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“The Qtel Group has realized excellent growth in revenues, continued strong EBITDA and net profit for the full year 2007. The Group’s subscriber base has grown from 1.72 million at December 31, 2006 to over 16 million at December 2007 – an increase of over 850%,” said Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel.
For the full year 2007, Group revenues reached QR 10,373 m, a year on year increase of 134.7% (2006 – QR 4,420 m) EBITDA reached QR 5,172 m, an increase of over 97.5% (2006 – QR 2,619 m) and the Group reported a net profit of QR 1,878 m (2006 – QR 1,646 m). Net profit attributable to Qtel’s shareholders was QR 1,674 m (2006 – QR 1,692 m)
“The year 2007 was a transformative one for Qtel – characterized by many partnerships and acquisitions in the MENA and Asia regions. These activities have broadened Qtel’s geographic presence to 16 countries (2006 – 2 countries) with the ability to reach over 560 million people. With 16 million consolidated subscribers, the Group portfolio now includes a balanced mix of cash generating and growth assets.
“Sources of revenue were driven by wireless services, representing QR 9,054 m (87%) of our total revenue. Qatar, Kuwait and Algeria contributed 43%, 21% and 10% of our total revenues respectively. Our EBITDA has remained strong in all our operations, and in particular the operations in Qatar, Kuwait, Tunisia and Iraq have contributed 56%, 22%, 8% and 7% respectively to the Group EBITDA,” Dr. Nasser Marafih, CEO, Qtel said.
Consolidated subscribers of 16.4 million and proportionate subscribers of 7 million have also grown exponentially. Of the consolidated subscribers, Qatar, Algeria, Iraq and Tunisia represent 9%, 28%, 26% and 22% respectively.
“Keeping with our financial performance and with consideration to our ability to capture future growth, the Board of Directors would recommend to the General Assembly a total annual cash dividend of QR4.00 per share (2006 QR10 per share) and one bonus share for every ten shares held (10% bonus share). After the deduction of the interim dividend paid in August 2007 (QR 2.00 per share), a final dividend of QR 2.00 will be paid. The cash dividend represents 40% of the share face value. We have made a calculated decision to re-invest some of our profits back into the business in order to fuel the continued growth, which will enhance long term shareholder value”, the Chairman, Qtel said.
The transformational growth of the group business in 2007 has been completely financed through bank debt amounting to approximately US $ 5 billion, without any incremental equity injected into the company. Qtel is currently positioned for significant future growth, which can be achieved through further investments in the business. In order to realize the future growth strategy, and to optimize the capital structure, the Board of Directors has decided to recommend to the General Assembly to increase the capital of the company by 33.3% by issuing rights of one for every three shares held, after issuance of bonus shares, for QR160 per share, subject to necessary regulatory approvals for terms and timing.
"We believe that the diversified and balanced portfolio of assets in the Qtel Group represents a good growth opportunity and solid investment opportunity for its investors.
“2007 will be remembered as the year that Qtel transformed into regional telecommunications leader. In order to support the Qtel Board in managing the enlarged group going forward, Qtel has established a separate entity - Qtel International which will provide strategic guidance and management services to Qtel group’s operations worldwide and will also drive value from our enlarged scale,” the Chairman, Qtel said.
The Chairman and the Board of Directors of Qtel have appointed Sheikh Mohammed Bin Suhaim Al Thani to be the Chairman of Qtel International. Sheikh Mohammed will continue to serve as the Deputy Chairman of the Board of Directors of Qtel.
“I look forward to 2008 as we continue to enhanc ce shareholder value by leveraging our scale and capitalizing on strategic investment opportunities,” said Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel.
Qtel will publish its complete financial statements on its website at www.qtel.com.qa
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