Vodafone Qatar on Wednesday announced its financial results for the year ended December 31, 2021, which reflect the company’s success in maintaining its growth trajectory.
The company reported an annual net profit of QR327 million, an increase of 76.9 percent or QR142 million, compared to the previous year mainly driven by EBITDA growth, despite the impact of COVID-19.
Total revenue for the year increased by 14.8 percent year-on-year to reach QR2.5 billion thanks to continued growth in the company’s postpaid, fixed broadband services (GigaHome), managed services and equipment and related services.
Service revenue grew by 10.4 percent to QR2.2 billion. Vodafone Qatar is now serving 1.9 million mobile customers representing a growth of 16.3 percent compared to last year.
EBITDA surpassed QR1 billion reflecting the strong growth of QR223 million, or 27.5 percent, compared to last year, positively impacted by the higher service revenue and the continued cost optimisation programme. Consequently, the EBITDA margin improved by 4.1 percentage points to reach 40.8 percent.
Based on Vodafone Qatar’s commitment to enhance shareholder value and the strong financial performance, the board of directors has recommended the distribution of a cash dividend of 6 percent of the nominal share value, QR0.06 per share, which will be presented at the company’s next Annual General Assembly for approval.
Commenting on the results, Vodafone Qatar Chairman Abdulla Nasser Al Misnad said, “Vodafone Qatar started 2021 by making further significant investments to enhance and expand its network, which allowed us to better support all of our consumer and business customers across Qatar. We have also worked hard to continue adapting to the new landscape in which we are now operating as a business, due to the long-term impact of the COVID-19 pandemic, as well as set ourselves up for the future. Now, through our efforts to proactively accelerate and promote the digital transformation of Qatar, we look forward to playing a pivotal role in what is set to be a very productive year for both our company and the country. All of this would not be possible without the exceptional leadership of our executive management team and the relentless efforts, loyalty and commitment to providing the highest quality customer service of our employees, who I thank on behalf of the Board.”
Vodafone Qatar Managing Director Rashid Fahad Al Naimi said, “Vodafone Qatar finished 2021 with a 76.9 percent increase in net profit year-on-year and with 16 consecutive quarters of higher year-on-year revenue. This is despite the sustained impact of the COVID-19 pandemic on global markets and headwinds that continue to erode the overall market value of the telecommunications industry worldwide. The transformation strategy that Vodafone introduced in 2018 is still in its implementation phase, and its effectiveness can be seen through the trend of constant growth that we have achieved in the past year. The company is consistently improving the returns it provides to its shareholders, which is led by revenue growth and continued cost control, and we are confident that we will be able to continue to do so in 2022 and beyond.”
Vodafone Qatar CEO Sheikh Hamad Abdulla Jassim Al Thani said, “The year 2021 was an exceptional year for Vodafone Qatar. Thanks to our clear business strategy and by relying on innovation we have been able to continue moving towards our desired goals at an ever-increasing pace. We increased our efforts to develop and enhance our industry-leading network, especially with regards to our 5G capabilities. We expect these investments to continue to support Qatar’s digital infrastructure and open up opportunities to deploy smart city applications, with the use of emerging technologies such as the Internet of Things (IoT) and Augmented Reality (AR). These will, in turn, drive digital transformation across the country. We also launched our new business vision which revolves around combining technology with the human spirit, to provide better opportunities for all and to overcome social challenges. This is part of our vision to move from being a communications service provider to being an active player in the digital sector as a whole.”
“When fostering innovation and creativity, we rely on this human element and on close collaboration between all parties. As a result, our efforts, in cooperation with our partners, have proven that together we can build a sustainable and prosperous future for all residents and citizens of Qatar,” Sheikh Hamad said.