Vodafone Qatar (VFQS) investor relations material

Executive summary

• Achieved strong year-on-year growth in revenue, EBITDA, and net profit, with net profit surpassing QAR 700 million for the first time, up 16.8% year-on-year to QR 702m, driven by higher EBITDA and reduced financing costs.

• Maintained a near-zero net debt-to-equity ratio, supporting future investment and diversification, with net debt reduced by 90% to QR 26.9 million.

• Board proposes a 12% per share cash dividend (QR 507m) and plans to initiate quarterly dividends from 2026, pending approvals.

• Continued innovation in consumer and enterprise offerings, including new digital services, loyalty programs, and private network launches, with strategic investments and partnerships such as a JV with Sirti Digital Solutions.

• Consolidated financial statements for the year ended 31 December 2025 were audited by KPMG, with an unqualified opinion and compliance with IFRS Accounting Standards.

Financial highlights

• Total revenue grew 8.1% year-on-year to nearly QR 3,447 million, driven by all business segments and higher equipment sales.

• EBITDA increased 10.5% to QR 1.5 billion, with margin reaching 43.7%.

• Net profit margin improved to 20.4%, with underlying net profit growth at 22% after adjusting for one-offs.

• Free cash flow surged 41% year-on-year to QR 779 million, and operating cash flow increased by 41%.

• Basic and diluted EPS rose to QR 0.166 from QR 0.142.

Outlook and guidance

• Expecting mid-single digit top-line growth for 2026, supported by ARPU recovery and expansion in fixed and managed services.

• EBITDA margin projected to remain above 43% for the next year, with CAPEX intensity guidance set between 14.5%-15.5%.

• Quarterly interim dividends planned from FY26, pending regulatory approval.

• The group is assessing the impact of IFRS 18, effective 2027, on future financial statement presentation.