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Thu 1 Aug 2002 04:00 AM

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Qatar Telecom profits up 18.5 percent H1 2002

Qatar Telecom (Q-Tel) saw its revenues grow 18.5 percent for the first half of 2002, recording QR 518.6 million (US $143 million) in profits.

Qatar Telecom (Q-Tel) saw its revenues grow by 12.15 percent for the second quarter of 2002, reaching QR 426.9 million compared to the same period a year earlier. Net profit increased to QR 249.4 million, up 12.6 percent from QR 221.5 million in 2001.The latest results cast a positive light on the part privatised telecom company, recording QR 518.6 million (US $143 million) in profits for the first half of 2002 from QR 437.5 million in the first half of 2001, rising 18.5 percent.“I am delighted to report that, due to the exceptional efforts of every member of staff, Qtel continues to meet the needs of its customers and its shareholders,” said the company’s chairman, Abdullah bin Mohamed bin Saud Al Thani.“These second quarter results continue to reflect the ongoing economic improvement within Qatar and this growth is still expected to continue throughout the remainder of the current financial year and beyond,” Al Thani added.When asked what he attributed the 13 percent growth in net profit to, Wael Ziada, research analyst for technology and telecommunications at the Cairo based investment bank EFG-Hermes told ITP.net, "The growth in the bottom line of Q-Tel can't be attributed to a single factor but a variety of them. Chief among these factors are the growth in revenues from GSM operations that shoot up by almost 35%. Moreover the continuous improvement in the company's operating margin has contributed significantly toward preserving bottom line profitability." EFG-Hermes believes the GSM operation of Qatar Telecom will continue to be the main growth driver in the medium term. Qatar Telecom was privatised in 1997 after the government sold 45 percent of its share, worth US $ 742 million to Qatari, other GCC nationals and foreign investors. At the time, the flotation was the largest-ever equity offering from the Gulf region. The company, which is listed on the Doha Stock Market (DSM), has a market capitalization of Qatari Riyal 7.4 billion, constituting 30 percent of the capitalization of the DSM.Qatar Telecom made its debut on the Abu Dhabi Securities Market (ADSM) on 25 May 2002, becoming the first non-UAE company to secure such a listing.

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