Vodafone Qatar (VFQS) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 reached QR 2,387 million, up 3.9% year-over-year, with net profit at QR 437 million, an 11.5% increase year-over-year and net profit margin surpassing 18%.

• EBITDA exceeded QR 1 billion for the first time in a nine-month period, growing 6.4% year-over-year, with an EBITDA margin of 42.3%.

• Revenue market share increased by 2.1 percentage points year-on-year to 30.7%, marking twelve consecutive quarters of gains.

• Growth was broad-based across prepaid, postpaid, fixed, and equipment sales segments, supported by new product launches like Instant SIM and revamped postpaid plans.

• Strategic partnership with Microsoft to support digital transformation and diversification into non-core technology solutions.

Financial highlights

• Total revenue grew 3.9% year-on-year for the nine months, driven by a 2.8% increase in service revenue across all segments.

• Net profit reached QR 437 million, up 11.5% year-on-year, with basic and diluted EPS at QR 0.103.

• EBITDA grew 6.4% to QR 1,011 million, with margin expanding by 1 percentage point to 42.3%.

• Operating cash flow increased 20% year-on-year, and net debt reduced by 31%, with net debt/EBITDA ratio improving to 0.25x.

• Q3 2024 revenue rose 7.3% year-on-year, with a 2.8% increase in service revenue and a one-off QAR 34 million in non-recurring project revenue.

Outlook and guidance

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

• EPS growth projected at 8-12% for the full year; CapEx intensity expected to remain between 12-14%.

• Board approved interim financials on 23 October 2024, indicating continued focus on operational efficiency and shareholder returns.