Qtel six month revenues reach QR 4,014 m, an increase of 97.4 per cent

"Once again, we are pleased to announce an excellent revenue growth, a strong EBITDA and net profit for the Group. The Group has successfully grown its total mobile subscriber base from 1.2 million in June 2006 to 9.3 million in June 2007. The significant growth is a result of strategic acquisitions in the first six months of 2007," said Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman, Qtel.

In the six months to 30 June 2007, the Group revenues grew 97.4% to QR 4,014 m (2006 - QR 2,033 m) and EBITDA grew by 67.8% to QR 2,113 m (2006 - QR 1,259 m). The Group, on a consolidated basis, achieved net profit before royalty of QR 1,338 m (2006 - QR 1,124 m), representing a growth of 19%. Net profit of the Group, attributable to Qtel's shareholders, after royalties, was QR 896 m (2006 - QR 858 m).

"Qtel's strategic priority is to continue to grow profitably and to fulfil its vision of becoming one of the top 20 world telecom operators by 2020; through a combination of partnerships and acquisitions. Qtel will focus on Consumer Wireless which has proved to be the biggest value generator, Fixed Wireless and Corporate Managed Services to optimize long term growth targets, both organic and inorganic,"

said Dr Nasser Marafih, CEO, Qtel.

Qtel, today, operates in 15 countries in the Middle East and Asia-Pacific through its subsidiary and associate companies and has 527 million populations under coverage. The Group has successfully grown its total mobile subscriber base from 1.2 million in June 2006 to 9.3 million in June 2007. The Group's proportionate mobile customer base in June 2007 stood at 4.3 million (2006: 1 million subscribers) representing more than four fold growth.

The year 2007 began with a number of expansion activities, placing Qtel in the premier league of mobile operators in the Middle East, North Africa and Asia region. Funding from leading banks around the world has enabled us to put in place a financing of $ 4.5 billion for our major acquisitions. These included 51% controlling interest in Wataniya group having operations in 6 countries, 25% stake in Asia Mobile Holdings for expansion opportunities in the Asia-Pacific region through its strategic alliance with ST Telemedia (STT) and 78% acquisition in ATCO Clearwire Telecom for providing wireless broadband and other telecommunication services in Pakistan and Jordan.

Qtel's business in Qatar continues to show good results with a revenue growth of 16.9% from QR 1,839 m in first six months of 2006 to QR 2,149 m in 2007. The mobile customer base stood at 1,108,000 in June 2007 (2006: 811,000) representing more than 100% penetration in Qatar.

Nawras, Qtel's mobile operation in Oman, reached customer base of 787,000 as of 30 June 2007, representing a 38% market share translating into revenues of QR 371 m (2006 - QR 194 m), an increase of 91.2% over the same period last year.

Wataniya group's total customer base at June 2007 was 7.4 million (proportionate customer base - 4.9 million), representing revenues of QR 2,421 m for the first six months of 2007. The post acquisition revenues of Wataniya group up to June 2007, included in Qtel Group, stood at QR 1,491 m.

"We aim to be the 'Employer of choice' and have realigned our HR policies and procedures to ensure that we attract and retain the best-in-class talent. In addition, we have strengthened our Customer Service to offer easier, more convenient interaction and services," said Dr Nasser Marafih.

Qtel's launch of Mozaic entertainment, offering customers a fully converged digital multimedia experience and an enriched package of services, served to expand its role as a content provider.

"The enlarged Qtel Group is well positioned to provide business growth and enhanced value to shareholders in the future. Our sustained efforts in business expansion and provision of state of the art products and services to our customers will help us achieve our mission to be one of the leading telecoms companies in the world," said Sheikh Abdullah.