1 / 18
Mobile Telecommunications Company K.S.C.
2006 Earnings Release
MTC ANNOUNCES A RECORD NET INCOME EXCEEDING USD 1 BILLION
AND REVENUES OVER USD 4.1 BILLION
Financial & Operational Highlights
As of 31 December, 2006, MTC’s customer base exceeded 27 million active
customers* across the Middle East and Africa, representing a 98% increase compared
to 2005.
For the full year of 2006, MTC posted Consolidated Revenues exceeding USD 4.1
billion (KD1.2 billion), a 109% increase
During the same period, MTC recorded an EBITDA of more than USD 2 billion (KD 594
million), a 78% increase
EBIDTA Margin stood at 49% in 2006 compared to 58% in 2005.
The Group recorded a Record Net Income of USD 1 billion (KD 305 million) for the
same period, a 68% increase
MTC’s EPS reached 85 Cents (247 fils) by the end of 2006, a 36% increase compared to
same period last year.
*All customer figures in this earnings release represent active customers, those who have made a chargeable event within a 90 days
period. MTC has retroactively adjusted the customer figures accordingly.
2006
2 / 18
Customers
Table 1: MTC Group Customer Breakdown & Market Positioning
Ownership
(%)
2006
Active Customers
(000s)
2006
Active Customers
(000s)
2005
Growth
(%)
Prepaid
(%)
2006
Market
Positioning
MIDDLE EAST
Bahrain 60% 233 173 35% 80.3% 2
Iraq 30% 3,198 1,073 198% 98.9% 1
Jordan 96.5% 1,961 1,757 12% 88.8% 1
Kuwait 100% 1,461 1,331 10% 74% 1
Lebanon MC 560 509 10% 76.5% -
Sudan* 100% 2,754 1,962 - 97.6% 1
Middle East Total - 10,167 6,805 49% 91.33% -
AFRICA
Burkina Faso 95.7% 518 299 73% 99.9% 1
Chad 100% 348 222 57% 99.8% 1
Congo Brazzaville 90% 683 378 81% 99.8% 1
DRC 98.5% 1,833 1,178 56% 99.9% 1
Gabon 84% 514 365 41% 99.3% 1
Kenya 60% 1,939 1,840 5% 98.1% 2
Madagascar** 100% 331 - - 95.8% 2
Malawi 100% 357 199 79% 99% 1
Niger 80% 397 223 37% 99.9% 1
Nigeria*** 65% 6,396 - - 99.5% 3
Sierra Leone 100% 243 178 37% 99.5% 1
Tanzania 60% 1,517 971 56% 99.6% 2
Uganda 100% 470 291 62% 99.5% 2
Zambia 88.8% 1,325 700 89% 99.6% 1
Africa Total - 16,870 6,845 147% 99.3% -
MTC Group Total - 27,037 13,650 98% 96.3% -
*MTC acquired the remaining stake of Mobitel in February 2006;
**MTC acquired Madacom in December 2005;
***MTC acquired V-Mobile in May 2006;
MC = Management Contract
All figures represent active customers, those who have made a chargeable event within a 90 days period
2006
3 / 18
Nigeria38%
Kenya11%
DRC11%
Tanzania9%
Zambia8%
Rest23%
Celtel InternationalCustomers
Bahrain1%
Iraq12%
Jordan7%
Kuwait5%
Lebanon2%
Sudan10%
Celtel Int.63%
MTC GroupCustomers
As of December 31 2006, MTC Group was operating on 2 continents and was serving 27.037 million active
customers – an increase of 98% compared to the same period last year. The company was present in 20 countries
across Africa and the Middle East with a total population of 470 million people under license – making it the 5th
largest mobile operator in the world in terms of geographic footprint.
The company’s remarkable customer increase was driven primarily by its high-growth African operations; and its
acquisition of the remaining stake in Sudan’s Mobitel and a controlling stake in Nigeria’s third mobile operator,
which alone added over 1.9 million and 5.5 million subscribers at the time of acquisition, respectively. Out of the
20 countries where MTC operates in, 14 subsidiaries are consistently the leading operators while 5 are in second
position; reflecting the company’s core strategy to be the leader in the markets it serves. As of 2006, MTC’s
African operations – through its subsidiary Celtel International – represented 63% of the company’s customer base
while the Middle East operations: Iraq, Sudan, Jordan, Kuwait, Lebanon and Bahrain represented the remaining
customers.
In 2006, MTC’s operation in Iraq – MTC Atheer – was once again the fastest growing operator of the group,
registering a remarkable 198% increase in customers. The second largest growth was registered in Zambia (89%),
followed by Congo Brazzaville (81%) and Malawi (79%). Except for Bahrain which registered a 35% increase in
customers, the more mature Middle Eastern operations grew at an average of 10% compared to 2005. All in all,
MTC’s African operations, through Celtel International, registered a 147% increase in customers while its Middle
Eastern operations registered a 49% increase compared to 2005.
Through the acquisition of the remaining stake Mobitel in Sudan and a controlling stake in V-Mobile in Nigeria,
MTC group added two densely populated and high growth countries to its operation, joining ranks with the
existing operators of Iraq, the Democratic Republic of Congo (DRC) and Kenya. Nigeria’s operation, which was
2006
4 / 18
quickly rebranded as Celtel Nigeria in less than 100 days, now represents over 23% of MTC Group’s customer
base, followed by Iraq (11%), Sudan (10%), Kenya (7%) and DRC (7%).
MTC Group’s 20 operations are mainly composed of prepaid customers, representing over 96% of the total
customer base. Even though MTC’s Middle Eastern operations are over 90% prepaid, the group’s African
operations are the main driver behind this trend, with over 99% of customers owning prepaid lines. This
phenomenon clearly reflects the effects of the cash based economies of Africa and some Middle Eastern countries
such as Iraq. Having a majority of prepaid customers also significantly reduces the credit and collection risks for
MTC’s operations. The operators with the highest postpaid customers include Kuwait (26%), Lebanon (23.5%),
Bahrain (19.7%) and Jordan (11.2%).
Key Operational Events of the Period
6 February, 2006
MTC announces full acquisition of Mobitel in Sudan in a USD 1.332 billion transaction, thus increasing its
stake from 39% to 100%
21 May, 2006
MTC-Vodafone (Bahrain) launched the region’s first high speed 3.5G service – one of the world’s fastest
wireless broadband access technology using mobile phones and Data connect cards.
30 May, 2006
MTC’s Celtel International acquires a controlling stake in Vee Networks (V-Mobile) in Nigeria for USD
1.005 billion. The transaction was Celtel’s largest ever deal and increased MTC’s customer base by over
5.5 million while allowing it to tap into Africa’s most populous nation with some 140 million people.
27 September, 2006
Celtel International launches One Network in Tanzania, Kenya and Uganda – the first ever borderless
mobile network in the world allowing customers in East Africa to move freely across geographic
borders using local tariff rates and recharge cards without paying for incoming calls.
2006
5 / 18
Financial Results
MTC recorded consolidated revenues of USD 4.168 billion (KD 1.210 billion) for the full year of 2006, an increase
of 109% compared to 2005. During the same period, the consolidated EBITDA increased by 78% to reach USD
2.045 billion representing an EBITDA margin of approximately 50%. The company’s net income reached a record
USD 1.050 billion (KD 305.30 million), a 68% increase compared to 2005, representing earnings of USD 0.85 per
share (247 fils).
MTC's performance figures were driven by organic growth, new license awards, and acquisitions over the past
three and a half years since the company embarked on its “3x3x3” expansion strategy. In 2006, MTC Group’s
strong financial performance was spearheaded by its more mature Middle Eastern operations and an impressive
113% increase in Celtel International’s revenues, reaching USD 2.05 billion.
Table 2: Financial Highlights
Consolidated Results 2006 2005 Annual
Growth
Currency USD KD USD KD
Revenues (millions) 4,168 1,210 1,982 580 109%
EBITDA 2,045 594 1,142 334 78%
EBITDA Margin (%) 49 58 -
Net Profit 1,050 305 636 182 68%
EPS 0.85 0.247 0.62 0.182 36%
Kuwait19%
Jordan12%
Bahrain3%
Lebanon1%
Sudan16%
Celtel Int.49%
MTC Group Revenues* (2006)
*Iraq is not consolidated
Kuwait33%
Jordan10%
Bahrain1%
Iraq2%
Lebanon1%
Sudan24%
Celtel Int.29%
MTC Group Net Profit (2006)
2006
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Table 3: Income Statement – Summary
Consolidated Results
(KD m) 2006 2005 Annual Growth
Revenues 1,210 579 109%
Cost of Sales 187 91 107%
Gross Profit 1,023 489 109%
Operating, General and
Administrative Expenses 452 214 111%
EBITDA 594 334 78%
EBITDA % 49% 58% -
Interest Income 18.3 5 296%
Gain from Currency
Evaluation 3.4 5.2 (35%)
Net Profit 305.3 181.9 68%
Table 4: Balance Sheet – Summary
Consolidated Results
(KD m) 2006 2005
Current Assets 692 394
Non-Current Assets 2,785 1,662
Total Assets 3,477 2,056
Current Liabilities 1,043 489
Non-Current Liabilities 947 348
Shareholders’ Equity 1,365 1,186
Minority Interest 122 33
Total Liabilities and
Equity 3,477 2,056
2006
7 / 18
Table 5: Cash Flows – Summary
Consolidated Results
(KD m) 2006 2005
Net Cash from Operating Activities 795 283
Net Cash from Investing Activities (996) (923)
Net Cash from Financing Activities 360 778
Net Increase in Cash and Equivalents 159 138
Cash and Cash Equivalents at end of
Year 474 293
One of the main drivers to the strong financial results of 2006 was the acquisition of the remaining stake in Mobitel
and a controlling stake in Vee Networks (V-Mobile). From the date of the acquisition of Mobitel (6 February 2006),
the Sudanese operation contributed revenues of KD 190.8 million and a net profit of KD 95.9 million to the net
results of the Group. Additionally, from the date of the acquisition of V Mobile (31 May 2006), the Nigerian
operation contributed revenues of KD 177.18 million and net profit of KD 14.22 million to the net results of the
Group. If both acquisitions had taken place on 1 January 2006, the Group revenue and net profit would have been
higher by KD 120.17 million and KD 16.5 million, respectively.
MTC's total equity increased by 22% compared to 2005. Despite the increase, MTC had a robust growth of 36% in
its earnings per share in end of year 2006 (85 Cents) compared to 2005 (31 Cents). At the same time net cash
from operating activities significantly increased from KD 283 million to KD 795 million from 2005.
For year on year comparisons, revenues increases were highest at Celtel International (113%), followed by Bahrain
(53%), Kuwait (13%), Lebanon (7%) and Jordan (7%). Iraq’s revenues, which are not consolidated with the Group’s
results, increased by 142% compared to 2005.
Key Financial Events of the Period 26 July, 2006
MTC signed the general syndication agreement for the US$ 4 billion credit facility to be used to fund
MTC’s future acquisitions and general corporate needs.
06 December, 2006
A USD 1.2 billion Murabaha facility was successfully syndicated and oversubscribed for MTC.
2006
8 / 18
2006 Stock Performance
Table 6: Stock Summary
Stock Summary USD KD
Closing Price (21/3/2007) 16.944 4.900
Paid-Up Capital 435.858 126.181
Share Par Value 0.34 0.100
EPS 0.85 0.247
Market Capitalization (Billions) $21.38 6.182
Year-on-Year Stock Price Growth 67%
P/E multiples 19.8
2006
9 / 18
MTC’s Presence in the Middle East and Africa
2006
10 / 18
Country Insights
Kuwait
Market Overview 2006 2005
Population (000s) 3,200 3,000
GDP/Capita (USD; PPP) 31,333 -
Mobile Penetration (%) 79% 78%
Number of Peers 1 1
Market Positioning 1 1
Ownership 100% 100%
Customers (000s) 1,461 1,331
Postpaid 382 358
Prepaid 1,079 973
Market Share (%) 59% 60%
ARPU ($) 65 64
Financial Performance 2006 2005 Annual
Growth
Net Revenues (USD m) 809 715 13%
EBIDTA (USD m) 540 427 26%
EBIDTA Margin (%) 67% 60% -
CAPEX (USD m) 92 - -
MTC-Vodafone Kuwait, the group’s first
operation, was established in 1983.
Currently there is only one peer in
Kuwait – Wataniya – however a third
mobile operator is to enter the highly
penetrated market.
MTC’s Kuwait operation had a total of
1.46 million active customers by year
end 2006, representing a 10% increase
in active customers compared to 2005.
The operation’s customers accounted
for 5% of MTC total customer base in
the Middle East and Africa regions.
MTC-Vodafone Kuwait’s 2006 revenues
reached a record USD 809 million, an
increase of 13% compared to 2005. The
operation’s revenues accounted for 19%
of MTC’s total – the largest single
source of revenues. Additionally,
EBITDA increased by 26% compared to
2005 and reached USD 540 million.
MTC-Vodafone Kuwait had a high
ARPU of $65 in 2006.
In 2006, MTC-Vodafone Kuwait began
offering brand new services such as
video call. The service was launched at
the 4th annual distributors’ exhibition
and more than 50,000 subscribed to the
video call service in the first launching
week, thus further branching out MTC-
Vodafone Kuwait’s revenue stream into
various value-added services.
MTC-Vodafone
59%
Wataniya41%
Market Share
427 540715 809
353 448
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
2006
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Jordan
Market Overview 2006 2005
Population (000s) 5,900 5,800
GDP/Capita (USD; PPP) 5,359 -
Mobile Penetration (%) 63% 54%
Number of Peers 3 3
Market Positioning 1 1
Ownership 96.516% 96.516%
Customers (000s) 1,961 1,757
Postpaid 221 203
Prepaid 1,740 1,554
Market Share (%) 53% 66%
ARPU ($) 17 24
Financial Performance 2006 2005 Annual
Growth
Revenues (USD m) 485 456 6%
EBIDTA (USD m) 254 242 5%
EBIDTA Margin (%) 52% 53% -
CAPEX (USD m) 62 - -
Jordan’s Fasltlink, is the group’s first
regional operation, and was acquired in
January 2003 for USD 423.9 million.
Currently there are three other peers
in Jordan in what is considered to be
one of the most liberalized telecom
markets in the Middle Eastern region.
MTC’s Jordan operation had a total of
1.961 million active customers by year
end 2006, representing a 12% increase
in active customers compared to 2005.
The operation’s customers accounted
for 7% of MTC total customer base in
the Middle East and Africa regions.
Fastlink’s 2006 revenues reached USD
485 million, an increase of 6% compared
to 2005. The operation’s revenues
accounted for 12% of MTC’s total
consolidated revenues. Additionally,
EBITDA increased by 5% compared to
2005 and reached USD 254 million.
Fastlink had an ARPU of $17 in 2006.
In February 2006, Fastlink signed an
amended license agreement with the
Telecommunications Regulatory
Commission (TRC) of Jordan extending
its operations for another 15 years. The
renewal came as part of measures to
transfer non-category licensees to the
integrated regulatory and licensing
framework, whereby application
becomes an optional choice.
Fastlink, 53%
Umniah, 10%
Express, 7%
MobileCom,
30%
Market Share
242 254
456 485
145 135
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
2006
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Bahrain
Market Overview 2006 2005
Population (000s) 700 700
GDP/Capita (USD; PPP) 27,061 -
Mobile Penetration (%) 110% 109%
Number of Peers 1 1
Market Positioning 2 2
Ownership 60% 60%
Customers (000s) 233 173
Postpaid 46 27
Prepaid 187 146
Market Share (%) 30% 26%
ARPU ($) 31 37
Financial Performance 2006 2005 Annual
Growth
Net Revenues (USD m) 107 70 53%
EBIDTA (USD m) 36 16 125%
EBIDTA Margin (%) 33% 23% -
CAPEX (USD m) 11 - -
MTC-Vodafone Bahrain, the group’s
second regional operation, launched its
services in December 2003. MTC had
won the island’s second GSM license in
April 2003. Currently there is only one
peer in Bahrain – Batelco. Bahrain has
the highest mobile penetration rate in
the region and is leading the way in
offering triple play and Wi-Max services.
MTC’s Bahrain operation had a total of
233,000 active customers by year end
2006, representing a 35% increase in
active customers compared to 2005.
The operation’s customers accounted
for a mere 1% of MTC total customer
base in the Middle East and Africa
regions.
MTC-Vodafone Bahrain’s 2006 revenues
reached a record USD 107 million, an
increase of 53% compared to 2005. The
operation’s revenues accounted for 3%
of MTC’s total consolidated revenues.
Additionally, EBITDA increased by an
amazing 125% compared to 2005 and
reached USD 36 million. MTC-Vodafone
Bahrain had an ARPU of $ 31 in 2006.
Regardless of its population size, the
Bahraini operation is of high importance
to MTC due to its potential to test pilot
new technologies and opportunities. As
an example, MTC-Vodafone Bahrain
launched the region’s first new high
speed 3.5G service in May 2006 and
acquired the license for nationwide Wi-
Max deployment.
MTC-
Vodafone30%
Batelco70%
Market Share
1636
70
107
119
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
2006
13 / 18
Iraq
Market Overview 2006 2005
Population (000s) 29,500 28,800
GDP/Capita (USD; PPP) 1,900 -
Mobile Penetration (%) 30% 16%
Number of Peers 2 2
Market Positioning 1 2
Ownership 30% 30%
Customers (000s) 3,198 1,073
Postpaid 36 38
Prepaid 3,162 1,035
Market Share (%) 36% 23%
ARPU ($) 14 18
Financial Performance 2006 2005 Annual
Growth
Revenues (USD m) 351 145 142%
EBIDTA (USD m) 114 65 75%
EBIDTA Margin (%) 32% 45% -
CAPEX (USD m) 240 - -
The 2-year license for MTC Atheer was
acquired in December 2003 to initially
cover the Southern region of Iraq. Two
other peers had won similar licenses to
cover the central and northern parts of
Iraq. Later on the coverage of MTC
Atheer was expanded to the whole
country and it is expected that MTC
will renegotiate its license with
authorities when its current interim
license expires in March 31, 2007. The
CMC is expected to award four 15-year
licenses in June 2007.
MTC’s Iraq operation had a total of
3.198 million active customers by year
end 2006, representing a record 198%
increase in active customers compared
to 2005. The operation’s customers
accounted for 12% of MTC total
customer base in the Middle East and
Africa regions.
MTC Atheer’s 2006 revenues reached a
record USD 351 million, an increase of
142% compared to 2005. The
operation’s revenues are not
consolidated with MTC’s total revenues.
EBITDA increased by 75% compared to
2005 and reached USD 114 million.
MTC Atheer had an ARPU of $14 in
2006.
The operation is considered as MTC
Group’s operator with the highest
prepaid ratio of customers in the Middle
East, with nearly 99%.
MTC Atheer,
36%
AsiaCell, 31%
Iraqna, 33%
Market Share
65114
145
351
-4
27
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
$0
$100
$200
$300
$400
2004 2005 2006
Revenues (USD m)
$0
$100
$200
$300
$400
2004 2005 2006
Revenues (USD m)
$0
$100
$200
$300
$400
2004 2005 2006
Revenues (USD m)
2006
14 / 18
Lebanon
Market Overview 2006 2005
Population (000s) 3,600 3,600
GDP/Capita (USD; PPP) 5,500 -
Mobile Penetration (%) 31% 28%
Number of Peers 1 1
Market Positioning - -
Ownership 100%* 100%*
Customers (000s) 560 509
Postpaid 132 126
Prepaid 428 383
Market Share (%) 50% 50%
ARPU ($) n/a n/a
*MTC owns the full stake of MTC Lebanon
Financial Performance 2006 2005 Annual
Growth
Revenues (USD m) 58 54 7%
EBIDTA (USD m) 11 7 44%
EBIDTA Margin (%) 18% 14% -
CAPEX (USD m) 0.142 - -
In June 2004, MTC won a 4-year
management contract to operate one of
Lebanon’s two GSM operations.
Rebranded as MTC Touch, MTC has
developed the Lebanese operation to its
full potential in hope that it will be
added to the Group’s portfolio as soon
as the Government undergoes the
process of privatization.
MTC’s Lebanon operation had a total of
560,000 active customers by year end
2006, representing a 10% increase in
active customers compared to 2005.
The operation’s customers accounted
for some 2% of MTC total customer
base in the Middle East and Africa
regions.
MTC Touch’s 2006 revenues reached
USD 58 million, an increase of 7%
compared to 2005. The operation’s
revenues accounted for 1% of MTC’s
total revenues. Additionally, EBITDA
increased by 42% compared to 2005
and reached USD 11 million. MTC
Touch has one of the highest ARPU’s in
the region. All the disclosed revenues
are those from the management
contract and not the total revenues of
the operation which are collected by
the Government of Lebanon.
In 2006, MTC Touch faced a month-
long war which affected the entire
nation, people, network and employees.
However, the entire network was up
and running throughout the conflict.
MTC Touch,
50%
Alfa, 50%
Market Share
7 11
54 58
7 9
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
2006
15 / 18
Sudan
Market Overview 2006 2005
Population (000s) 37,000 36,200
GDP/Capita (USD; PPP) 2,300 -
Mobile Penetration (%) 12% 6%
Number of Peers 2 0
Market Positioning 1 1
Ownership 100% 39%*
Customers (000s) 2,754 1,962
Postpaid 65 -
Prepaid 2,688 -
Market Share (%) 59% -
ARPU ($) 25 -
*Through Celtel International
Financial Performance 2006** 2005 Annual
Growth
Revenues (USD m) 708 - -
EBIDTA (USD m) 415 - -
EBIDTA Margin (%) 59% - -
CAPEX (USD m) 172 - -
**MTC acquired remaining stake in February
In February 2006, MTC acquired 100%
of Mobitel in a deal valued at USD 1.332
billion. Initially, Celtel owned 39% of
Mobitel when it acquired the stake in
March 2001. Sudan is considered one of
Africa’s strategic countries with massive
potential, high economic growth and
large population of some 37 million.
Sudanese authorities have licensed three
other peers to operate mobile
networks, one of which has solely a
CDMA license (Sudani), another which
has solely a GSM license (Areeba) and
the last which now has both (Canar).
MTC’s Sudan operation had a total of
2.754 million active customers by year
end 2006, accounting for over 10% of
MTC total customer base in the Middle
East and Africa regions.
Mobitel’s 2006 revenues reached USD
708 million, an increase of 4% compared
to 2005. The operation’s revenues
accounted for 16% of MTC’s total
revenues. Additionally, EBITDA
increased by 6% compared to 2005 and
reached USD 415 million. Mobitel also
had an ARPU of $25 in 2006.
MTC will develop the Mobitel operation
by expanding its network capacity and
coverage – one of the current weak
points of Sudan’s mobile sector. MTC
also plans to invest approximately USD
500 million through 2007 and will
leverage cross border opportunities
with neighboring Celtel operations.
Mobitel, 59%
Areeba, 20%
Sudani*, 19%
Canar*, 2%
Market Share
393 415
691 708
330
2005 2006
Financials (USD m)
EBITDA Revenues Net Profit
*CDMA operation
2006
16 / 18
Celtel International
Market Overview 2006 2005
Total Countries 14 12
Total Population (000s) 385,485 235,030
Highest GDP/Capita
(USD; PPP)
7,200
(Gabon) -
Lowest GDP/Capita
(USD; PPP)
600
(Malawi) -
Ownership 85% 85%
Customers (000s) 16,870 6,845
Postpaid 112 46
Prepaid 16,758 6,799
Global ARPU ($) 14.0 15.5
Financial Performance 2006 2005 Annual
Growth
Revenues (USD m) 2,050 963 113%
EBIDTA (USD m) 897 454 97%
EBIDTA Margin (%) 44 47 -
CAPEX (USD m) 1,136 - -
MTC acquired Celtel International in
May 2005 for USD 3.36 billion and thus
dramatically expanded its presence in
the African continent. Initially, MTC
acquired 85% of Celtel for USD 2.84
billion with a commitment to buy the
remaining 15% over the next two years,
MTC’s Netherlands-based African
subsidiary had a total of 16.87 million
active customers by year end 2006,
accounting for 62% of MTC total
customer base in the Middle East and
Africa regions.
Celtel’s 2006 revenues reached USD
2.05 billion, a notable increase of 113%
compared to 2005. The operation’s
revenue accounted for 42% of MTC’s
total revenues. Additionally, EBITDA
increased by 98% compared to 2005
and reached USD 897 million. Celtel
had a Global ARPU of $14 in 2006.
In 2006, MTC showcased its dedication
to develop its African portfolio of
operators by acquiring a majority stake
in Nigeria’s V-Mobile and rebranding it
to Celtel Nigeria. MTC will continue to
invest in developing its presence in
Africa either through acquisitions of
new opportunities or service
amelioration of current operations.
Nigeria31%
DRC12%
Zambia9%
Gabon8%
Kenya8%
Tanzania8%
Congo 7%
Rest17%
Celtel International Revenues (2006)
Nigeria35%
Gabon13%
Congo 12%
Zambia9%
DRC7%
Tanzania7%
Niger6%
Burkina Faso5%
Rest6%
Celtel International Net Profit (2006)
2006
17 / 18
Table 7: Celtel International Market Shares and Peers
Operations
Active
Customers
(000s)
2006
Market Share
2006
Market Share
2005 Number of Peers Peers’ Brand Names
Burkina Faso 518 57% 56% 2 Telemob, Telecel;
Chad 348 67% 88% 1 Millicom;
Congo B. 683 71% 65% 1 Libertis;
DRC 1,833 49% 50% 4 Vodacom, Supercell, Starcell,
Sait;
Gabon 514 67% 60% 2 Libertis, Telecel;
Kenya 1,939 28% 39% 1 Safaricom;
Madagascar* 331 41% - 2 Orange, Telma;
Malawi 357 61% 64% 1 TNM;
Niger 397 74% 75% 2 Sahelcom, Telecel;
Nigeria** 6,396 23% - 3 MTN, Glomobile, M-Tel;
Sierra Leone 243 56% 58% 3 Millicom, Comium, Africell;
Tanzania 1,517 33% 29% 3 Vodacom, Mobitel, Zantel;
Uganda 470 20% 18% 2 MTN, UTL;
Zambia 1,325 79% 82% 2 Telcel, Zamtel;
* MTC acquired Madacom in December 2005; ** MTC acquired 65% of Nigeria’s V-mobile in May 2006.
Table 8: Celtel International Financial Breakdown (2006)
Operations Revenues
(USD m)
Revenues
Growth
2005-2006
EBITDA
(USD m)
Net Profit
(USD m)
ARPU
(USD)
CAPEX
(USD m)
Burkina Faso 61.2 45% 28 17.4 13 34
Chad 65.4 31% 26.3 6.1 19 30
Congo B. 143.5 56% 56.6 41.7 24 36
DRC 253.2 33% 91 24.1 14 106
Gabon 164.6 44% 88.7 47.6 31 42
Kenya 174.3 11% 51.1 (11.2) 7 38
Madagascar 35.6 - 11.7 6.1 11 14
Malawi 42.2 43% 16.9 3.4 12 26
Niger 61.1 43% 29.4 20.4 16 27
Nigeria* 609.8 - 221 74.6 14 384
Sierra Leone 44.8 2% 13.4 4.6 18 23
Tanzania 169.6 27% 62.9 26.6 12 80
Uganda 39.8 35% 0.2 (15.5) 9 18
Zambia 190.2 111% 84.6 31.3 16 105
* MTC acquired 65% of Nigeria’s V-mobile in May 2006 - all Nigeria financials represent 7 month to December 2006.
2006
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About the MTC Group
The MTC Group is a pioneer in mobile telecommunications in the Middle East and on the African continent. The
company was incorporated in 1983 in Kuwait as the region’s first mobile operator and since the initiation of its
“3x3x3” profitable expansion strategy in 2003, it has grown very rapidly becoming the 5th largest
telecommunications company in the world in terms of geographic presence with a footprint in 20 countries.
MTC is a leading mobile operator in 6 Middle Eastern and 14 sub-Saharan African countries with over 12,700
employees, providing a comprehensive range of mobile voice and data services to over 27 million active individual
and business customers (as of December 31, 2006).
The company operates in Kuwait and Bahrain as mtc-vodafone, in Jordan as Fastlink, in Iraq as mtc atheer, in
Lebanon as mtc touch, in Sudan as Mobitel and in 14 sub-Saharan countries in Africa as Celtel: Burkina Faso, Chad,
Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Madagascar, Niger, Nigeria,
Sierra Leone, Tanzania, Uganda and Zambia.
In January 2007, MTC launched ACE - an implementation strategy to realize the target of the 3x3x3 vision. ACE
seeks to extract superior value from existing assets through three main thrusts: Accelerating the growth in Africa;
Consolidating the existing assets; and Expanding into adjacent markets.
Based on organic growth and through ACE, MTC’s new goals by the year 2011 are to:
•serve 70 million customers,
•attain a USD 6 billion EBITDA
•reach a market capitalization of USD 30 billion, becoming one of the top 10 mobile operators in the world.
The Parent Company and its subsidiaries (the Group) provide mobile telecommunication services under licenses
from Governments of the countries in which they operate; purchase, deliver, install, manage and maintain mobile
telephone and paging systems; and invest surplus funds in investment securities.
The Group recorded revenues of USD 4.168 billion and net profit of USD 1.050 billion during the year ended
December 31, 2006. The Kuwait Investment Authority owns 24.6% of the company’s shares.
The Mobile Telecommunications Company KSC (the Parent Company) is a Kuwaiti shareholding company and its
shares are traded on the Kuwait Stock Exchange (KSE Ticker: TELE, RIC: TELE.KW; Bloomberg Code: TELE.KK).
The Company’s share price as at March 21, 2007 was 4.900 Fils, giving a Kuwait Stock Exchange market valuation
for MTC of KD 6.182 billion (USD 21.378 billion).
The authorized, issued, and fully paid up share capital of the Parent Company as at December 31, 2006 consists of
1,261,819,591 shares of 100 Fils each.
For more information please visit www.mtctelecom.com
1 USD = KD 0.2896
NOTE: ALL MIDDLE EAST POPULATION AND GDP PER CAPITA FIGURES WERE TAKEN FROM THE ECONOMIST
INTELLIGENCE UNIT (EIU). ALL AFRICA POPULATION AND GDP PER CAPITA FIGURES WERE TAKEN FROM THE CIA
FACTBOOK. THE PENETRATION RATES ARE ESTIMATED AND TAKE INTO CONSIDERATION THE ENTIRE
POPULATION OF A COUNTRY, NOT THE ADDRESSABLE MOBILE POPULATION.