Wateen Telecom Limited has recently announced its results for the first quarter of 2010/11. It has posted revenue of Rs. 1,931 million with Rs. 383m positive EBITDA against a EBITDA loss of Rs. 110 million for the same period last year. Since the last quarter of 2010, Wateen is continuously showing a positive trend in terms of revenues and profitability. Wateen is capitalizing its unique strategic position as nationwide optic fiber operator, system integrator, broadband services provider and key LDI operator all under one umbrella. Management has aligned the organization to focus more on profitable revenue streams reflected in gross margin which stands at 31% in the first quarter compared to 14% for the same period last year. Through implementation of cost rationalization program and operational efficiency initiatives, management has managed to keep the cost under control without compromising on quality of services.
“Wateen is committed to add value for its shareholders, and investors with medium to long term view are going to reap substantial benefit for their investments. I am proud of my team which is devoted day in day out for delivering of such remarkable results against all the odds.” said Tariq Malik, CEO Wateen Telecom. Wateen’s Sponsors’ have also provided over USD 24 million during the quarter and further cash injection is also committed for the 2nd quarter keeping in view the business requirements.
Future Outlook
Wateen has undertaken a number of steps to build shareholder value through various cost optimization and rationalization programs. One such program has been the in-house development, deployment and support of various business critical BSS modules such as CRM, TMS, customer self-care and Business Intelligence (MIS). Wateen has also achieved significant reductions in its operating expenses to mitigate the affect of inflationary pressures on Pakistan’s economy. Similarly, by bringing various Engineering operations in-house, Wateen has not only reduced its operating expenses further, but also gained considerable insight and control over customer experience. Most of the growth in infrastructure for Wateen has been facilitated through a subsidy from USF (approximately Rs. 1.8 billion for fiber optic expansion), which directly enhances the bottom line. Currently, Wateen has the second largest optical fiber network in Pakistan and expanding.
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