Qatar Telecom (Qtel) Q.S.C. (“Qtel” or “Qtel Group” or “Group”) (Ticker: QTEL.QA) today announced year-on-year growth in both revenue and normalised net profit attributable to Qtel’s shareholders during the nine-month period ended 30 September 2011.

Financial Highlights:
*Net Profit Attributable to Shareholders in 2010 was positively impacted in Q1 2010 by a one-off favourable decision on the royalty regime in Qatar (QAR 554 million) that included the periods 2007-2009. The figures shown above have been adjusted to allow a more meaningful year-on-year comparison.

Earnings per share for 9M 2011 were QAR 11.38 (9M 2010: QAR 13.84) and have been adjusted as a result of the issuance of 20% bonus shares in Q1 2011.

Operational Highlights:

Ongoing revenue momentum in Qatar driven in part by broadband subscription growth: Key progress in Qtel Fibre project positioning the company for the future.

Investments in retention efforts and product offerings across Wataniya portfolio delivering top-line returns, with significant revenue growth in Kuwait and Algeria.

Despite a continuing competitive marketplace, Nawras performance was steady with fixed-line revenue and customers showing strong growth compared to 2010.

Indosat’s revenue growth remained positive driven primarily by increased mobile subscribers as well as fixed line data: Overall mobile market growth continued to be moderate.

Seasonal promotions and foreign exchange losses impacted Q3 2011 net profit.

The Qtel Group has made solid operational and financial progress in the nine-months to 30 September 2011. In an environment of ongoing competitive and market challenges, the Group has successfully delivered top-line growth when compared to 2010 while driving forward new innovations in technology, products and services. These efforts have enabled the Group to deliver further revenue and profit growth in 9M 2011, with Group revenue increasing by 16.6 percent to end the period at QAR 23.6 billion (9M 2010: QAR 20.2 billion).

The Group’s consolidated customer base, as at 30 September 2011 stood at 82.4 million (9M 2010: 69.1 million) which represents a 19.4 percent year-on-year increase. Group EBITDA in 9M 2011 also advanced, increasing by 14.6 percent to QAR 10.9 billion (9M 2010: QAR 9.5 billion). The Group also maintained a stable EBITDA margin, with EBITDA margin for 9M 2011 standing at 46 percent (9M 2010: 47 percent).

Net profit attributable to Qtel’s Shareholders increased by 6.4 percent when normalized for a one-off favourable decision on the royalty regime in Qatar in 2010 of QAR 554 million. 9M 2011 net profit attributable to Qtel shareholders stood at QAR 2.0 billion (9M 2010: QAR 1.9 billion).

Commenting on the results, His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of the Qtel Group said:

“The Qtel Group continues to deliver positive financial results for our shareholders. In addition to introducing a growing portfolio of innovative products and services for our customers, the first nine months of 2011 have seen normalized Net Profit increase by 6.4 percent, year-on-year. Alongside this we are also investing in our people and expertise across the Group, so that we are able to respond to and anticipate our customers’ needs. These dual priorities are enabling the Group to generate value from mature markets and developing markets while maintaining our leadership
position in the industry.”

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

“Our focus remains on customer retention and growth. In the period we have undertaken competitive promotions of our products and services across our markets while also managing costs. This has resulted in strong EBITDA growth in key markets such as Iraq, Kuwait and Algeria compared with 2010. In parallel, the Qtel Group is making significant progress towards ensuring that our operations are Broadband-ready. We continue to tailor and adapt our offerings so that we meet the needs of customers across our diverse national markets.”

Review of Operations

The Group’s operational performance can be summarized as follows:

Qtel – Qatar

Qtel’s focus on innovation and customer service helped deliver positive results in Qatar’s competitive market.
Recognising the importance of higher value customers, Qtel continues to invest in a range of customer service innovations to reduce churn and deliver higher levels of retention. Qtel also made important progress during the period with the Qtel Fibre programme reaching technical readiness for commercial launch and the trial phase completed for its LTE/4G project. Revenue was steady at QAR 4.2 billion (9M 2010: QAR 4.2 billion), and EBITDA performance increased 1.6 percent year-on-year to QAR 2.2 billion (9M 2010: QAR 2.2 billion). Qtel’s customer base was stable at 2.4 million.

Indosat – Indonesia

Indosat has delivered solid year-on-year performance in the first nine-months of 2011 with subscriber as well as revenue and EBITDA growth. Total subscriber numbers at 30 September 2011 stood 28.2 percent higher compared to 2010 at 51.8 million (9M 2010: 40.4 million). The expanded subscriber base and a focus on ongoing product and service refinements have seen revenue in 9M 2011 increasing by 8.6 percent to QAR 6.4 billion (9M 2010: QAR 5.9 billion). This revenue growth has also translated in to further EBITDA improvements,  with EBITDA in 9M 2011 increasing by 5.5 percent to end the period at QAR 3.1 billion (9M 2010: QAR 3.0 billion).

Wataniya Telecom

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 succeeded in delivering revenue and EBITDA growth in 9M 2011, with particularly positive results in Algeria, where revenue and EBITDA grew by 34.7 percent and 37.8 percent, and in Kuwait where year-on-year results for revenue and EBITDA increased by 18.3 percent and 24.4 percent. The continuing development of Wataniya Mobile in Palestine has also continued, with further market share and revenue growth achieved.

As a result, the Wataniya Group level has delivered a further strong financial performance in 9M 2011. Wataniya’s consolidated customer base grew by 7.2 percent to stand at 17.4 million at 30 September 2011 (9M 2010: 16.2 million). Strong revenue growth was also achieved, with revenue in 9M 2011 increasing by 40.7 percent to QAR 7.2 billion (9M 2010: QAR 5.1 billion). EBITDA also grew strongly, in part impacted by the 100 percent consolidation of Tunisiana following the increase in shareholding earlier this year from 50 to 75 percent. EBITDA growth in 9M 2011
equated to 57.5 percent, representing an EBITDA performance of QAR 3.1 billion (9M 2010: QAR 2.0 billion).

Nawras – Oman

Nawras continues its marketing and cost efficiency initiatives commenced in the first half of the year as the Oman market remains highly competitive. This involves combining the strengths of its core mobile operation with its rapidly evolving fixed-line offering to drive new revenue opportunities. Nawras saw further growth in the fixed-line subscriber base, which reached 17,000 subscribers. Total mobile subscribers calculated on a year-on-year basis stood at 1.9 million (9M 2010: 2.0 million). Revenue in 9M 2011 increased by 4.8 percent to QAR 1.4 billion (9M 2010: QAR 1.4
billion) and EBITDA was stable at QAR 726 million (9M 2010: QAR 728 million).

Asiacell – Iraq

Asiacell demonstrated both further growth momentum and good operational progress in the exciting and evolving Iraqi marketplace. In 9M 2011 Asiacell’s customer base grew by 9.9 percent to 8.7 million (9M 2010: 7.9 million). This growth has translated into positive year-on-year revenue performance, with Asiacell revenue advancing 17.3 percent in 9M 2011 to QAR 4.3 billion (9M 2010: QAR 3.7 billion) while EBITDA increased by 9.1 percent to QAR 2.3 billion (9M 2010: QAR 2.1 billion), impacted by a one-off provision in Q3 2011.

Qtel will publish its 9M 2011 financial statement on its website, accessible at: www.qtel.qa

For further information:
Qtel Group Investor Relations
[email protected]