MTC Announces Revenues of USD $1.356 billion (KWD 393 m), EBITDA of USD $563 million (KWD 163 m), Net Income of USD $247 million (KWD 71 m) for the Quarter Ending March 31, 2007

1 May 2007
Content from a Premium Partner
Celtel (Amsterdam)
press release

Mobile Telecommunications Company K.S.C (MTC – KSE Ticker: TELE, RIC: TELE.KW, Bloomberg Code: TELE.KK) announces its first quarter of 2007 results reflecting the following:

1st quarter 2007 Highlights

  • Total Active Customers -- 29.7 million (as at March 31, 2007)
  • Consolidated Revenues -- KD 392.5 million (USD 1.356 billion)
  • EBITDA -- KD 162.8 million (USD 562.6 million)
  • Net Income -- KD 71.4 million (USD 246.6 million)
  • EPS -- 38 Fils (USD 0.13)

The MTC Group is serving a growing customer base of over 29.7 million active customers in 20 countries in the Middle East and Africa, reflecting an increase of 95% when compared to the first quarter of 2006. Consolidated revenues increased 66% from $818 million to $1,356 million; EBITDA grew from $359 million to $563 million, an increase of 57% representing a margin of 42%. Net income reached $247 million, up from $185 million, an increase of 33% over the same period last year representing earnings of USD 0.13 per share, 33% above the EPS for same period in 2006.

"On the back of excellent results for 2006, we are delighted that MTC continues its strong performance in the first quarter of 2007. We have experienced strong customer growth across all our operations in line with our 3x3x3 vision of profitable expansion. Our impressive financial results underscore our achievements to date and we expect this trend to continue MTC will build and add to the successes in recent years as we actively pursue expansion opportunities" said Dr Saad Al Barrak, CEO of the MTC Group.

In January 2007, MTC launched ACE-an implementation strategy to realize the targets of the 3x3x3 vision. ACE seeks to extract superior value from existing assets through three main thrusts: Accelerating the growth in Africa; Consolidating the existing assets; and Expanding into adjacent markets. Based on organic growth and through ACE, MTC's new goals by the year 2011 are to:

  • Attain a US$6 billion EBITDA
  • Become one of the top 10 mobile operators in the world.
Key Events of the First Quarter

March 24, 2007

MTC was successful in making the highest bid for the 3rd mobile license in the Kingdom of Saudi Arabia and is looking forward to soon receiving the license from the CITC.

March 25, 2007

The Annual General Assembly meeting of shareholders approved the Board of Directors recommended 1 for 2 stock dividend and 100 fils per share cash dividend for 2006

About MTC Group

Mobile Telecommunications Company (MTC) is the pioneer of mobile services in the Middle East and now a major player in Africa. The company was established during 1983 in Kuwait as one of the region's first mobile operators, and since the initiation of our "3x3x3" expansion strategy in 2003, we have expanded rapidly becoming the 5th largest company in the world with a footprint in 20 countries (soon 21 with the Kingdom of Saudi Arabia).

As a leading mobile and data services operator in six Middle Eastern and 14 sub-Saharan African countries with 13,000 employees, we provide a comprehensive range of mobile voice and data services to over 29.7 million active individual and business customers.

MTC operates in Kuwait and Bahrain as mtc-vodafone, in Jordan as Fastlink, in Iraq as mtc-atheer, in Lebanon as mtc-touch, in Sudan as Mobitel and in 14 sub-Saharan countries in Africa as Celtel: Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia.

The Parent Company and its subsidiaries (the Group) provide mobile telecommunication services under licenses from Governments of the countries in which they operate; purchase, deliver, install, manage and maintain mobile telephone and paging systems; and invest surplus funds in investment securities.

The Group recorded revenues of KD 392.5 million (USD 1.356 billion) and net profit of KD 71.4 million (USD 246.6 million for the quarter ending March 31, 2007. The Kuwait Investment Authority owns 24.6% of the company's shares.

The Mobile Telecommunications Company KSC (the Parent Company) is a Kuwaiti shareholding company and its shares are traded on the Kuwait Stock Exchange. The Company's share price as at May 1, 2007 was 3.700 Fils, giving a market valuation for MTC exceeding KWD 7 billion (USD 24 billion).

The authorized, issued, and fully paid up share capital of the Parent Company as at March 31, 2007 consists of 1,895,655,826 shares of 100 Fils each.

1 USD = KD 0.28955

For further information, please visit www.mtctelecom.com

Enquiries:

Mr Ibrahim Adel, Communications and Investor Relations Director, Email: i.adel@mtc.com.kw

Mr Antoine Aboukhalil, Media Relations, Email: antoine@mtctelecom.com

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