LOWER TAX | Page 5 UK CONCERN | Page 15 Ford reports Labour alarms better net bankers with profi t in Q2 Robin tax plan Thursday, July 27, 2017 Dhul-Qa’da 4, 1438 AH GROWING STRONGER: Page 16 GULF TIMES Blockade opens opportunities for BUSINESS SMEs in Qatar QEWC reports 2.44% rise in H1 net profit Ooredoo Group posts to QR810.56mn Qatar Electricity and Water Company (QEWC) has reported 2.44% year-on-year jump in net profit to QR810.56mn in the first six months of this year. The company has seen 1.32% increase in sales to QR1.54bn in the review period. Although operating profit fell 11.08% to QR625.15mn, QEWC witnessed more than 54% expansion in the QR1.1bn H1 net profi t share of profits of joint ventures to QR286.58mn. Its joint ventures are Qatar Power (in which QEWC has oredoo Group has posted a net profi t by 14% year-on-year (y-o-y) to reach al- 55% equity stake), Mesaieed Power Company (40%), of QR1.1bn in the fi rst half of this most 150mn driven by strong growth across Ras Girtas Power Company (45%), Nebras Power Oyear. major markets. Quarter on quarter customer (60%) and Umm Al Houl Power (60%). This, however, is down 25% compared numbers slightly increased. Its total assets were valued at QR15.07bn comprising with the same period last year. Net profi t The telecom major said its data leadership current assets of QR4.09bn (including QR2.98bn in in H1, 2016 benefi ted from signifi cant for- with 4G roll-out was continuing in multiple bank balances and cash) and non-current assets of eign exchange gains of QR540mn. However, markets; 4G networks are now available in QR10.98bn at the end of first half ended June 30, 2017. these temporary gains were reversed in the eight of Ooredoo’s markets. The non-current assets majorly comprised property, second half of the year. On the results, Ooredoo Group chairman plant and equipment valued at QR5.92bn, investments Ooredoo Group revenue in the fi rst half HE Sheikh Abdulla bin Mohamed bin Saud of QR2.9bn in joint ventures and finance lease of this year increased to QR16.3bn, an im- al-Thani said, “This has been a very good receivables of QR1.31bn. provement of 2% over H1, 2016. fi rst half of the year for Ooredoo Group. We Total equity stood at QR8.35bn on a capital base of In local currency terms, growth was driven delivered growth in revenues and EBITDA, QR1.1bn and earnings-per-share of QR7.37 at the end by Ooredoo Qatar, Ooredoo Oman, Ooredoo and our strategy to optimise effi ciencies of June 30, 2017. Kuwait, Ooredoo Tunisia, Asiacell, Indosat across our diverse portfolio resulted in an Ooredoo and Ooredoo Maldives. Excluding improved group EBITDA margin to 43%. foreign exchange translation impact, rev- “With customers at the heart of our busi- enues increased by 3% year-on-year. ness, Ooredoo delivered a 14% increase in cus- Fed holds interest rates steady Group EBITDA increased by 7% to almost tomer base and we are now proudly serving al- QR7bn with an improved EBITDA margin of most 150mn customers across our operations. The Federal Reserve kept interest rates unchanged 43%, indicating a “strong” operational per- “At the core of our strategy is our vision yesterday and said it expected to start winding down its formance and “good” cost control. Exclud- to enable more people to be able to enjoy the massive holdings of bonds “relatively soon” in a sign of ing Foreign Exchange translation impact, Internet. As part of this approach, Ooredoo confidence in the US economy. EBITDA increased by 8% year-on-year. continued to build our data leadership, en- The US central bank kept its benchmark lending rate in a Continued strong data growth from con- hancing our networks, growing the range of target range of 1.00% to 1.25% and said it was continuing sumer and enterprise customers drove data content and applications available and pro- the slow path of monetary tightening that has lifted rates revenue to QR7.2bn in H1, 2017; equivalent viding more self-service and self-care op- by a percentage point since 2015. to 44% of Group revenue. tions for customers. We have also increased In a statement following a two-day policy meet- Group B2B revenue increased to 17% of the range of services available to business ing, the Fed’s rate-setting committee indicated the group revenue (QR2.8bn) in H1, 2017 refl ect- customers across our footprint, enabling economy was growing moderately and job gains had ing Ooredoo’s ongoing investment in serv- companies to deliver more services online. been solid. ices for business customers. These strategic initiatives are making a posi- But it noted that both overall inflation and a measure of Ooredoo Group customer base increased tive diff erence, as refl ected on H1 results.” underlying price gains had declined and said it would “carefully monitor” price trends. Ooredoo Qatar has 3.5mn customers “The committee expects to begin implementing its bal- HE Sheikh Abdulla: Optimising eff iciencies across a diverse portfolio. ance sheet normalisation programme relatively soon,” Ooredoo Qatar delivered a “positive” to enable more people to enjoy the Internet the Fed said, adding that it would follow a plan outlined performance in H1, registering growth in at ultrafast speed. The company was the Ooredoo Group chief executive offi cer “Ooredoo Qatar produced a positive per- in June. revenue, EBITDA and customer numbers. first in the region to successfully upgrade Sheikh Saud bin Nasser al-Thani said, “Dur- formance in terms of revenue, EBITDA and After pushing rates nearly to zero to fight the 2007-2009 First-half revenue stood at QR4bn, slightly one of its ‘4.5G LTE-Advanced Pro’ cell ing the fi rst six months of the year, Ooredoo customer numbers in our domestic market. financial crisis and recession, the Fed pumped over $3tn higher than in the same period in 2016. sites to support CAT 16-enabled devices, has made good operational improvements So did Indosat Ooredoo, which delivered an- into the economy in a bond-buying spree to further Customer numbers reached 3.5mn, a 4% providing data speeds of up to 1 Gbps. across its business, delivering an increase other outstanding performance this quarter. reduce rates. increase over last year’s first half (3.4mn). The company’s entertainment portfolio in revenues of 2% over the same period last Ooredoo Oman increased the revenue by Its balance sheet has grown to $4.5tn. EBITDA stood at QR2bn for H1, 2017, 4% continued to perform strongly, with its year. In local currency terms, growth was 2%, whilst customer numbers were up 9%. Unwinding the balance sheet will mark the end of a above the same period last year (QR1.9bn). Ooredoo tv service reaching more than driven by Ooredoo Qatar, Ooredoo Oman, Despite diffi cult market conditions, Oore- controversial tool that drew criticism from Republican Ooredoo continued to upgrade its network 100,000 customers in May. Ooredoo Kuwait, Ooredoo Tunisia, Asiacell, doo Kuwait reported 4% growth in revenues lawmakers in Congress. Indosat Ooredoo and Ooredoo Maldives. and a signifi cant 25% growth in EBITDA.” Qatar overall growth not to be affected by blockade, says Qatari economist Ezdan Holding H1 profi t Reuters “Prices could Dubai see an increase in some of jumps 25% to QR1.16bn the items af- With the planned increase in its liquefied natural fected by the gas production taking shape, Qatar’s overall growth sanctions due zdan Holding Group has reported a is not expected to be aff ected in the medium term to re-routing signifi cant 25% year-on-year increase by the blockade imposed on it by a coalition led by of supply Ein net profi t to QR1.16bn for the period Saudi Arabia, a Qatari central banker has said. lines, shipping ending ended June 30, 2017. Qatar has hundreds of billions of dollars of financial costs, or price Earnings-per-share was QR0.44 during reserves that could be used to support its banks to increases from January-June 2017 compared to QR0.35 in counter possible capital outflows, Khalid Alkhater the sources,” the same period last year. (pictured) said. Alkhater said. Ezdan chairman Sheikh Dr Khalid bin “We do have deposits from Saudi Arabia and the “This is generally a cost-push inflation in the possi- Thani bin Abdullah al-Thani attributed the UAE in the range of $15bn to $20bn with a one-year ble range of 1% or slightly above...There is not much strength in net earnings to the ongoing ex- range of maturity,” he said. “We do not expect it to room to pressure the economy through trade sanc- pansion of its sectors, as the group launched roll over. The amount is very small and manage- tions and the eff ect will be limited,” he said, noting the fi rst stages of all its projects that were able.” that there was little cross-border trade between under construction during last year and the Alkhater added, “I suggested among other meas- Gulf Arab countries. fi rst half of the current year. ures that if the blockade countries withdraw their Asked if the central bank now needed to conduct “We have achieved remarkable achieve- deposits or freeze Qatari assets, we retaliate by a more independent monetary policy to deter pos- ments over the past six months, through doing the same. The government can also increase sible capital flight, Khalid Alkhater said by phone launching our real estate, hotel and shop- its deposits with local banks if needed.” from Qatar, “That depends on an internal assess- ping centres projects.