Vodafone Qatar (VFQS) Q2 2024 earnings summary

Executive summary

• Revenue grew 2.2% year-over-year in H1 2024 to QR 1,585m, with net profit up 12.8% to QR 293m, driven by market rationalization, cost optimization, and removal of expired discounts.

• Revenue market share increased by 2.6 percentage points year-over-year to 30.5% (Q1 TTM), and mobile subscriber base grew 2.9% year-over-year.

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

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

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

Financial highlights

• Service revenue grew 2.8% year-over-year in H1 2024, with all segments (mobility, fixed, managed services) registering growth.

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

• Net profit margin rose to 18.5%, up 1.1 percentage points year-over-year.

• Operating cash flow rose 42.5% year-over-year, reflecting strong collections and working capital optimization.

• Net debt-to-EBITDA improved to 0.34x, with net debt reduced by 28.6% year-over-year.

Outlook and guidance

• Management expects continued top-line growth and 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%.