Revenues reach KD 215.6 million
KUWAIT: VIVA, a world-class digital leader providing innovative services and platforms to customers and enabling the digital transformation in Kuwait, and a subsidiary of STC Group, announced the financial results for the nine-month period ended 30 September 2019; whereby VIVA's Revenues reached KD 215.6 million, and the net profit reached KD 31.6 million for the nine-month period ended 30 September.
Commenting on the financial results, Eng Maziad Nasser Al-Harbi, VIVA CEO said: "The company's financial results grew during the third quarter compared to the second quarter of this year, third quarter revenues reached KD 76.1 million compared to KD 72.9 million during second quarter of 2019, a growth of 4.3 percent, EBITDA grew by 11.0 percent reaching KD 21.4 million in the third quarter of 2019while, the net profit for the same period increased to reach KD 11.7 million compared to KD 10.3 million for the second quarter of 2019, a growth of 13.3 percent.
VIVA was able to achieve this growth during the third quarter of 2019 despite the continued competition witnessed in the Kuwaiti telecom market which is one of the most competitive markets in the region, where VIVA was able to achieve outstanding levels of revenues in addition to enhancing the operational efficiency to ensure generating value and positive return to our shareholders.
VIVA has accomplished these results due to the implementation of the digital transformation strategy and providing integrated solutions for both consumers and enterprises, and has driven its business to new areas of sustainable growth, through a series of innovative initiatives which aims to improve operational efficiency, customer service, and offering the best services and products that cater to its customer's needs, as well as invested in the advanced 5G framework with the biggest scope over the country."
Al-Harbi added: "Commenting on the results of the nine-months period ended 30 September 2019, VIVA managed to achieve revenues KD 215.6 million during the nine-month period of 2019, while the EBITDA recorded a growth of 11.3 percent to reach a KD 59.5 million during the nine-month period of 2019 compared to KD 53.4 million for the same period in 2018. EBITDA margin reached 28 percent during the nine-month period of 2019 compared to 25 percent during the nine-month period of 2018. As a result, VIVA reported a net profit of KD 31.6 million (earnings per share of 63 fils) during the nine-month period of 2019 with a profit margin of 15 percent. VIVA's customer base reached 2.01 million at the end of September 2019."
He added: "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 outstanding level of revenues and profitability during the nine-month period in 2019, VIVA reflects its solid stance in the telecom market, accompanied with the fruitful launch of the fifth generation (5G) network nationwide, positioning itself to be one of the first telecommunications companies in the region to offer this service to its customers with the widest coverage in Kuwait, and in line with companies of its likes in the international market."
Al-Harbi concluded: "VIVA's financial results reflected its capability to compete and preserve its function as the Second greatest telecom operator in the Kuwaiti market in terms of market share of revenue in the telecom sector. Due to VIVA's safe and stable 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. Shedding the light on the financial position of the company as of 30 September 2019, the total assets at the end of the nine-month period of 2019 reached KD 387.8 million where total shareholders' equity reached KD 203.6 million, with a book value per share of 408 Kuwaiti fils. In addition, VIVA has a strong financial solvency position, which is considered one of the best companies across the Middle East telecoms companies."