Qtel growth surges ahead

Qtel Chairman, Sheikh Abdullah Bin Mohamed Bin Saud Al Thani commented:

"I am delighted to report another outstanding Qtel performance through the third quarter of this year and our Omani business - Nawras - has once again delivered outstanding progress in its second year of operation. Our results this year to date, show continuing healthy performance in terms of revenue and profit growth".

In the first nine months of this year, the Group achieved revenues of QR 3,083 m (2005 - QR 2,137 m), which is an increase of 44.3% over the corresponding period last year, and an EBITDA of QR 1,910 m (2005 - QR 1,299 m), an increase of 47%. In achieving these results the Group has also successfully grown its mobile customer base by 56.6% over the corresponding period from 849,200 subscribers to a current total of 1,330,100.

The Net profit of the Group attributable to Qtel's shareholders, reached QR 1,295 m (2005 - QR 930 m) representing a significant increase of 39.2% over the same period in 2005.

Sheikh Abdullah continued, "Our business in Qatar saw revenues rise by 33.6%, over the corresponding period last year from QR 2,066 m to QR 2,761 m. The business also saw a strong EBITDA growth to QR 1,903 m, an increase of 33.6% compared to 2005. This revenue growth continues to be driven through our Wireless Services which grew its customer base by 26.6% to 854,900 achieving a revenue of QR 1,850 m (2005 - QR 1,326 m). Revenue from Wireline business grew by 23.1% to QR.911 m (2005 - QR 740 m) driven by continued demand for high-speed Internet and Corporate Services."

As of September 2006, Qtel's mobile operation in Oman - Nawras - has now 475,200 customers which represents a 28% market share. Revenues for Nawras during the first nine months of the year were QR 322 m and the company is confident that Nawras will continue to develop and make excellent financial progress.

Qatar's apparently never ending appetite for mobile products and services was boosted during the quarter, when the company launched the first 3G application - Video Calling - which allows customers to send and receive live video images over Qtel's 3G network. This was shortly followed by the launch of high-speed Internet access to 3G phones providing fast, easy and convenient access to the World Wide Web.

The company is also about to launch a range of Value Added Mobile Services including a multi-media portal that will provide a many exciting features and applications such as downloads, ring tones and screensavers. In addition, a new 'portlet' will be launched to coincide with the 15th Asian Games in December, that will have content specifically for and about the events and competitions taking place as well as streaming mobile TV channels.

The company added that it had also introduced new tariff plans for international calls in line with regional benchmarks. The new charges reflect Qtel's ongoing commitment to regularly review prices and to deliver to its customers attractive calling rates.

With regard to business growth outside of Qatar, Qtel said that plans to expand its operations beyond its home territory were developing as they continued to explore a number of promising and value added investment opportunities.

Sheikh Abdullah concluded, "With only a few weeks before the opening celebrations for the Asian Games, I am pleased to announce that Qtel is ready to play its role in making these Games a great success. Qtel has worked long and hard to ensure that our visitors can stay connected and that television viewers around the world can share in the excitement of this huge sporting event. Whilst we have already launched TETRA (Terrestrial Trunked Radio) in time for the West Asian Games last year, we will be the first in the region to use it as a fully commercial service with nationwide coverage during this year's Games. TETRA allows groups of customers to communicate over the radio spectrum without relying on GSM services. The service will be ideal for teams, emergency services and organizers needing to keep connected with several people simultaneously."