Wataniya Telecom posts KD97.3m net profit for nine months ending September 2009

This equates to a consolidated earnings per share of 194 fils (55 cents), an increase on the 136 fils (39 cents) per share earned for the same period last year. EBITDA for the first nine months of 2009 stood at KD141.9m ($497.3m) compared with an EBITDA of KD149.5m ($523.9m) for the same period in 2008.

Sheikh Abdullah Bin Mohammed Bin Saud Al Thani, Chairman of Wataniya Telecom, commented:

"Wataniya Telecom successfully enhanced profitable returns to its shareholders in the first nine months of the year, despite ongoing competitive pressures in its home market in Kuwait. We continue to deal effectively with these pressures, with the launch of new and compelling offers to our customers not only in Kuwait but also in our other markets. As a Group, our presence and our growth has remained strong, with our customer base expanding to stand today at over 12.5 million."

Wataniya Telecom Group Highlights:
- Total active customer base increased to 12.5 million at the close of Q3 2009, versus 10.7 million at the close of Q3 2008: growth of 16.9%.

- Returns to shareholders enhanced, delivering an increase in consolidated earnings per share in the first nine months of 2009 of 194 fils (55 cents), compared with 136 fils (39 cents) per share for the same period in 2008.

- Stability of revenues maintained, with revenues for the first nine months of 2009 totalling KD351.7m ($1.23bn), compared with revenues for the same period in 2008 of KD355.3m ($1.25bn).

- EBITDA for the year to date Q3 2009 of KD141.9m ($497.3m), compared with EBITDA of KD149.5m ($523.9m) for the same period in 2008.

Kuwait: Wataniya Kuwait's customer base increased to 1.46 million customers at the end of Q3 2009, an increase of 13.6% on Q3 2008. Revenues for the year to date Q3 2009 were KD149.6m ($524.0m) compared with revenues for the same period in 2008 of KD169.6m ($594.2m). EBITDA for the year to date Q3 2009 was KD70.6m ($247.4m) compared with EBITDA for the same period in 2008 of KD87.2m ($305.4m). Net profit for year to date Q3 2009 grew to KD96.9m ($339.5m), compared with net profit for the same period last year of KD61.5m ($215.3m). The elimination of the fees for incoming calls from the fixed line & International network in late 2008 continued to have a negative impact on results.

Tunisia: Tunisiana customer base at the end of Q3 2009 stood at 4.81 million customers: an increase of 15.7% on Q3 2008. Revenues for year to date Q3 2009 were KD75.9m ($266.0m), similar to revenues for the same period in 2008 of KD76.1m ($266.5m). EBITDA for the year to date Q3 2009 increased to KD41.6m ($145.7m) from 40.3 million ($141.2m) for the same period last year. The net attributable profit to Wataniya Telecom for the year to date Q3 2009 also increased to KD18.0m ($62.9m) compared with KD16.9m ($59.2m) for the same period in 2008. Growth in US Dollar terms is lower due to the depreciation of the Tunisian currency. Results in local currency terms for Tunisiana were higher for both Revenue (+9%) and EBITDA (+12%) when comparing the same period last year. Wataniya Telecom accounts for Tunisiana on a 50% proportionate consolidation method.

Algeria: The Nedjma customer base at the end of Q3 2009 amounted to 5.94 million customers: an increase of 18.2% on Q3 2008. Nedjma posted year on year revenue growth with revenues for the year to date Q3 2009 standing at KD105.1m ($368.3m) compared with revenues of KD96.2m ($337.0m) for the same period in 2008. EBITDA for the year to date Q3 2009 was KD35.2m ($123.2m), an increase of 21.5% on KD28.9m ($101.4m) for the first nine months of 2008. The total net loss for the year to date Q3 2009 was KD6.4m ($22.3m) compared with a net profit of KD1.1m ($3.9m) for the same period in 2008. The net attributable loss to Wataniya Telecom in the year to date Q3 2009 was KD4.5m ($15.8m) compared with the profit of KD788 thousand ($2.76m) for the same period in 2008. Growth in US Dollar terms is lower due to the depreciation of the Algerian currency. Results in local currency terms for Nedjma were higher for both Revenue (+20%) and EBITDA (+34%) when comparing the same period last year.

Saudi Arabia: Bravo customers reached 0.19 million at the end of Q3 2009, an increase of 35% from Q3 2008. Revenues in the year to date Q3 2009 increased to KD14.2m ($49.9m) from KD9.6m ($33.8m) for the same period in 2008. The total net loss for the year to date Q3 2009 was KD8.0m ($28.2m) compared with KD9.6m ($33.8m) in the comparable period in 2008. The net attributable loss to Wataniya Telecom for the year to date 2009 is KD4.5m ($15.7m). This is an improvement of 17% compared with the loss of KD5.4m ($18.8m) for the year to date Q3 2008.

Maldives: Total customers at the end of Q3 2009 were 0.10 million, an increase of 10.9% from Q3 2008. Revenues were KD5.6m ($19.6m) for the year to date 2009 compared with KD3.8m ($13.2m) for the same period in 2008 year to date. EBITDA for the first nine months of 2009 was KD0.11m ($0.40m) compared with an EBITDA loss of 0.10m ($0.32m) for the same period in 2008. The net loss for the year to date Q3 2009 is KD2.8m ($9.7m) compared with the loss of KD2.9m ($10.2m) for the same period in 2008.

The Company's share price as of 30th September, 2009 was KD1.520, giving a market valuation for NMTC (Wataniya Telecom) of KD766m ($2.7bn).