Sunday, Apr 29, 2012
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DUBAI (Zawya Dow Jones)--Qatar Telecom Q.S.C. (QTEL.DO), which competes against Vodafone Qatar in the Gulf state, Sunday posted a 12% decline in first-quarter net profit to 711.4 million Qatari riyals ($195.4 million), on foreign exchange losses in the telco's Indonesian unit--Indosat.
However, the net profit exceeded analyst forecasts. Egyptian investment bank EFG-Hermes had predicted net profit of QAR554 million, while Kuwait-based Global Investment House had penciled in QAR644.4 million.
Subscribers across all its operations as of end of March hit 84.4 million, a jump of 11.7% on the previous year as revenues for the quarter increased 7.6% to QAR8 billion.
QTel said that the Iraqi, Qatari, Algerian and Tunisian markets witnessed a sustained performance. QTel has a significant presence across the Middle East, North Africa and South East Asia, operating a portfolio of brands including Indosat, Asiacell, Wataniya, Nawras, Nedjma and Tunisiana.
QTel said last week that it will use cash to pay off debt due this year and doesn't have any "immediate" refinancing plans. The company also said last week that shareholders can subscribe to the company's $1.9 billion rights issue between May 13 and May 24.
QTel's board approved its planned 40% rights issue in March at QAR75 per share in a move that would increase the company's authorized share capital to QAR5 billion from QAR2 billion and help it fund acquisitions abroad. QTel, 55% owned by the government according to Zawya.com, is chasing a 19% stake in Iraq's Asiacell. Qtel is fast expanding across the region and wants to become one of the 20 biggest telcos by 2020.
Shares in QTel finished trading up 2.4% Sunday at QAR138.
-By Shereen El Gazzar, Dow Jones Newswires; +971 444 61684; Shereen.elgazzar@dowjones.com
(END) Dow Jones Newswires
29-04-12 1556GMT
