Vodafone Qatar continues fiscal haemorrhage
Losses approach $66m over past two quarters
Vodafone Qatar's losses increased in the six months to September 30, 2012, reaching QR 240 million ($65.9m), compared with a net loss of QR 237.3 million for the same period last year.
The company, which is 23% owned by the UK's Vodafone Group, reported a loss per share (LPS) of QR 0.28 as of September 30, 2012, compared to an LPS of QR 0.28 for the corresponding period in 2011.
The operator, which competes with Qatar's incumbent operator, Qtel, expanded its mobile customer base by 7% in the three months to September 30, to reach 936,300 customers.
Vodafone Group has also extended a contract to manage its Qatari affiliate, Vodafone Qatar, until 2018 and will take a smaller percentage of its revenues under the new terms, according to a report from Reuters.
Vodafone owns 23% of Vodafone Qatar and took responsibility for managing the operation in June 2008 for an initial period of five years, the report added.
"The new agreement sees the fee payable to Vodafone reduced (as a percentage of revenue) to reflect the increased scale of the business and the transition to a fixed and mobile operation," the company said in a statement.
Previously, Vodafone Qatar paid 5% of its revenue in management fees, but this has been cut to a maximum of 3.5%, according to Reuters.