"Dysfunctional Banking System" affects Asiacell Business

By John Lee.

In its results for the first nine months of the year, Qatar-based Ooredoo said this morning that business at its Iraqi subsidiary Asiacell is still affected by the political and economic situation in the country, a "dysfunctional banking system", and VAT impact.

Despite these challenges, Asiacell maintained its revenue leadership in the market and according to the company is well positioned to capture growth as the situation on the ground improves. Customer number increased by 5% to 11.2 million on our leading 3G network.

For the 9M 2016 period, Asiacell's Revenue declined by almost 15% to reach QAR 3.2 billion, down from QAR 3.7 billion in 9M 2015.  

Due to cost optimization initiatives EBITDA was less impacted, registering QAR 1.5 billion in 9M 2016, down 9% as compared to the same period last year. Net Profit for 9M 2016 stood at QAR 79 million, down from QAR 152 million in 9M 2015.

(Source: Ooredoo)

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