Wataniya Telecom (National Mobile Telecommunications Company K.S.C. – Ticker: (NMTC) announces its Q3 2005 financial results with the Company posting a consolidated net profit of KD 39.2 (USD 133.5 million) for the first nine months or 91 fils (31 cents) per share, an increase of 32% compared to KD 29.8 million (USD 101.5 million), or 74 fils (25 cents) per share earned in the same period for 2004.
“The company achieved excellent numbers particularly in Algeria and Iraq where we exceeded the one million subscriber mark in each operation during this quarter. This is exceedingly good news for the group, said Faisal Al Ayyar, Chairman of Wataniya Telecom.” Our focus on sound investments and technological advancements in the markets where we operate continues to be our main focus as we identify and pursue future opportunities in the telecommunications and related sectors,” he added. “We are also at a phase in the company’s development that we are ready to capitalize upon the core values, and the solid reputation we’ve developed with the financial community in the MENA region,” he concluded.
Wataniya Telecom Group Highlights:
§ Revenues for the third quarter grew to KD 97.1 million (USD 330.8 million), an increase of 16% compared to last quarter revenues of KD 83.5 million (USD 284.4 million), and an increase of 56% compared to the same period in 2004.
§ Total active customers increased to 5,208,677 compared to 3,916,603 from the last quarter, an increase of 33%.
§ Consolidated earnings per share are 91 fils for the year as of September 30, 2005.
3rd Quarter 2005 Wataniya Telecom Group Highlights:
REVENUES
KD 97.1 million (USD 330.8 million)
EBITDA
KD 36.5 million (USD 124.3 million)
NET PROFIT
KD 13.6 million (USD 46.3 million)
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Wataniya Telecom Posts KD 39.2 Million/page2
Kuwait: Wataniya Telecom experienced an overwhelming response to its prepaid roaming initiative, facilitating its customers needs as they travelled during summer vacation. Wataniya Telecom’s customer base increased to 928,444 active customers. Revenues for the third quarter were KD 39.6 million (USD 134.9 million) compared to KD 34.7 million (USD 118.2 million) in the same period of 2004. EBITDA for the 3rd quarter of 2005 was KD 17.2 million (USD 58.9 million), or a 43% EBITDA margin, compared to KD 14.9 million (USD 50.7 million), a 43% margin for the 3rd quarter of 2004. Net profit for the 3rd quarter of 2005 was KD 18.2 million (USD 62.0 million), an increase of 72% compared to KD 10.6 million (USD 36.2 million) for the 3rd quarter of 2004
Tunisia: Tunisiana experienced a steep market share increase with over 80% share of gross additions during the quarter and has attained a 40% market share. Revenues for the 3rd quarter of 2005 were KD 27.1 million (USD 92.3 million), an increase of 43% from Q3 2004 or KD 19.1 million (USD 64.7 million). EBITDA was KD 10.8 million (USD 36.8 million), an increase of 38% compared to KD 7.9 million (USD 26.6 million), for Q3 2004. The net attributable profit to Wataniya Telecom from Tunisiana in Q3 is KD 0.8 million (USD 2.7 million).
Iraq: Asiacell has achieved an active customer base of over 1.1 million subscribers, and also launched service in Baghdad on July 22nd. Asiacell will be extending its network to the southern part of the country in the 4th quarter. Revenues for the 3rd quarter of 2005 were KD 17.4 million (USD 59.3 million) compared to KD 7.7 million (USD 25.9 million) for the 3rd quarter 2004. EBITDA was KD 9.0 million (USD 30.7 million), versus KD 4.3 million (USD 14.6 million) in the 3rd quarter 2004. The net attributable loss to Wataniya Telecom from Asia-Cell in Q3 is KD 0.5 million (USD 1.7 million). Asiacell has invested over $300 million on its network and is depreciating its assets 80% over a 30 month period.
Algeria: The country’s expanding economy has resulted in Nedjma increasing its active customer base to 1,164,455 subscribers, achieved in just over one year. In keeping with its strategy of providing the most technologically advanced solutions for Algerians, Nedjma is the first in the market to complete a successful trial of Push To Talk over Cellular (PoC) during this quarter, as well as being the first to launch GPRS roaming on its 100% EDGE capable network. Revenues for the 3rd quarter of 2005 were KD 12.7 million (USD 43.3 million).The net attributable loss to Wataniya Telecom in Q3 is KD 3.0 million (USD 10.2 million).
Saudi Arabia: Bravo, the first iDEN network in the GCC and the Kingdom of Saudi Arabia launched service in the western sector on July 5, 2005. Specialized in providing communications solutions for groups through its Push-To-Do services, Bravo has expanded its service coverage to include Makkah, Medina, Jeddah, Dammam and Dhahran, including the Makkah-Jeddah highway. The regulator will release the remaining frequency before year-end to allow Bravo to cover Riyadh and other areas.
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Wataniya Telecom Posts KD 39.2 Million/page3
Maldives: Wataniya Telecom Maldives’ state-of-the-art network utilizing GPRS/EDGE and soft switch technology was launched on August 1st, 2005. The company already has a subscriber base of 10,198 and provides coverage to more than 90% of the population in the Maldives.
Consolidated Customers Status at 30th September 2005
Active Customers
Kuwait
Tunisia
Iraq
Algeria
Saudi Arabia
Maldives
Total Active Customers
Post-paid
101,044
26,504
-
7,625
5,062
3,067
143,302
Pre-paid
827,400
1,960,414
1,113,600
1,156,830
--
7,131
5,065,375
Total Customers
928,444
1,986,918
1,113,600
1,164,455
5,062
10,198
5,208,677
Ownership
100%
50%
40%
71%
38%
100%
Proportional Customers
928,444
993,459
445,440
826,763
1,924
10,198
3,206,228
The Company’s share price as of September 30, 2005 was KD 2.320, giving a Kuwait Stock Market valuation for NMTC (Wataniya Telecom) of KD 1,012.4 million (USD 3.4 Billion). Consolidated earnings per share for the first quarter of 2005 were 91 fils.
About Wataniya Telecom:
Commercially launched in December 1999, Wataniya Telecom is part of Kuwait Projects Company (KIPCO), and has been a driving force in increasing the mobile communications market in Kuwait to more than 90 per cent of the population. Wataniya Telecom is actively expanding its presence in the region serving more than 5.2 million customers in countries with a combined total population exceeding 92 million.
Wataniya Telecom has operations in Kuwait, Iraq, Tunisia, Algeria, the Maldives, and Saudi Arabia. The company provides a wide range of leading-edge wireless voice and data services, delivered with high quality, designed to cater to the demand of today’s discerning customer.
About Wataniya International:
Wataniya International is responsible for leading the pursuit of global expansion opportunities, as well as leveraging technical, financial and commercial synergies within the Wataniya Telecom group of mobile operators.
