By John Lee.
Mobile operator Asiacell has posted an 8 percent drop in sales in the first half of 2014, due to the security situation and increased competition.
In its first half results its parent company, the Qatar-based Ooredoo, made the following statement:
“Asiacell faced a growing wave of political and social instability during the period, allied to the effects of an increasingly competitive market.
“Consequently, revenue for the first half of 2014 was QAR 3,220 million (1H 2013: QAR 3,502 million), a decrease of 8%; EBITDA was down by 17% to QAR 1,544 million and EBITDA margin was also down to 48% from 53%.
“Asiacell focused on a number of cost efficiencies during the period in the face of growing competition whilst continuing its roll-out programme of network modernisation to ensure Asiacell customers continue to benefit from Iraq’s best and most reliable network.
“Consequently, Asiacell’scustomer base grew by 10.6% to 11.6 million compared to the first half of 2013. In response to the political and social situation in the country, Asiacell is monitoring the situation carefully and has a range of contingency plans in place to ensure the continued operation of the business.”