KUWAIT CITY, Aug 11: Wataniya Telecom (National Mobile Telecommunications Company KSC — Ticker: NMTC) announces its first half 2010 financial results with the Company posting Revenue of KD 260.5 million ($900.0 million) representing growth of 12.0 percent compared to KD 232.8 million ($804.4 million) for the same period in 2009. EBITDA increased by 10.2 percent to KD 100.6 million ($347.5 million) compared to the first half 2009 of KD 91.3 million ($315.4 million).
Additionally the Company has posted a consolidated Net Profit of KD 35.8 million ($123.9 million) for first half 2010, compared to the KD 78.8 million ($272.3 million) in same period 2009. This equates to a consolidated earnings per share of 72 fils (249 cents), compared to the 157fils (542 cents) per share earned for the same period last year. Net Profit for 2009 included a reversal of provision which resulted from winning the legal case of the MOC license fee.
HE Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Chairman of Wataniya Telecom commented: “The first half of 2010 was another thriving period for Wataniya Telecom. Thanks to our successful, effective strategies to deal with competitive pressures in our home market of Kuwait, while our performance in other key markets continues positively. In addition to our growing customer base that continues to expand and as of first half of 2010 stands at over 15.8 million, an increase of 33.0 percent over the same period in 2009.”

Wataniya Telecom Group Highlights:
n Total customer base increased to 15.8 million in the first half of 2010, versus 11.9 million at the same period in 2009: growth of 33.0 percent.
n Revenues for the first half of 2010 amounted to KD 260.5 million ($900.0 million), compared to KD 232.8 million ($804.4 million) for the same period in 2009: growth of 12.0 percent
n EBITDA for first half of 2010 was KD 100.6 million ($347.5 million), compared to EBITDA of KD 91.3 million ($315.4 million) for the same period in 2009: growth of 10.2 percent.
n Consolidated earnings per share for first half of 2010 was 72 fils (249 cents), compared to 157 fils (542 cents) per share for the same period in 2009.
Kuwait: Wataniya Kuwait’s customer base increased to 1.67 million customers at the end of Q2 2010, an increase of 19.1 percent on Q2 2009. Revenues for first half were KD 107.5 million ($371.5 million), an increase of 5.1 percent compared to revenues for the same period in 2009 of KD 102.5 million ($354.3 million). EBITDA for the first half was KD 46.8 million ($161.6 million) compared to EBITDA for the same period in 2009 of KD 47.1 million ($162.7 million). Net profit was at KD 34.3 million ($118.7 million), compared to net profit for the same period in 2009 of KD 82.9 million ($286.6 million). Note that in Q2 2009, Wataniya Telecom won the legal case against the Ministry of Communications regarding network license fees, which enabled the company to reverse the previously recorded accruals (net of related expense) resulting in an increase in net profits.
Tunisia: The Tunisiana customer base at the end of Q2 2010 stood at 5.56 million customers: an increase of 26.4 percent on Q2 2009. Revenues for first half of 2010 were KD 52.3 million ($180.7 million), compared to revenues for the same period in 2009 of KD 47.6 million ($164.3 million): an increase of 10.0 percent. EBITDA for first half increased to KD 27.3 million ($94.3 million) from KD 25.8 million ($89.2 million) for the same period last year representing an increase of 5.6 percent. The net attributable profit to Wataniya Telecom increased in first half of 2010 to KD 12.2 million ($42.2 million), an increase of 14.1 percent compared to KD 10.7 million ($36.9 million) for the same period in 2009.
Algeria: The Nedjma customer base at the end of Q2 2010 was 8.02 million customers: an increase of 38.6 percent on Q2 2009. Revenues for first half 2010 were at KD 81.1 million ($280.4 million) an increase of 16.9 percent compared to revenues of KD 69.4 million ($239.9 million) for the same period in 2009. EBITDA for the first half was KD 30.0 million ($103.8 million), an increase of 36.6 percent on KD 22.0 million ($76.0 million) for the same period in 2009. The total net loss for the first half was KD 1.3 million ($4.6 million) compared to the total net loss of KD 7.1 million ($24.6 million) for the same period in 2009. The net attributable loss to Wataniya Telecom for first half was KD 1.0 million ($3.3 million) compared to a net attributable loss of KD 5.1 million ($17.5 million) for the same period in 2009.
Saudi Arabia: Bravo’s customer base reached 0.20 million at the end of Q2 2010, an increase of 13.0 percent from Q2 2009. Revenues in first half 2010 increased to KD 11.1 million ($38.3 million) from KD 9.5 million ($32.7 million) for the same period in 2009. The total net loss for the first half was KD 3.8 million ($13.1 million) compared to a total net loss of KD 5.3 million ($18.3 million) for the same period in 2009.The net attributable loss to Wataniya Telecom for the first half was KD 2.1 million ($7.3 million), a 28.6 percent improvement compared to the loss of KD 3.0 million ($10.2 million) for the same period in 2009.
Maldives: Total customers at the end of Q2 2010 were 0.10 million. Revenues were KD 4.6 million ($16.0 million) for first half 2010 compared to KD 3.8 million ($13.1 million) for the same in period 2009. EBITDA for the first half was KD 0.7 million ($2.3 million) compared to an EBITDA of 0.1 million ($0.4 million) for the same period in 2009. The net attributable loss for the first half is KD 2.8 million ($9.6 million) compared to the loss of KD 1.8 million ($6.1 million) for the same period in 2009.
Palestine: In November 2009 Wataniya Telecom commenced operations in Palestine. Total customers at the end of Q2 2010 was 0.24 million. Revenues were KD 3.8 million ($13.1 million) for the first half of 2010. Total net loss for the first half was KD 8.7 million ($30.1), and the net attributable loss for the first half was KD 5.0 million ($17.2 million).
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Profit and Loss by Operation in KD Millions
Countries Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010

Countries Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Kuwait (Wataniya Telecom)
Revenue 53.0 48.3 52.5 52.8 54.7
Ebitda 24.3 21.9 24.7 21.7 25.1
% Ebitda 46% 45% 47% 41% 46%
Net Profit 65.3 14.1 12.1 14.7 19.6
Tunisia (Tunisiana)
(50% on Proportionate consolidation method)
Revenue 25.3 28.4 26.4 26.0 26.3
Ebitda 13.8 15.8 13.6 13.6 13.7
% Ebitda 55% 56% 52% 52% 52%
Net Profit 5.5 7.3 5.8 6.1 6.1
Algeria (Nedjma)
Revenue 36.2 35.7 36.3 37.8 43.3
Ebitda 11.9 13.2 11.3 13.0 17.0
% Ebitda 33% 37% 31% 34% 39%
Net Profit (0.0) 0.8 (3.5) (0.9) (0.4)
Saudi Arabia (Bravo)
Revenue 4.9 4.7 5.9 5.5 5.6
Ebitda (0.7) (0.6) (0.0) 0.0 (0.3)
% Ebitda -15% -13% 0% 0% -6%
Net Profit (2.6) (2.7) (3.0) (1.7) (2.1)
Maldives (Wataniya Telecom Maldives)
Revenue 1.8 1.8 2.1 2.4 2.2
Ebitda 0.0 (0.0) 0.3 0.4 0.3
% Ebitda 1% 0% 15% 16% 12%
Net Profit (0.9) (1.0) (0.6) (0.6) (2.2)
Palestine (Wataniya Palestine)
Revenue - - 0.6 1.1 2.6
Ebitda - - (2.3) (2.0) (1.9)
% Ebitda - - - - -
Net Profit - - (3.9) (4.3) (4.4)
Total
Revenue 121.3 118.9 123.8 125.7 134.8
Ebitda 48.2 48.8 47.6 46.6 54.0
% Ebitda 40% 41% 38% 37% 40%
Net Profit(Consolidated) 61.7 16.7 6.9 13.3 16.6
Wataniya Attributable Net Profit 63.5 18.5 11.0 16.2 19.6
Monthly ARPU by Operation in Kuwait Dinar
Countries Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Kuwait
Post-paid 33.3 33.0 28.0 27.8 27.4
Pre-paid 8.3 7.3 7.4 7.1 7.2
Weighted average Arpu 11.5 10.7 10.7 10.4 10.4
Tunisia
Post-paid 13.4 12.0 11.9 11.1 10.4
Pre-paid 3.4 3.5 3.1 2.9 2.8
Weighted average Arpu 3.6 3.7 3.3 3.1 3.0
Algeria
Post-paid 9.0 8.2 8.0 7.8 8.1
Pre-paid 1.5 1.5 1.3 1.2 1.4
Weighted average Arpu 2.1 1.9 1.7 1.5 1.7
Saudi Arabia
Post-paid 8.5 8.3 9.1 8.7 8.4
Weighted average Arpu 8.5 8.3 9.1 8.7 8.4
Maldives
Post-paid 21.5 18.2 17.0 15.8 15.3
Pre-paid 3.8 3.6 3.4 3.4 3.5
Weighted average Arpu 4.4 4.2 4.1 4.2 4.4
Palestine
Post-paid - - 13.2 17.6 8.7
Pre-paid - - 1.9 1.9 3.1
Weighted average Arpu - - 2.1 2.3 3.5
Total Customers by Operation (In 000’s)
Countries Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010
Kuwait
Post-paid 185 230 245 259 272
Pre-paid 1,217 1,226 1,293 1,366 1,398
Total Customers 1,403 1,456 1,538 1,625 1,670
Tunisia
Post-paid 95 99 108 119 130
Pre-paid 4,304 4,708 5,103 5,281 5,432
Total Customers 4,399 4,808 5,211 5,400 5,562
Algeria
Post-paid 398 366 383 397 404
Pre-paid 5,386 5,573 7,650 7,879 7,612
Total Customers 5,784 5,939 8,033 8,276 8,016
Saudi Arabia
Post-paid 177 186 186 196 200
Total Customers 177 186 186 196 200
Maldives
Post-paid 4 5 6 7 10
Pre-paid 103 99 96 95 94
Total Customers 107 104 102 102 105
Palestine
Post-paid - - 2 6 21
Pre-paid - - 109 157 222
Total Customers - - 111 164 244