KUWAIT CITY, April 5: Wataniya Telecom posted a net profit of KD108.3 million in 2009 as against KD82.4 million in 2008. This was announced during the company’s General Assembly meeting held Monday at the Kuwait Sheraton Hotel.
In making the announcement, Wataniya Telecom Chairman H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani said the substantial rise in earnings was the result of hard work, dedication and commitment on the part of everyone in the company from the management and staff down to support personnel.
Before he proceeded with his speech, he announced the listing of Wataniya Telecom in Qatar’s Stock Exchange market; a step taken, he said, to reinforce and solidify Wataniya’s leading position and pave the way for aspiring shareholders to own Wataniya stocks, trusting in its strong performance and value.
“2009 was a successful year for Wataniya Telecom. We were not only able to effectively deal with continued competitive pressures particularly in our home market in Kuwait, but also delivered continuing positive results in our other properties, and adding to this the successful launch of our operations in Palestine, we look forward to 2010 and seize on opportunities to further develop as a group and expand our customer base which stands today at over 15.2 million,” he said.
He also added that despite the challenges posed by the global economic crisis and increasingly competitive markets, Wataniya Telecom was still able to deliver powerful results and has continued to drive innovation and offer exceptional service for its valued customers.
“The company’s outstanding achievements in 2009 validated many of the vital strategic decisions we have taken, reinforcing the importance of our customer-centric approach and demonstrating the sustainable value of our investments in people and technology.  2009 also marked a special occasion, that of Wataniya’s 10th anniversary of operations in Kuwait and we share our joy and happiness by celebrating the momentous occasion with everyone living in the country – citizens and expatriates alike.
Of several operations, Wataniya Kuwait, he said, continued to deliver the largest proportion of revenue at 48 percent of total consolidated revenues, while Algeria marked the highest growth in customer numbers at 8.0 million. Tunisia has raised its market share to 5.21 million customers by end 2009 and operations in Palestine that commenced in 2009 have witnessed remarkable success in which customer base has reached 0.11 million and is expected to achieve further growth.
Overall, he said, Wataniya has continued to make significant operational and financial progress throughout 2009, delivering a total revenue of KD475.5 million for the year, with consolidated net profit of KD108.3 million, a substantial increase over that of the previous year’s KD82.4 million, and a consolidated customer base increase of 15.2 million, compared to 10.9 million at the end of 2008. “This is because more and more people are choosing Wataniya Telecom as their preferred service provider,” he added.
Sheikh Abdulla also said that the nexus in the company’s efforts in 2009 was its drive to reinvent its services across a new, segmented strategic model, where extensive research was carried out to better understand its customers and their needs, and reshaping its product and service portfolio to best meet their expectations. “As a result, we are already seeing stronger demand from customers owing to this initiative, in addition to higher customer satisfaction due to the more targeted nature of our segmented offerings.”
“We are constantly aiming at reinforcing our leadership position and creating new revenue streams through essential network upgrades. In particular, we see strong potential growth in data and value added services, and thus has invested in building a robust infrastructure necessary to recognize these opportunities,” he said adding, in Kuwait, we have upgraded our HSUPA network to support higher speeds for our customers and have also deployed a new network to manage the increasing volume of data traffic.”
Sheikh Abdulla also disclosed that Wataniya has completed the acquisition of Fono, a leading mobile retailer with sales points across the entire country. He said that integrating Fono’s quality after-sales service with its own unique approach to delivering outstanding customer experiences has helped the company to add significant value to its brand.
In conclusion, Sheikh Abdulla said that Wataniya has built its strategy on three main pillars: innovative services, superior network quality and truly exceptional customer service; and each of said areas proved essential in pushing the company’s business forward, bringing it closer to its customers and enabling it to maximize the value being realized across its diverse markets. “We are well placed to continue to deliver value in our products and services in 2010 and far into the future.”
The Wataniya Telecom Chairman later presided over the General Assembly meeting where he presented a 13-point agenda for approval, such as: distribution of profits of 50 percent of nominal value (50 fils) per share, to shareholders registered at the date of the General Assembly; authorizing the Board of Directors to buy back company shares, not exceeding 10 percent of total shares, according to the Ministry of Trade and Industry resolution No. 10/1987 and it amendments; and the issuance of bonds, which should not exceed the capital of the company, for public subscription, among others.
Also discussed and approved was the appointment of Price-Waterhouse Cooper as one of the auditors for financial year 2010, and the re-appointment of Mahmoud Al Kandari and Waleed Al Rowdan to the Board of Directors.
Wataniya Telecom Group Highlights:
n Total customer base increased to 15.2 million at close of 2009, versus 10.9 million in 2008 for a growth of 38.8 percent.
n Returns to shareholders increased with consolidated earnings per share for the year 2009 of 216 fils (61 cents), compared with 164 fils (47 cents) per share for the same period in 2008.
n Revenues in 2009 totalled KD 475.5 million (USD$1.67 billion), compared with revenues for the same period in 2008 of KD 476.0 million (USD$1.68 billion).
n EBITDA for 2009 was KD 190.2 million (USD$668.4 million), compared with EBITDA of KD 201.3 million (USD$707.3 million) for the same period in 2008.
Kuwait: Wataniya Kuwait's customer base increased to 1.54 million customers at the end of Q4 2009, an increase of 17% on Q4 2008. Revenues for the year 2009 were KD 200.9 million (USD 705.9 million) compared with revenues for the same period in 2008 of KD 226.6 million (USD 796.4 million). EBITDA for the year 2009 was KD 95.7 million (USD 336.5 million) compared with EBITDA for the same period in 2008 of KD 120.5 million (USD 423.4 million). Net profit for year 2009 grew to KD 108.8 million (USD 382.5 million), compared with net profit for the same period last year of KD 84.3 million (USD 296.3 million). In June a pending legal case with the Ministry of Communication was decided in favour of the company which resulted in an exceptional gain in net profit of KD 49.8 million.
Tunisia:  The Tunisiana customer base at the end of Q4 2009 stood at 5.21 million customers: an increase of 22.4% on Q4 2008. Revenues for the year 2009 were KD 102.3 million (USD 359.6 million), similar to revenues for the same period in 2008 of KD 99.2 million (USD 348.6 million). EBITDA for the year 2009 increased to KD 55.2 million (USD 194.0 million) from 51.9 million (USD 182.4 million) for the same period last year. The net attributable profit to Wataniya Telecom for the year 2009 also increased to KD 23.7 million (USD 83.4 million) compared with KD 21.2 million (USD 74.6 million) for the same period in 2008.    
Algeria:  The Nedjma customer base at the end of Q4 2009 was 8.0 million customers: an increase of 57.1% on Q4 2008. Nedjma posted year on year revenue growth with revenues for the year 2009 standing at KD 141.4 million (USD 497.1 million) compared with revenues of KD 130.5 million (USD 458.7 million) for the same period in 2008. EBITDA for the year 2009 was KD 46.5 million (USD 163.4 million), an increase of 23.8% on KD 37.6 million (USD 132.0 million) for the year 2008. The total net loss for the year 2009 was KD 9.8 million (USD 34.5 million) compared with net loss of KD 13.2 million (USD 46.3 million) for the same period in 2008. The net attributable loss to Wataniya Telecom in the year 2009 was KD 7.0 million (USD 24.5 million) compared with a net attributable loss of KD 9.4 million (USD 32.9 million) for the same period in 2008.
Saudi Arabia:  Bravo’s customer base reached 0.19 million at the end of Q4 2009, an increase of 24% from Q4 2008. Revenues in the year 2009 increased to KD 20.1 million (USD 70.6 million) from KD 14.1 million (USD 49.4 million) for the same period in 2008. The total net loss for the year 2009 was KD 11.1 million (USD 39.0 million) compared with KD 11.6 million (USD 40.9 million) in the comparable period in 2008. The net attributable loss to Wataniya Telecom for the year 2009 is KD 6.2 million (USD 21.7 million), a 5% improvement compared with the loss of KD 6.5 million (USD 22.8 million) for the year 2008.
Maldives:  Total customers at the end of Q4 2009 were 0.10 million. Revenues were KD 7.7 million (USD 27.0 million) for the year 2009 compared with KD 5.6 million (USD 19.6 million) for the same period in the year 2008. EBITDA for the year 2009 was KD 0.42 million (USD 1.5 million) compared with an EBITDA loss of 0.07 million (USD 0.25 million) for the same period in 2008. The net attributable loss for the year 2009 is KD 3.3 million (USD 11.9 million) compared with the loss of KD 3.6 million (USD 13.2 million) for the same period in 2008.
Palestine: In November 2009 Wataniya Telecom commenced operations in Palestine. Total customers at the end of 2009 was 0.11 million. Revenues were KD 0.6 million (USD 2.1 million) for the year 2009. The net loss for the year 2009 was KD 4.2 million (USD 14.7 million).