Revenues reach KD 139.6 million

KUWAIT: Kuwait Telecommunications Company (VIVA), announced the financial results for the for six-month period ended 30 June 2019; whereby VIVA's Revenues reached KD 139.6 million, whereas the net profit reached KD 20 million during the first six-month period ended 30 June 2019.

Commenting on the financial results, Eng Maziad Nasser Al-Harbi, VIVA's CEO said: "Despite the continued competition witnessed in the Kuwaiti Telecom Market, VIVA was able to achieve good levels of revenues as well as enhanced the operational efficiency to ensure generating value and positive return to our shareholders. VIVA achieved these results due to an integrated and sophisticated management approach by a highly professional team that reinforces VIVA's substantial and positive role as a leading telecommunications company that always provides intelligent communications solutions to satisfy the aspirations of its customers and meet their needs."

Commenting on the quarterly results for the three months period ended 30 June 2019, VIVA's CEO added: "The Company's financial results have witnessed remarkable growth in the second quarter compared to the first quarter of 2019 as the revenue recorded KD 72.9 million in Q2-2019 compared to KD 66.6 million in Q1-2019 representing a growth of 9.5 percent. While EBITDA grew by 3.1 percent to reach KD 19.3 million in Q2-2019 compared to KD 18.7 million in Q1-2019. As a result the net profit for the same period increased by 7.1 percent to reach KD 10.3 million compared to 9.6 million.

He added: "VIVA was able to achieve revenues of KD 139.6 million during the six-month period ended 30 June 2019. Also, VIVA managed to achieve positive earnings for its shareholders as a result of the commitment to elevate the quality of customer service and improving the operational efficiency". By achieving this good level of revenues and profitability during the six months of the year 2019 VIVA reflect its strong leadership in the telecom market, in line with the impressive success of fifth generation (5G) network nationwide launching, to be one of the first telecommunications companies in the middle east that offers this service to its customers with the widest coverage in Kuwait which also to emulate the international companies in this field."

Al-Harbi added: The joining of Qualitynet Company in the second quarter of this year boosted VIVA's operational and financial results which is substantial supporter for us to successfully implement our corporate strategy to grow in the Enterprise segment, bringing to the International standards. At the same time individual customers will benefit from diversified and enhanced service offerings to solve their needs and requirements.

VIVA was able to achieve a growth of 14 percent in its EBITDA to reach a KD 38 million with EBITDA margin of 27 percent during the first six-month period of 2019 compared to 22 percent during the first six-month period of 2018. As a result, VIVA reported a net profit of KD 20 million (earnings per share of 40 fils) during the first six-month period of 2019 with a profit margin of 14 percent. VIVA's customer base reached approximately 2.1 million at the end of June 2019.

At the end Al-Harbi added: "VIVA's financial results reflected its ability to compete, sustain revenues and maintain its position as the second largest telecom operator in the Kuwaiti market in terms of market share of revenue volume in the telecom sector. Due to VIVA's secure financial policy we continued to implement the cost reduction program adopted by the company during the previous year to reach the best results to enhance profitability by adopting a balanced and effective financial policy in operating and capital expenditures. To shed the light on the financial position of the company as of 30 June 2019, the total assets at the end of the first six-month period of 2019 reached KD 380 million where total shareholders' equity reached KD 192 million, with a book value per share of 384 Kuwaiti fils. In addition, VIVA has strong financial solvency position, which is considered one of the best companies across the Middle East telecoms companies." The financial results for the six months ended 30 June 2019 are the first consolidated financial results for VIVA after the acquisition of Qualitynet Company on 6 May 2019. Therefore, the consolidated financial results of VIVA include Qualitynet financial results for the period from 7 May 2019 till 30 June 2019.