Qatar Telecom (Qtel), a leading telecom company in the Mena region, said it has won approval from its shareholders to increase its authorised share capital to QR5 billion ($1.37 billion) besides getting their nod for a 40 per cent rights issue.

For the rights issue, the Qtel general assembly has recommended two shares for every five shares held, after the distribution of bonus shares), at a price of QR75 per share.

Addressing the meeting, Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Qtel chairman, said as per the board recommendation the company will be distributing cash dividends of 30 per cent of the nominal share value (QR3 per share) and a bonus share of 30 per cent of the issued share capital to the investors.

Sheikh Abdullah later spoke of the achievements realised by the company in 2011, and outlined the exciting opportunities presented by the Qtel Group’s refreshed strategy.

'The Qtel Group has continued to see the benefits of a diversified financial base, both in terms of markets – with 82 per cent of revenue coming from outside Qatar in 2011 – and business segments,' the chairman said.

'We intend to use the fruits of our dynamic growth to improve the customer experience; to strengthen the foundations of our business and to invest in new growth across our operations,' he added.

Driven by customer growth and market share gains across its diverse portfolio, the group revenue surged 16 per cent, ending the year at QR31.8 billion compared to QR27.4 billion in 2010.

According to him, the group’s consolidated customer base stood at 83.4 million at the end of the year, representing a 12.4 per cent year-on-year increase.

The net profit attributable to Qtel’s shareholders increased year-on-year by 11.6 per cent. FY 2011 net profit attributable to Qtel shareholders stood at QR2.6 billion, he added.

Sheikh Abdullah said the highlights of the year include strong performance from the Wataniya portfolio in Kuwait, Tunisia and Algeria, in addition to the first positive Ebitda results in Palestine.

Market positions were maintained in key operations of Qatar, Indonesia and Iraq with financial results showing positive growth, said the official.

'The acquisition of an additional stake in Tunisiana, taking Qtel Group’s effective stake to 39.4 per cent, was another key step, as was the launch of the new Qtel Group strategy, with the accent on customer experience, broadband development and productivity,' Sheikh Abdullah observed.

In addition, the launch of Qtel Fibre in Qatar and the development of an LTE programme have both contributed to the company’s positioning at the cutting-edge of the latest technology, he stated.

On the future plans, Sheikh Abdullah said, “Throughout this process of investment and growth, we will stay focused on the needs of our stakeholders, and in particular our customers and the communities we work in.'

'We are taking a fresh look at the way we serve our customers, and aiming to improve it at every step. In addition, we will invest in new technologies and build new partnerships to bring the best possible services to the people of Qatar,' he added.-TradeArabia News Service