In This Article:
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Revenue Growth: Increased by 2.5% year-on-year.
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Net Profit Growth: Increased by 11.2% year-on-year, surpassing QAR600 million.
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EBITDA: QAR1.36 billion, a growth of 6.1% year-on-year.
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OpEx Intensity: Reduced to 23.4% for the financial year 2024.
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Operating Cash Flow: Grew by 2.4% on an underlying basis.
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Net Debt Reduction: Reduced by 22.6% year-on-year.
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EBITDA Margin: Reported at 42.8%, with an underlying margin of 41.8%.
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Net Profit Margin: Increased by 1 percentage point to 18.4% on an underlying basis.
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CapEx: QAR441 million, reflecting an intensity of 13.8%.
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Return on Capital Employed: Increased by 1.1 percentage points to 11.7%.
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EPS: Improved by 7.2% year-on-year.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vodafone Qatar QSC (DSMD:VFQS) reported a 2.5% increase in revenue and an 11.2% rise in net profit, showcasing strong financial performance.
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The company has maintained a robust cash flow generation, with a 2.4% growth in underlying operating cash flows and a 22.6% reduction in net debt.
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Vodafone Qatar QSC (DSMD:VFQS) achieved a significant improvement in EBITDA, reaching QAR1.36 billion, a 6.1% year-on-year growth.
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The company is expanding into new high-growth areas such as ICT and fintech, with initiatives like iPAY contributing to a cashless society.
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The Board of Directors recommended an 11% dividend, reflecting confidence in the company's financial health and future prospects.
Negative Points
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The expansion into ICT has been challenging, with a success rate below 10%, indicating potential difficulties in capturing market opportunities.
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The transition from FDD to TDD and the sunset of 3G pose operational challenges that require careful management to avoid service disruptions.
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There is a highly competitive pricing environment in the Enterprise segment, which could impact profitability if not managed effectively.
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The company faces challenges in subscriber growth post-World Cup, with uncertainties around population recovery in Qatar.
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Vodafone Qatar QSC (DSMD:VFQS) did not provide EPS growth guidance for the year, citing it as too early, which may create uncertainty for investors.
Q & A Highlights
Q: Why is Vodafone Qatar not providing EPS growth guidance for this year? A: Masroor Anjum, Chief Financial Officer: We prefer not to give EPS guidance as it is still early in the year. We hope to provide guidance by the end of Q1.
Q: What are Vodafone Qatar's plans regarding data centers and the impact of AI on the business? A: Hamad Abdulla Jassim Al-Thani, Chief Executive Officer: We are exploring opportunities in data centers and AI, but cannot disclose specific projects at this time.