MTC has posted consolidated revenues of US$310.23 million (Kuwaiti Dinar (KD) 90.11 million), for the first quarter of 2005, an increase of 22.05 per cent over the corresponding in period in 2004.
The MTC Group has posted consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of US$189.09 million, (KD54.92 million), a 61 per cent margin while consolidated net income reached US$141.37 million (KD41.06 million), for the first quarter of this year. This translates to earnings per share of 26 cents (76 fils) for the quarter, compared to the results for the first three months of 2004 of 53 fils (18 cents) per share.
"MTC's focus on the fundamentals has produced strong operating and financial results for the first quarter of 2005," said Asaad Al-Banwan, Chairman of the MTC Board. "Clearly our year to date performance has been above expectations. This confirms we have adopted the right vision and implemented sound management strategies to achieve these targets. MTC operates in buoyant markets and we are well positioned to take on these markets. As the company grows and diversifies its operations, we are confident of reaping long term benefits for all our stakeholders."
Al-Banwan added: "We have also entered into a binding agreement to acquire 100 per cent of the issued capital of Celtel, the leading cellular operator in Sub-Saharan Africa. This transaction will propel MTC into the international arena and sets the stage for the next phase of growth."
MTC serves an active customer base in Kuwait, Jordan, Bahrain, Iraq, and Lebanon and reflects a 69.13 per cent growth in customer numbers over the corresponding period last year. The company believes its dedication to customer service and a consistent strategy, delivered locally, are the real drivers for the business going forward.
Dr. Saad Al-Barrak, MTC Deputy Chairman and Managing Director, said: "I want MTC to be one of the world's best loved brands. Over nine years, we aim to be a global wireless operator, and we have exceeded our targets for the first leg of our 3x3x3 strategy ahead of schedule. Our acquisition of Celtel will help us expand our footprint into Africa. The MTC Group now serves over 9.5 million customers in the Middle East and Africa. We have strengthened our key operating metrics and financial ratios and with the Celtel acquisition, MTC is a leader among its peers."
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MTC accelerates top line growth in first quarter 2005
- Kuwait: Tuesday, May 10 - 2005 at 14:55
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The Mobile Telecommunications Company (MTC)* has announced strong operating results for the first quarter of 2005.
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Posted by Anne-Birte Stensgaard, Senior News EditorTuesday, May 10 - 2005 at 14:55 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Wed May 11 2005.
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*Mobile Telecommunications Company K.S.C. (KSE Ticker: TELE, KSE Stock Number: 605, Reuters Ticker: TELE.KW) (the "Company", "MTC")
Select operational and financial highlights:
KUWAIT
MTC Vodafone has over 1.31 million active customers in Kuwait, an increase of 44,795 customers compared to the first three months of 2004. The company has a 60.3 per cent market share in Kuwait the while the total penetration rate of mobile customers in Kuwait is close to 82% of the total population. Post paid customers account for 26 per cent of MTC's total customers and blended ARPU for the first three months of 2005 was US$ 45.14 (KD 13.11).
MTC Vodafone Kuwait posted revenues of US $ 173 million (KD 50.4 million) with an EBITDA of US $ 104 million (KD 30.2 million) and an EBITDA margin of 60 per cent. The company has posted net profits of US $ 85 million (KD 24.6 million) and is distributing dividend of 160 fils in cash seven per cent in stock. A new board of directors was also elected to lead the company for the next three years. The company has continues to roll out cutting edge technology and services providing customers with the best value for money.
JORDAN
In Jordan, MTC's operating subsidiary PELLA (Fastlink) has maintained its market leadership in terms of all financial and operating ratios. Fastlink enjoyed an estimated 71 per cent market share and 1.26 million customers at the end of March 2005. Its customer base has increased by 29.75 per cent compared to the corresponding period last year. During the first quarter, revenues increased by 10.5 per cent, reaching US $ 111 million (KD 32.11 million). EBITDA in Jordan was US $ 56.95 million (KD 16.54 million) for an EBITDA margin of 51.52 per cent. Net profit for the period was US $ 32.15 million (KD 9.34 million).
BAHRAIN
During the first quarter of 2005, MTC Vodafone Bahrain has increased its active customer base to 136,000 customers and enjoys an18.7 per cent market share. MTC Vodafone Bahrain provides 3G coverage and the company's financial performance is improving as it enters its second year of operation.
IRAQ
MTC's subsidiary Atheer has been in operation for 13 months. As of March 31, 2005 Atheer has an active customer base of 345,906, a 42 per cent increase from December 31, 2004. Ninety nine per cent of its customers use prepaid credit.
Atheer is focusing on meeting the increasing demand for mobile lines in the southern and central regions of Iraq where the company now operates. It plans to accelerate network rollout by increasing both capacity and coverage in order to exceed a customer base of one million customers by the end of this year.
LEBANON
MTC Touch ended the first quarter of 2005 with 446,202 customers. The 48-month management contract awarded to MTC by the Lebanese government has allowed the MTC Group to expand its regional presence.
About MTC Group
Mobile Telecommunications Company (MTC) was founded in 1983 and today is one of the largest mobile operators the in Middle East and Africa, with more than 9.5 million customers in Kuwait, Bahrain, Jordan, Iraq, Lebanon and 13 countries in Sub-Saharan Africa.
MTC is listed on the Kuwait Stock Exchange.
In September 2002, MTC entered into a Partner Network Agreement with Vodafone, the world's leading mobile community in Kuwait creating MTC Vodafone Kuwait. In 2003 MTC continued its expansion with the acquisition of 96.4% of Fastlink in Jordan.
MTC's aspirations did not slow down and in 2003 MTC-Vodafone Bahrain was launched with the first 3G/EDGE nationwide network in the world. In 2004 the MTC Atheer service was launched in Southern Iraq, and today covers Baghdad as well.
2004 also witnessed the Government of Lebanon handing over the management of one of the two mobile networks (Mic2) to the MTC Group, which is known now as mtc touch.
Most recently in March of 2005 MTC acquired Celtel International, a Dutch communications network company with major interests in 13 Sub-Saharan African countries, in one of the biggest telecom deals in the Middle east and Africa worth $3.36 billion. The MTC Group now operates in 18 countries. With this deal MTC group has completed its first phase of its 3X3X3 strategy which entails becoming a global operator with more than 15 million customers by 2011. MTC will continue to expand internationally through acquisitions, partnerships and green-field opportunities
For more information, please contact:
Hussein Ashkanani
Media Relations
MTC Group
Rami Halawani/Shilpa Mathai
Polaris Public Relations
Dubai, UAE
Tel: +9714 3348522
Select operational and financial highlights:
KUWAIT
MTC Vodafone has over 1.31 million active customers in Kuwait, an increase of 44,795 customers compared to the first three months of 2004. The company has a 60.3 per cent market share in Kuwait the while the total penetration rate of mobile customers in Kuwait is close to 82% of the total population. Post paid customers account for 26 per cent of MTC's total customers and blended ARPU for the first three months of 2005 was US$ 45.14 (KD 13.11).
MTC Vodafone Kuwait posted revenues of US $ 173 million (KD 50.4 million) with an EBITDA of US $ 104 million (KD 30.2 million) and an EBITDA margin of 60 per cent. The company has posted net profits of US $ 85 million (KD 24.6 million) and is distributing dividend of 160 fils in cash seven per cent in stock. A new board of directors was also elected to lead the company for the next three years. The company has continues to roll out cutting edge technology and services providing customers with the best value for money.
JORDAN
In Jordan, MTC's operating subsidiary PELLA (Fastlink) has maintained its market leadership in terms of all financial and operating ratios. Fastlink enjoyed an estimated 71 per cent market share and 1.26 million customers at the end of March 2005. Its customer base has increased by 29.75 per cent compared to the corresponding period last year. During the first quarter, revenues increased by 10.5 per cent, reaching US $ 111 million (KD 32.11 million). EBITDA in Jordan was US $ 56.95 million (KD 16.54 million) for an EBITDA margin of 51.52 per cent. Net profit for the period was US $ 32.15 million (KD 9.34 million).
BAHRAIN
During the first quarter of 2005, MTC Vodafone Bahrain has increased its active customer base to 136,000 customers and enjoys an18.7 per cent market share. MTC Vodafone Bahrain provides 3G coverage and the company's financial performance is improving as it enters its second year of operation.
IRAQ
MTC's subsidiary Atheer has been in operation for 13 months. As of March 31, 2005 Atheer has an active customer base of 345,906, a 42 per cent increase from December 31, 2004. Ninety nine per cent of its customers use prepaid credit.
Atheer is focusing on meeting the increasing demand for mobile lines in the southern and central regions of Iraq where the company now operates. It plans to accelerate network rollout by increasing both capacity and coverage in order to exceed a customer base of one million customers by the end of this year.
LEBANON
MTC Touch ended the first quarter of 2005 with 446,202 customers. The 48-month management contract awarded to MTC by the Lebanese government has allowed the MTC Group to expand its regional presence.
About MTC Group
Mobile Telecommunications Company (MTC) was founded in 1983 and today is one of the largest mobile operators the in Middle East and Africa, with more than 9.5 million customers in Kuwait, Bahrain, Jordan, Iraq, Lebanon and 13 countries in Sub-Saharan Africa.
MTC is listed on the Kuwait Stock Exchange.
In September 2002, MTC entered into a Partner Network Agreement with Vodafone, the world's leading mobile community in Kuwait creating MTC Vodafone Kuwait. In 2003 MTC continued its expansion with the acquisition of 96.4% of Fastlink in Jordan.
MTC's aspirations did not slow down and in 2003 MTC-Vodafone Bahrain was launched with the first 3G/EDGE nationwide network in the world. In 2004 the MTC Atheer service was launched in Southern Iraq, and today covers Baghdad as well.
2004 also witnessed the Government of Lebanon handing over the management of one of the two mobile networks (Mic2) to the MTC Group, which is known now as mtc touch.
Most recently in March of 2005 MTC acquired Celtel International, a Dutch communications network company with major interests in 13 Sub-Saharan African countries, in one of the biggest telecom deals in the Middle east and Africa worth $3.36 billion. The MTC Group now operates in 18 countries. With this deal MTC group has completed its first phase of its 3X3X3 strategy which entails becoming a global operator with more than 15 million customers by 2011. MTC will continue to expand internationally through acquisitions, partnerships and green-field opportunities
For more information, please contact:
Hussein Ashkanani
Media Relations
MTC Group
Rami Halawani/Shilpa Mathai
Polaris Public Relations
Dubai, UAE
Tel: +9714 3348522
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