Net profit reaches KD 9.6 million

KUWAIT: Kuwait Telecommunications Company (VIVA), Kuwait's fastest-growing and most developed telecom operator, announced the financial results for the first quarter of the period ended 31 March 2019; whereby VIVA's revenues reached KD 66.6 million whereas the net profit reached KD 9.6 million during the first quarter in 2019.

Commenting on the Q1-2019 financial results, Dr Mahmoud Ahmed Abdulrahman, VIVA's Chairman 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 positive return to our shareholders. VIVA achieved these results due to an integrated 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 needs of its customers and meet their needs."

He added: "VIVA was able to achieve revenue of KD 66.6 million during Q1- 2019 compared to KD 77.6 million for the same period last year. 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".

On his part, Eng Maziad Nasser Al-Harbi, VIVA's CEO said: "During Q1-2019 VIVA achieved a good levels of its revenues and profitability in addition to strengthen its leadership in the telecom market; in line with its plan to launch the fifth generation 5G network in the near future in Kuwait, to be one of the first telecommunications companies in the Middle East to introduce this service to its customers to match the world's largest companies in this field. It is noteworthy to mention that VIVA won recently "the third place as Best Company in the Middle East in Investor Relations for 2018 and the first in Kuwait to be the "Leading Corporate in Investor Relation of 2018" according to MEIRA and Best Network Development Award for Best Network Development in the Middle East and North Africa at the 5G MENA Awards 2018.

He added: "We will continue our efforts to implement our strategy to enhance our competitiveness and further growth and success in the Kuwaiti telecom market by launching a unique and innovative portfolio of services, products and offerings that are in line with the technological development and customer needs and requirements".

Commenting on VIVA Financial Results Al-Harbi added: "The Company's revenues declined in Q1-2019 to reach KD 66.6 million compared to Revenues of KD 77.6 million during Q1-2018. The reason for the decline is that the comparative period of 2018 witnessed extraordinary promotions resulted in high increase in the revenue. Currently and during 2019, VIVA has adopted a balanced operating policy in its marketing strategy to focus on the quality, which is reflected in the financial and operational efficiency of the company.

Despite this decline in revenues during Q1-2019, VIVA recorded a growth of 4.2 percent in its EBITDA to reach a KD 18.7 million with EBITDA margin of 28 percent during the first quarter of 2019 compared to 23 percent in the first quarter of 2018. As a result, VIVA reported a net profit of KD 9.6 million (earnings per share of 19 fils) during the first quarter of 2019 with a profit margin of 14.5 percent. VIVA's customer base reached approximately 2.04 million at the end of March 2019.

On his part, Mohammed Bin AbdulMohsen Al-Assaf, VIVA's CFO, said: "VIVA's financial results reflected its ability to compete, sustained revenues and maintain its position as the second largest telecom operator in the Kuwaiti market in term of revenues 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 31 March 2019, Al-Assaf Added: The Total assets at the end of the period reached KD 331.8 million where total shareholders' equity reached KD 181.6 million, with a book value per share of 364 Kuwaiti fils. In addition, VIVA has strong financial solvency position, which is considered to be the best across the Middle East telecoms companies.