47.0 percent (FY 2010: 46.0 percent).

 

 

Net profit attributable to Qtel’s shareholders after normalization for a one-off favourable decision on the royalty regime in Qatar in 2010 of QAR 554 million, increased year-on-year by 11.6 percent. FY 2011 net profit attributable to Qtel shareholders stood at QAR 2.6 billion (FY 2010: QAR 2.3 billion).

 

 

 

 

“The strength of our business, our brands and our in-market propositions is made clear in the strong financial results we are reporting today.  We have solidified our position in some of the most competitive markets in our footprint.  We have maintained our reputation for being first to market with advanced services and offerings and we have delivered positive returns to our shareholders through sustained, profitable growth.

 

 

 

On behalf of the Board of Directors I am pleased to recommend to the General Assembly the distribution of a cash dividend of 30 percent of the nominal share value (QAR 3 per share) and bonus shares representing 30 percent of the issued share capital.”

 

 

Also commenting on the results Dr. Nasser Marafih, Chief Executive Officer of the Qtel Group said: 

 

“The positive operational and financial momentum across our Group has continued this year, with a strong and sustained performance delivered across our entire portfolio.  Data remains a key strategic focus for us in many markets and an important driver of our 2011 and future growth.  

 

The opportunity for our Group in data has only just begun and is, in fact, just one of many opportunities that we see on the horizon.  To capitalise on technology changes, our strategy is evolving.  In the year ahead we will increase our focus on differentiated customer experience, on transforming the way we manage our operations, and we will embrace emerging and adjacent opportunities to expand our business.  This energetic approach, coupled with challenging financial targets, will ensure that we are at the forefront of telecoms innovation and excellence in the regions where we operate.”

 

 

 

 

The Board of Directors recommends to the General Assembly an increase of authorised share capital to QAR 5 billion.

 

Taking into account the long-term strategy of the company, the Board of Directors approved the issue of 40 percent rights (two shares for every five shares held, after the distribution of bonus shares) at a price of QAR 75 per share, which is subject to approval of the increase of authorised capital by the General Assembly and subject to receiving the relevant regulatory approvals.

 

 

 

 

 

Recognising the ongoing growth potential of the Qatar market, Qtel reorganised into functional business streams, enabling faster and more effective decision-making, in the last quarter of 2011. The change process has been designed to improve the customer experience, by enabling Qtel to launch new services and resolve issues faster and more effectively. It will also support ongoing cost optimisation efforts. 

 

 

Progress on key infrastructure in the last quarter of 2011 positioned the company to expand into new business areas in 2012. The completion of technical preparations and regulatory approval ensured that Qtel was ready to commercially launch Qtel Fibre in 2012, opening new opportunities in the high-speed Broadband and entertainment areas. The company also launched its LTE/4G (Long Term Evolution) programme, to provide cost-effective, fast multimedia mobile data services for customers.

 

At the end of 2011, Qtel had 2.4 million customers (FY 2010: 2.4 million) in Qatar and revenue of QAR 5.7 billion (FY 2010: QAR 5.6 billion). EBITDA stood at QAR 2.9 billion (FY 2009: QAR 2.9 billion). 

 

 

 

 

Indosat focused in 2011 on the delivery of good value and quality customer experiences, helping to bolster the company’s reputation for customer service and centricity.  This was officially recognised in 2011, with Indosat proud to be named “Indonesia Mobile Service Provider of the Year” in addition to “Indonesia Telecom Service Provider of the Year” by a global business research and consulting firm.

 

Segmentation remains central to Indosat’s growth plans and the company launched a range of exciting voice and data packages this year, each tailored to important growth segments such as the growing youth and professional populations.  The network modernisation programme first started in 2009 has also continued, with promising initial trials of LTE technology carried out this year, in addition to the establishment of a dedicated “Indosat Innovation Laboratory” to support research into the telecommunication standards of tomorrow.  

 

 

At the end of FY 2011, Indosat’s consolidated customer base stood at 51.9 million (FY 2010: 44.8 million), with particularly strong growth achieved in cellular.  Revenue for FY 2011 also grew by 7.7 percent year-on-year to QAR 8.6 billion (FY 2010: QAR 7.9 billion) while EBITDA increased to QAR 4.2 billion (FY 2010: QAR 4.0 billion).

 

 

 

Wataniya Telecom (“National Mobile Telecommunications Company K.S.C.”) encompasses the Qtel Group’s businesses in Kuwait, Tunisia, Algeria, Kingdom of Saudi Arabia, the Maldives and Palestine.

 

Wataniya has generated further top-line and profitable growth this year across its portfolio, even in the face of a number of in-market pressures.  Growth in the Kuwaiti marketplace, for example, has been particularly encouraging, with 10.0 percent year-on-year growth in subscribers and 14.0 percent growth in revenues achieved in what remains a competitive environment.  Tunisiana has also delivered positive financial and subscriber growth to solidify its market position.

 

In other key markets, Wataniya’s operation in Palestine has succeeded in delivering its first positive EBITDA performance this year and, in Algeria, Nedjma has continued to increase its share of the value market. This strong performance has combined to deliver growth for Wataniya this year across all key financial metrics.  Revenue for FY 2011 grew by 37.4 percent to QAR 9.6 billion (FY 2010: QAR 7.0 billion), with even stronger growth of 50.4 percent achieved at the EBITDA line due to overall growth in operations and full consolidation of Tunisiana in 2011 vs. 50 percent proportionate consolidation up to 2010.  EBITDA for FY 2011 stood at QAR 4.2 billion (FY 2010: QAR 2.8 billion).  

 

 

 

 

 

 

The Asiacell business has again delivered strong results with further subscriber, revenue and EBITDA growth achieved over the past twelve months.  At the end of 2011, Asiacell’s total subscriber base stood at 9.0 million: more than 10.0 percent growth over the same figure this time last year (FY 2010: 8.1 million).  Ongoing success at Asiacell is directly linked to the Company’s investments in innovative services and in the network over which those services are delivered.  

 

Mindful that any future growth in data usage in Iraq will predominantly be delivered wirelessly, Asiacell has carried out GPRS/EDGE network upgrades this year in addition to launching 3G trials in key regions.  For FY 2011 Asiacell delivered revenue of QAR 5.9 billion (FY 2010: QAR 5.1 billion), representing growth of 17.4 percent.  EBITDA also increased, growing by 23.4 percent year-on-year to end FY 2011 at QAR 3.2 billion (FY 2010: QAR 2.6 billion).

 

 

 

 

 

 

In 2011 Nawras secured a number of important operational achievements across all aspects of its business.  During the year, Nawras continued to make significant network investments, particularly in identified growth areas such as broadband and recently launched fixed-line services.  The Nawras network can now deliver broadband to more than 87 percent of the Omani population.  One quarter of Nawras customers now use broadband services regularly and close to 50 percent connect to broadband at least once a month.  Regulatory change including a shorter termination period of inactive SIM cards from 12 to 6 months led to a slight decrease in total customer numbers this year, closing 2011 at 1.96 million (FY 2010: 2.03 million), marking post-paid growth of 2.6 percent and a 248.4 percent increase in the fixed-line base(27,175 customers): two clear indications of the strength of the Nawras offering.

 

 

 

Taken together, these achievements have enabled Nawras to generate revenue in FY 2011 of QAR 1.9 billion: a 4.0 percent increase year-on-year (FY 2010: QAR 1.9 billion).  Nawras also delivered an improved EBITDA performance, growing EBITDA by 1.1 percent to QAR 979 million (FY 2010: QAR 968 million).