Leading Telecommunications Company Provides Guidance for 2009

Doha, Qatar,

The Annual General Meeting of Qatar Telecom (Qtel) QSC today approved the recommendation of the Board of Directors to issue a total annual cash dividend of QR 10 per share, representing 100% of the share face value.

Reflecting the theme of international development with firm roots in Qatar, Qtel elected to host the meeting at the iconic Museum of Islamic Art in Doha – the first time the venue has been used for an AGM.

Addressing the general assembly, His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel, outlined the strong progress achieved through the company’s growth strategy in 2008, and provided an overview of plans for the coming period.

His Excellency Sheikh Abdullah said: “For a number of reasons, 2008 was a very important year for The Qtel Group. It was a year when we continued to move into new markets and expand our presence in existing ones. It was also the year when we began to demonstrate the significant potential for value extraction from the assets we acquired over the course of our major expansion efforts since 2005.”

His Excellency continued, “Results from our more mature markets, principally Qatar and Kuwait, have helped us to report The Qtel Group’s highest ever annual net profit in 2008, despite pressures on the wider global economy, validating the resilience of our growth strategy. We remain confident that our strategy of growth in high potential markets, combined with developing operations in more mature markets, will prove pivotal for our long-term success.”

Given the substantial growth witnessed in recent years – which now sees the company present in 17 markets – Qtel will continue to exploit cost efficiencies, savings and synergies across the enlarged group. Significant benefits have already been achieved, particularly in purchasing, financing and customer-facing areas, and more are expected in the future.

Ongoing international development has also significantly enhanced Qtel’s knowledge and skills resources, according to information presented at the AGM.

“We are continuing to learn from the other operations within The Qtel Group, and continuing to share our experiences with them. The competitive landscape in Asia is different from that of the Middle East, and there are many lessons we can draw even as we face competition in our home market in 2009,” said His Excellency Sheikh Abdullah.

“Additionally, our energized focus on customer service and support has helped to transform us into a far leaner and more nimble organization. In 2008, we were able to launch new services and new promotions in some of the fastest times in Qtel’s history, reflecting our capacity for flexibility and response to the needs of our customers,” he added.

The Qtel Group’s increasing internationalization has driven positive returns for 2008. In total, 73 percent of group revenue now comes from outside of Qatar, with Qatar, Indonesia, Kuwait, Iraq and Algeria representing the Group’s five largest markets by revenue, contributing 27, 21, 15, 14 and 9 percent respectively.

This rapid development – for a company which only provided telecommunication services for a single nation, Qatar, in 2005 – reflects the impressive ambition and prudent management of The Qtel Group. Consolidated Group revenue increased 93 percent in 2008 to QAR 20.3 billion, nearly doubling 2007 revenue of QR 10.5 billion.

At the end of 2008, consolidated Group EBITDA stood at QAR 9.8 billion, while net profit attributable to shareholders also increased during 2008, closing the year 36 percent higher than in 2007 to stand at QAR 2.3 billion.

Confirming its guidance for the year ahead, at a Group level Qtel expects:

• Revenue to increase in 2009 in the range of 20 to 22 percent year-on-year,
• EBITDA to increase in 2009 in the range of 18 to 20 percent year-on-year.
• Net Profit Attributable to Shareholders to increase in 2009 in the range of 9 to11 percent year-on-year.
• Given the customer demand for ongoing network expansion and improvement – particularly in high growth markets such as Iraq, Palestine, Oman, Algeria and Indonesia –  the Group expects to allocate between QR 6.5 and 7.3 billion in 2009 for Capital Expenditure group-wide.

In parallel with the global development, Qtel has committed to continue to invest in growth and development within Qatar. The company emphasised its commitment to the process of Qatarization, with a specialist committee set in place to pursue new initiatives to ensure that Qtel retains and develops the strongest local talent.

In addition, the company presented its 2008 Corporate Social Responsibility Report to shareholders at the AGM, outlining the company’s responsibilities and achievements for the community in the previous financial year and goals for the future.

SOURCE: QTel