Qtel announces net profit of QR 483 million in first quarter 2007

Qtel Chairman Sheikh Abdullah Bin Mohammed Bin Saud Al Thani said, "We have had a great start to this year with excellent financial results and I am pleased to report that the Group's performance, for the three months ended 31st March 2007, has shown continued growth in revenue, EBITDA and net profit."

In the three months to 31st March 2007, the Group achieved revenues of QR 1452 m (2006 - QR 951 m), an increase of 53% over the corresponding period last year, and EBITDA of QR 834 m (2006 - QR 590 m), an increase of 41%. The Group, on a consolidated basis, achieved net profit before royalty payment of QR 699 m (2006 - QR 548 m), representing an impressive growth of 28%. Net profit of the Group attributable to Qtel's shareholders, after royalties was QR 483 m, an increase of 15% (2006 - QR 419 m).

"In Qatar, revenues rose by 22% over the corresponding period last year from QR 862 m to QR 1,055 m. Wireless Services exceeded 100% market penetration with 1,023,779 customers, a 35% increase over last year, achieving revenue of QR 727 m (2006 - QR 578 m). Revenue from Wireline Services grew by 15% to QR 328 m (2006 - QR 284 m)."

We are particularly pleased that Nawras in Oman, which has more than doubled its customer base to 670,000 in only its second year of operation, has contributed revenues of QR 170 m, a 91% increase over the same period last year.
We have already had an exceptionally busy start to the year with the closure of two very important deals that put us on track to achieve our goal to be in the top twenty telecommunications companies in the world by 2020.

In January, the partnership with ST Telemedia (STT) to provide us with a strong foothold in Singapore (through STT's stake in StarHub) and in Indonesia (through STT's stake in PT Indosat), was completed. In March we concluded the highly significant transaction to acquire a 51% stake in Kuwait's Wataniya Telecom, which has operations in the Middle East and North Africa and a mobile customer base of over seven million. The synergies and efficiencies that we expect to achieve from the enlarged Qtel Group will benefit all the group companies and will enhance the long term value for the shareholders, "concluded Sheikh Abdullah.