Bloomberg News

Vodafone Qatar Resumed With Hold at NBK Capital on New Services

November 26, 2012

Vodafone Qatar was restarted with a hold recommendation at NBK Capital on bets the venture between Vodafone Group Plc (VOD) and Qatar Foundation will benefit from new services and an increase in mobile-phone market share.

“Vodafone Qatar mobile operation continues to gain traction, with its subscriber market share increasing to 30 percent at the end of September,” analysts Shrouk Diab and Alok Nawani said in a research note dated yesterday. Market share may reach 36 percent by 2017 and the start of postpaid services “should help improve revenue growth momentum by enabling the operator to target high-value retail and business segments,” they said.

Vodafone Qatar, which broke the monopoly of Qatar Telecom QSC when it began operations in 2009, has been narrowing yearly losses since then, according to data compiled by Bloomberg. It posted a loss of 240 million riyals ($66 million) in the six months ended Sept. 30, while revenue grew 18 percent to 696 million riyals.

NBK Capital restarted the shares with a price estimate of 9.3 riyals. The stock has gained 14 percent this year compared with an 11 percent increase for Qatar Telecom and 4 percent decline for the benchmark QE Index. (DSM)

“Vodafone Qatar fixed-line network roll-out is expected to gain traction with the activation of its network share agreement with Qatar National Broadband Network in the second quarter of 2013,” according to the research note. The company may have a 20 percent share of the fixed-line market by 2017, NBK Capital said.

To contact the reporter on this story: Dahlia Kholaif in Kuwait at

To contact the editor responsible for this story: Shaji Mathew at

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