Vodafone Qatar Turns Profitable in 2018 with a Net Profit of QR 117.8 Million

Ø  Profits: the company became profitable for the first time since its inception recording profits of about QR117.8 million by the end of 2018, compared to a loss of about QR256 million in the same period of 2017. Vodafone’s fourth quarter profit amounted to about QR42.38 million, while its earnings per share amounted to about QR0.14 for 2018, versus a loss per share of QR0.22 for 2017. It should be noted that the company has reduced its share capital by 50% during last year’s fourth quarter by reducing the nominal value of the share from QR10 to QR5 with the aim of eliminating accumulated losses.

 

Ø  Revenue: the company's revenues increased by 5.1% to QR 2,101.1 million in 2018, compared to QR 1,481.0 million. This improvement comes as a result of increasing the customer base and monthly subscriptions by about 24% during the last year, as well as the growth in the average revenue per user (ARPU), which climbed to QR105 per year per each customer, from QR99.5 in 2017.

Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 8.5% in 2018 to reach QR584 million, compared to QR538 million by the end of 2017.

 

Ø  Shareholders’ equity: increased by 2.66% in the last quarter of 2018, compared to the previous year as a result of the improved results of the company. Also, the book value of the share amounted to QR5.43 (QR5 being the nominal value per share).

 

Ø  Dividend distribution: The Board of Directors recommended a cash dividend of 5% (3.03% dividend yield) of the nominal value of the share, i.e. QR0.25 per share, with a net profit of 179%.

 

Ø  Market ratios: Vodafone’s share is currently traded at a PE multiple of 59.0 times and a book value multiple of 1.50 times.