Vodafone Qatar (VFQS) Q2 2024 earnings summary

Executive summary

• Revenue grew by 2.2% year-over-year in H1 2024 to QR 1.59 billion, with net profit up 12.8% to QR 293 million, driven by market rationalization, cost optimization, and expansion in fixed broadband, mobility, wholesale, and IoT.

• Revenue market share increased by 2.6 percentage points year-over-year to 30.5%, and mobile subscriber base reached 2.1 million as of 30 June 2024.

• Diversification beyond mobility contributed 29% of total service revenue, with strong growth in Managed Services, Wholesale, Fixed, and IoT segments.

• Continued network infrastructure expansion, with 87% of outdoor sites 5G enabled and successful next-gen trials achieving 10+ Gbps speeds.

• Focus on network quality, customer experience, and digital expansion underpinned performance despite industry-wide price deflation and competitive pressures.

Financial highlights

• Service revenue grew 2.8% year-over-year in H1 2024 to QR 1.41 billion, with all segments (mobility, Fixed, Managed Services, IoT) registering growth.

• EBITDA reached QR 672 million, up 5.9% year-over-year, with margin expanding 1.5 percentage points to 42.4%.

• Net profit for H1 2024 was QR 293 million, up 12.8% year-over-year, with net profit margin at 18.5%.

• Operating cash flow rose 42.5% year-over-year, reflecting effective working capital management.

• Net debt to EBITDA ratio declined to 0.34x, despite higher dividend payout.

Outlook and guidance

• Management expects continued top-line growth and EBITDA margin expansion of up to 1 percentage point for FY 2024.

• EPS growth is projected at 8%-12% for the year, with CapEx intensity expected to reduce to 12%-14%.

• Continued focus on diversifying revenue streams and accelerating profitable growth through capital allocation to new and existing areas.