VIVA announces revenue of KD 140 million
VIVA, Kuwait’s fastest-growing and most developed telecom operator, announced the financial results for the six-month period ended 30th June 2016, whereby VIVA’s revenue grew by 4% to reach KD 140 million compared to the same period in 2015. VIVA achieved these results due to the high quality of services, promotions and packages offered to its customers to meet their needs and expectations, inspired by our customers’ confidence. Moreover, VIVA customers’ base reached 2.4 million by end of June 2016.
Despite the high competition witnessed in the Kuwaiti telecom market, VIVA managed through its operational and financial strategy to achieve a net profit of KD 19.4 million (earning per share 39fils) during the first half of 2016 compared to KD 21.6 million (earning per share 43fils) recorded during the same period last year. On the other hand, VIVA’s shareholders equity base increased by 57% to reach KD 112.3 million at the end of June 2016 compared to KD 71.5 million at the end of June 2015.
Commenting on the financial results, Dr Mahmoud Ahmad Abdulrahman, VIVA’s Chairman, said: “Despite the high competition witnessed in the Kuwaiti Telecom Market, VIVA was able to achieve growth in revenues, good profitability levels, in additions to maintain the operational efficiency that led to generating positive return to our shareholders during the first half of 2016.
The witnessed growth in VIVA’s revenues was a result of the company’s strategy plans and efforts to be among the most developed telecommunications companies in the state of Kuwait and the region, as we always look forward to play a central role in providing smart telecom solutions in order to provide our customers with the best and most advanced telecom services. Dr Mahmoud added “These results reflect the hard work and the dedication of the management and employees reaffirming our commitment to achieve excellent outcomes”.
Eng Salman Bin Abdulaziz Al-Badran, VIVA’s Chief Executive Officer said: “VIVA continued during 2016 to achieve growth in operating revenues despite the high competition we are witnessing in the Kuwaiti telecom market. It is noteworthy to mention that VIVA has been awarded by the Arabian Business organization as “Best Telecom Company”, in recognition of its exceptional performance in 2015 and as a result of VIVA’s commitment to enhance customer service quality and improve the operational efficiency.
In addition VIVA has been recognized as “Best Contact Centre Experience” and “Best Network Experience” by the “International Quality & Productivity Centre”. He added: “With the high competition in the Kuwaiti telecom market, VIVA’s strong revenue performance contributed to maintain a good profitability level as a result of company’s financial & operating capacity and efficiency. VIVA recorded a revenue of KD 140 million during the first half of 2016representing an increase of 4% when compared to same period last year and this has resulted in achieving a net profit of KD 19.4 million (earnings per share of 39fils), while the operating profit reached KD 20.4 million during the first half of 2016.
Al-Badran concluded: “As a continuing strategy, VIVA always seeks to provide a high quality products and services to its customers. In addition, VIVA contributes to the development of the telecommunications sector in the state of Kuwait by maintaining its presence through providing the latest advanced technology and services as well as the best offers to its individual and corporate customers.”
Abdulaziz Abdullah Al Qatie, Chief Financial Officer at VIVA said: “During the first half of 2016, VIVA’s financial results reflected its ability to compete and achieve growth in revenues, and maintain its position as the second largest telecom operator in the Kuwaiti market in term of revenues in the telecom sector. The company managed to decrease its leverage ratio due to its conservative financial policy to reach 1.4x at end of June 2016 as compared to 2.5x recorded at end of June 2015.
The strong operating performance has positively affected free cash flow to achieve growth of 7% during the first half of 2016 as compared to the same period in 2015.” He added: “We will continue our hard work in implementing our strategy to maintain our competitive edge and achieve further growth and success in the Kuwaiti telecom market through offering innovative products and services in line with the latest technology to meet our customers’ needs.”