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VIVA Records KD 40 Million as a Net Profit In 2017

Kuwait, 1 February 2018: VIVA, Kuwait’s fastest-growing and most developed telecom operator, announced the financial results for the full year ended on 31 December 2017; whereby VIVA’s revenues reached KWD 278 million compared to KD 279 million recorded during 2016; whereas the net profit in 2017 reached KWD 40 million. On quarterly basis VIVA recorded a remarkable performance with revenues rising by 7.2% to reach KD 73.4 million during Q4-2017 compared to KD 68.5 million recorded during the same quarter in 2016. On the other hand, VIVA achieved a 10% growth in net profit of KD 11.8 million during Q4-2017 compared to a net profit of KD 10.8 million reported during Q4-2016. These results reflect VIVA's focus on achieving superior customer experience, high quality of services, innovative promotions and packages offered to its customers to meet their needs and expectations, inspired by our customers’ confidence which motivates us to provide the best services with the highest possible quality.

 

Commenting on announcing the annual financial results, Dr. Mahmoud Ahmed Abdulrahman, VIVA’s Chairman, has stated that “Despite the high competition witnessed in the Kuwaiti Telecom Market, VIVA was able to achieve a growth in the profitability and sustain the operational efficiency to ensure generating positive return to our shareholders. VIVA achieved these results due to an integrated management approach by a highly professional team that reinforces VIVA's substantial and positive role as a leading telecommunications company that always provides intelligent communications solutions to satisfy the needs of its customers and meet their needs.”

 

He added that “VIVA has demonstrated its ability to achieve a growth in the net profit amidst the current hard economic conditions and strong competition witnessed in the year 2017 which resulted from the decline in telecom tariffs thus pressurizing the profit margin of all telecom companies in Kuwait. VIVA managed to achieve net profit of KWD 40.1 million (earnings per share of 80 fils) during the FY 2017 growing at 1% compared to net profit of KWD 39.8 million (earnings per share of 80 fils) during FY 2016.

On the other hand, VIVA has enhanced shareholders' equity base to stand at KWD 168 million at the end of 2017 with a growth rate of 26% compared to 2016. These results achieved by VIVA during 2017 reflect the efficient business strategy adopted by the company to achieve outstanding results in-spite of the increasing competitiveness. Also, VIVA managed to achieve positive earnings for its shareholders as a result of the commitment to elevate the quality of customer service and improving the operational efficiency”. The Board of Directors has recommended distributing cash dividends of 30 fils among the shareholders representing30 percent of the nominal share value for the year ended 2017 subject to the approval of the Ordinary General Assembly of the company.

On his part, Eng./ Salman bin Abdulaziz Al Badran , VIVA’s CEO said that “Results of 2017 came in line with VIVA goals and ongoing ambitions to achieve an increase in its operational businesses and strengthen its leadership in the telecom market. It is noteworthy to mention that VIVA won this year “Speedtest Award Winner 2017 – Kuwait’s Fastest Mobile Network” by Ookla, and it is pioneer in the middle east in providing the latest products and services to its customers among telecom operators in the middle east region, and achieved successfully the establishment of the first Voice Over LTE (VoLTE) interconnection in the Middle East and North Africa region in partnership with local networks, and was the first telecom company in Kuwait that has successfully tested the fifth-generation “5G” in its lab, which fosters its leadership in providing the latest technology that will enable customers to exchange information and communicate at higher speeds. Al Badran added that “We have exerted great efforts in 2017 through our integrated team work to establish a solid and strong base that insures the company’s continuing successes in light of the strong competition in the Kuwaiti telecom market. VIVA achieved good levels of revenues and record a growth in the profitability in addition to improving the company’s financial and operational efficiency. As a result, VIVA recorded revenues of KWD 278 million during FY 2017 and achieved net profit of KWD 40.1 million (earnings per share of 80 fils) in 2017, whereas the operating profit has reached KWD 42.6 million during the same year. On the other hand, VIVA customer base has reached 2.3 million at the end of December 2017.

 

On his part, Mr. Mohammed Bin AbdulMohsen Al-Assaf, VIVA’s CFO, said that “During 2017, VIVA’s financial results reflected its ability to compete and achieve growth in revenues during Q4-2017, 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 0.05x at the end of 2017 as compared to 0.36x recorded at end of 2016. On the other hand, VIVA managed to sustain healthy profitability ratios in light of intense competition where Return On Assets (ROA) has reached 14% while return on shareholders' equity (ROE) has reached 24% in 2017. “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” he added.

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