DUBAI
VODAFONE Group has extended a contract to manage loss-making affiliate Vodafone Qatar until 2018 and will take a smaller percentage of its revenues under the new terms.
Vodafone, which owns 23 percent of Vodafone Qatar, took over managing it in June 2008 for an initial period of five years.
“The new agreement sees the fee payable to Vodafone reduced as a percentage of revenue to reflect the increased scale of the business and the transition to a fixed and mobile operation,” the companies said in a joint statement on Wednesday.
Commenting on the agreement, Qatar Foundation’s Chief Administration Officer and Vodafone Qatar Board Member Rashid al Naimi said, “Qatar Foundation and the local board are delighted to carry on the relationship with Vodafone. With Vodafone’s full support we look forward to continued success as we grow the business to serve our customers and bring value to our shareholders.” Previously, Vodafone Qatar paid 5 percent of its revenue in management fees, but this has been cut to a maximum of 3.5 percent.
Vodafone Qatar also published second quarter results, in which the mobile phone company reported a second-quarter net loss of QR121.7 million for the three months to September 30, according to Reuters’ calculations.
That compares with a loss of QR115 million ($31.58 million) in the year-earlier period. The company’s financial year starts on April 1
Vodafone Qatar, which ended Qatar Telecom’s (Qtel) domestic monopoly in 2009, has yet to make a quarterly net profit.
Second-quarter revenue rose to QR345.5 million , from QR299.7 million a year ago.
Capital expenditure in the six months to September 30 rose 20 percent to QR146 million ahead of the company’s launch of fixed line services later in the financial year.
Vodafone Qatar began post-paid contract services in June, which the operator hopes will help woo subscribers from Qtel and improve margins.
Post a Comment
Post a Comment