MTC ANNOUNCES REVENUES OF KD 849.15 MILLION

Q3 2006 Earnings Press Release

MTC ANNOUNCES REVENUES OF KD 849.15 MILLION

NET INCOME OF KD 223.18 MILLION OR 180 FILS PER SHARE

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006

KUWAITCITY, October 18, 2006

Mobile Telecommunications Company K.S.C (MTC – KSE Ticker: TELE, RIC: TELE.KW, Bloomberg Code: TELE.KK) announces its 2006 results for the nine months ending September reflecting the following:

 

Q3 2006 Financial Highlights

 

 

Key Events of the Third Quarter

 

27 September 2006

Celtel launches One Network, world’s first borderless mobile phone network

MTC subsidiary Celtel International announced the launch of One Network, the first ever borderless mobile network in the world. This allows customers to move freely across geographic borders without roaming call surcharges and without having to pay to receive incoming calls...

 

12 September 2006

MTC wins 4 prestigious industry awards

MTC Group won four prestigious industry awards including Best Middle East Mobile Operator of the Year, Best Telecom Deal of the Year and Best New Non-Voice Service at the first annual CommsMEA telecom awards. Dr. Mo Ibrahim, Chairman of MTC subsidiary Celtel in Africa, was also honored with the Lifetime Achievement Award...

 

02 August 2006

Nationwide coverage of the HSDPA 3.5G service throughout Bahrain

MTC Group announced that it has successfully offered nationwide High Speed Download Packet Access (HSDPA/3.5G) service throughout the Kingdom of Bahrain through its subsidiary, MTC-VodafoneBahrain. This technology is the fastest wireless broadband access technology using mobile phones. HSDPA dramatically increases data rates by up to five times that of existing 3G networks, and 15 times that of GPRS networks, with data rates of up to 1.8 M bits per second...

 

26 July 2006

Landmark USD 4 Billion credit facility to fund MTC's future growth

Mobile Telecommunication Company K.S.C. signed the general syndication agreement for the US$ 4 billion credit facility that will be used to fund MTC’s future acquisitions and general corporate needs.

 

To read more please visit www.mtctelecom.com

 

Select Operating and Financial Highlights

 

MTC Group is operating in 20 countries on 2 continents serving over 24.90 million customers as at September 30, 2006, an increase of 100% compared to the same period last year.The company’s remarkable customer growth is primarily driven by its African operations; and its enviable financial performance is driven by its more mature Middle Eastern operations.The company reported that its revenues exceeded KD 849.15 million (USD 2.92 billion) during the first nine months of 2006, an increase of 115% relative to the same period in 2005.MTC's performance figures have been driven by organic growth, new license awards, and acquisitions over the past three and a half years since the company embarked on its profitable expansion strategy.

"The Group’s consolidated net profit was KD 223.18 million (USD 767.46 million) for nine months. These figures translate to earnings per share of 180 Fils (62 cents). This is yet another period of strong and sustainable growth in both the top and bottom lines,” said Mr. Asaad Ahmed Al-Banwan, Chairman of MTC. “While MTC’s EBITDA was KD 416.57 million (USD 1.43 billion) showing a great deal of Group operating efficiencies and synergies during this growth phase, and a testament to our management of a company of this size with operations at various stages of their life cycles,” added Mr. Al-Banwan.“The acquisition of the shares we did not own in Mobitel, Sudan (61%) in February coupled with the 65% of Vmobile, Nigeria that we recently concluded have significantly enhanced our portfolio with strong cash generating and high growth operations. We are continuously on the look out for new profitable opportunities. The kingdom of Saudi Arabia has launched a process that will lead to a 3^rd license award and we will participate. We are also evaluating a couple of smaller opportunities in Africa."

Customers

MTC Group is serving a growing customer base of 24.9 million customers in the Middle East and Africa, reflecting a year-on-year increase of almost 100% due to organic growth and acquisitions.The company’s subsidiaries are consistently the leading operators in the overwhelming majority of the 20 countries where MTC operates.

 

Managed Customers (000s)	Q3 2006	Q3 2005	Growth

      Bahrain 279 190 47% Iraq 2,441 925 164% Jordan 2,364 1,732 36% Kuwait 1,513 1,394 9% Lebanon 568 501 13% Sudan 2,462 -   Middle East Total 9,626 4,742 103%         Burkina Faso 441 238 86% Chad 308 182 70% CongoBrazzaville 570 304 87% Democratic Republic of Congo 1,705 949 80% Gabon 479 288 66% Kenya 1,743 1,461 19% Madagascar* 302 -   Malawi 312 151 107% Niger 343 166 107% Nigeria** 5,993 -   Sierra Leone 202 137 48% Tanzania 1,349 738 83% Uganda 381 233 64% Zambia 1,144 530 116% Celtel Total 15,270 5,375 184%         MTC Group Total 24,897 12,451 100%

 

*MTC acquired Madacom in December 2005.

** MTC acquired V-Mobile in May 2006.

 

Financial Results

 

MTC recorded consolidated revenues of KD 849.15 million (USD 2.92 billion) for the nine months ended September 30, 2006, an increase of 115% over the same period in 2005.During the nine months, the consolidated EBITDA increased by 78% over same period last year to reach KD 416.57 million (USD 1.43 billion), a margin of 49%.MTC has announced consolidated net income of KD 223.18 million (USD 767.46 million), an increase of 64% compared to the same period last year, representing earnings of 180 Fils (USD 0.62) per share.

 

 

Consolidated Results	KD		USD		Growth
	Q3 2006	Q3 2005	Q3 2006	Q3 2005
Revenues	849.15	396.23	2,920	1,355

115% EBITDA 416.57 235.89 1,432 806.73 78% EBITDA Margin 49% 59% 49% 59%   Net Income 223.18 136.43 767.46 466.60 64% EPS 180 Fils 140 Fils 62 Cents 48 Cents 29%

 

Dr. Saad Al-Barrak, Managing Director-Deputy Chairman of MTC said: “The results we have announced today are a testimony to our company’s achievements so far this year and I confirm to you that the comparative growth we have achieved over the last few years indicates great aspirations and proper execution of well-thought out plans.  Our operational and financial strategies are aimed at ensuring that MTC maintains the dynamic qualities that have brought us to where we are today.I am very grateful to all MTC employees whose dedication and hard work formed the cornerstone of this company.” Dr. Al-Barrak added: “Integrating all of our operations will yield more benefits and better results in the future. The transformation of MTC into a global company will come as a result of disciplined execution of vision and the achievement of ambitious objectives.We have put in place a corporate governance model complemented by processes and initiatives to manage growth and derive the synergies that give us a competitive advantage. Ensuring that we address all stakeholders is complemented by our commitment to our Corporate Social Responsibility and our adherence to best practices in all our activities and commitments.What sets us apart and distinguishes MTC is the power of execution,” concluded Dr. Al-Barrak.

 

Sam M. Deeb, MTC Group Chief Financial Officer commented: “MTC is becoming a telecommunications powerhouse.We strive to accomplish the transformation of MTC into a global company without compromise.The rapid growth both organically and through acquisitions has created some challenges and opportunities that we will leverage to be among the best companies in the world.MTC today is on track to conclude the year with yet another set of record financial results.” Mr. Deeb added: “MTC will extend the existing $750 million Murabaha agreement for one year from its maturity on December 18, 2006. We have mandated the same leading global and regional bankswho will fully underwrite the facility and syndicate it. MTC operates in some very challenging environments where the company has to be very diligent to maximize total return to all stakeholders.

-End-

 

 

About MTC Group

Mobile Telecommunications Company (MTC) is the pioneer of mobile services in the Middle East and now a major player in Africa. The company was established during 1983 in Kuwait as one of the region’s first mobile operators, and since the initiation of our “3x3x3” expansion strategy in 2002, we have expanded rapidly becoming the 4^th largest company in the world with a footprint in 20 countries..

As a leading mobile and data services operator in six Middle Eastern and 14 sub-Saharan African countries with 12,000 employees, weprovide a comprehensive range of mobile voice and data services to over 24.90 million individual and business customers.

We operate in Kuwait and Bahrain as mtc-vodafone, in Jordan as Fastlink, in Iraq as mtc-atheer, in Lebanon as mtc-touch, in Sudan as Mobitel and in 14 sub-Saharan countries in Africa as Celtel: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Sierra Leone, Tanzania, Uganda and Zambia and most recently Nigeria.

The Parent Company and its subsidiaries (the Group) provide mobile telecommunication services under licenses from Governments of the countries in which they operate; purchase, deliver, install, manage and maintain mobile telephone and paging systems; and invest surplus funds in investment securities.

The group recorded revenues of KD 849.15 million (USD 2.92 billion) and net profit of KD 223.18 million (USD 767.46 million) during the nine months ended September 30, 2006.The Kuwait Investment Authority owns 24.6% of the company’s shares.

The Mobile Telecommunications Company KSC (the Parent Company) is a Kuwaiti shareholding company and its shares are traded on the Kuwait Stock Exchange. The Company’s share price as at October 16, 2006 was 3380Fils, giving a Kuwait Stock Exchange market valuation for MTC of KD 4.27 billion (USD 14.73 billion).Consolidated earnings per share for the first 9 months of 2006 were 180 Fils.

The authorized, issued, and fully paid up share capital of the Parent Company as at September 30, 2006 consists of 1,261,819,591 shares of 100 Fils each.

 

1 USD = KD 0.28955