MIRA INFORM REPORT

 

 

Report Date :

11.11.2013

 

IDENTIFICATION DETAILS

 

Name :

NATIONAL MOBILE TELECOMMUNICATIONS CO KSC

 

 

Formerly Known As :

WATANIYA TELECOM

 

 

Registered Office :

Al Wataniya Telecommunication Tower, Block B, 8th Floor, Ahmad Al Jaber Street, Al Sharq, PO Box 613, Safat 13007

 

 

Country :

Kuwait

 

 

Financials (as on) :

3.1.12.2012

 

 

Date of Incorporation :

12.10. 1997

 

 

Com. Reg. No.:

73211, Safat

 

 

Legal Form :

Kuwaiti Shareholding Company

 

 

Line of Business :

Subject engaged in the supply and provision of mobile telephone and paging systems, wireless voice and data network services and related services in Kuwait.

 

 

No. of Employees :

Approximately 1100

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Kuwait

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

KUWAIT - ECONOMIC OVERVIEW

 

Kuwait has a geographically small, but wealthy, relatively open economy with crude oil reserves of about 102 billion barrels - about 7% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income. Kuwaiti officials have committed to increasing oil production to 4 million barrels per day by 2020. The rise in global oil prices throughout 2011 and 2012 is reviving government consumption and economic growth. Kuwait has experienced a 20% increase in government budget revenue, which has led to higher budget expenditures, particularly wage hikes for many public sector employees. Kuwait has done little to diversify its economy, in part, because of this positive fiscal situation, and, in part, due to the poor business climate and the historically acrimonious relationship between the National Assembly and the executive branch, which has stymied most movement on economic reforms. In 2010, Kuwait passed an economic development plan that pledges to spend up to $130 billion over five years to diversify the economy away from oil, attract more investment, and boost private sector participation in the economy.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : NATIONAL MOBILE TELECOMMUNICATIONS CO KSC

Also Known As                                     : WATANIYA TELECOM

Country of Origin                                   : Kuwait

Legal Form                                           : Kuwaiti Shareholding Company - KSC

Registration Date                                  : 12th October 1997

Commercial Registration Number           : 73211, Safat

Trade Licence Number                           : 97/50

Chamber Membership Number               : 55969

Issued Capital                                       : KD 50,403,276

Paid up Capital                                     : KD 50,403,276

Total Workforce                                     : 1,100

Activities                                               : Providers of mobile telephone communication services.

Financial Condition                                : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                    : Steady

 

COMPANY NAME

 

NATIONAL MOBILE TELECOMMUNICATIONS CO KSC

 

ALSO KNOWN AS

 

WATANIYA TELECOM

 

 

ADDRESS

 

Registered & Physical Address

 

Building            : Al Wataniya Telecommunication Tower, Block B, 8th Floor

Street               : Ahmad Al Jaber Street

Area                 : Al Sharq

PO Box            : 613

Town                : Safat 13007

Country             : Kuwait

 

Telephone         : (965) 22435500 / 22433782 / 1805555

Facsimile          : (965) 22436600 / 22433946 / 22423369

Email                : info@wataniya.com

 

Premises

 

Subject operates from a large suite of offices that are owned and located in the Central Business Area of Safat.

 

Branch Office (s)

 

Location                                                                                               Description

 

Kuwait Airways Building                                                                         Retail outlet

Safat

 

Souk Al Kabir                                                                                        Retail outlet

Fahed Al Salem Street

Kuwait City

 

Marina Mall                                                                                           Retail outlet

Salmiya

 

Beirut Street                                                                                          Retail outlet

Hawalli

 

Mecca Street                                                                                         Retail outlet

Fahaheel

 

Farwaniya Co-op                                                                                   Retail outlet

Farwaniya

 

Shaha Complex                                                                                     Retail outlet

Salem Mubarek Street

Salmiya

 

Dabous Complex                                                                                  Retail outlet

Mecca Street

Fahaheel

 

Dobol Al Khuzae Street                                                                         Retail outlet

Jahra

 

 

KEY PRINCIPALS

 

Name                                                                                                   Position

 

Sheikh Abdullah Bin Mohamed Bin Saud Al Thani                                    Chairman

 

Ali Shareef Al Emadi                                                                             Vice Chairman

 

Dr Naser Mohamed Abdullah Marafih                                                     Director

 

Saleh Yousef Nasser Al Saqoubi                                                           Director

 

Dr Mahmoud Ahmed Mahmoud                                                              Director

 

Fahed Othman Mizaal Al Saeed                                                              Director

 

Sheikh Mohamed Bin Abdulla Al Abdulrahman Al Thani                           Director

 

Dr Bassam Hannoun                                                                              Chief Executive Officer

 

Abdul Aziz Fakhroo                                                                               Deputy Chief Executive Officer

 

Peter Kuncewicz                                                                                    Chief Financial Officer

 

Saleh Al Houti                                                                                       Chief Regulatory Officer

 

Hisham Siblini                                                                                       Chief Technology Officer

 

Dr Yousef Al Sellili                                                                                Human Resources Manager

 

LEGAL FORM & OWNERS

 

Date of Establishment                          : 12th October 1997

 

Legal Form                                          : Kuwaiti Shareholding Company - KSC

 

Commercial Reg. No.                           : 73211, Safat

 

Trade Licence No.                                : 97/50

 

Chamber Member No.                          : 55969

 

Issued Capital                                      : KD 50,403,276

 

Paid up Capital                                    : KD 50,403,276

 

Name of Shareholder (s)                                                           Percentage

 

Qatar Telecommunications Co (QTEL)                                        52.50%

 

Kuwait Investment Authority                                                       23.54%

 

Local businessmen and private investors                                    23.96%

 

 

AFFILIATED COMPANIES

 

Name                                                                                       Percentage Held

 

Wataniya International FZ LLC                                                    100%

United Arab Emirates

 

Wataniya Telecom Maldives                                                       100%

Maldives

 

Public Telecommunication Company Ltd                                    100%

Saudi Arabia

 

Carthage Consortium Ltd                                                           100%

Malta

 

Qtel Tunisia Holding Company Ltd                                             100%

Malta

 

Al Bahar United Company WLL                                                  99.0%

Kuwait

 

Tunisiana SA                                                                             75.0%

Tunisia

 

Wataniya Telecom Algerie SPA                                                  71.0%

Algeria

 

WARF Telecom Maldives                                                           65.0%

Maldives

 

Wataniya Palestine Mobile Telecom Ltd                                      44.5%

Palestine

 

 

OPERATIONS

 

Activities                      : Engaged in the supply and provision of mobile telephone and paging systems, wireless      voice and data network services and related services in Kuwait.

 

Subject has 2 million subscribers.

 

Import Countries          : Europe and the United States of America.

 

Operating Trend           : Steady

 

Subject has a workforce of approximately 1,100 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Kuwaiti Dinars (KD 000’s)

 

Balance Sheet                                                                          31/12/12            31/12/11

 

Assets

Non-current assets

Property and equipment                                                            524,513             484,593

Intangible assets and goodwill                                                   629,435             647,577

Available for sale financial assets                                              9,223                10,994

Deferred tax assets relating to subsidiaries                                2,394                11,255

Other non-current assets                                                            738                   3,706

1,166,303          1,158,125

Current assets

Inventories                                                                                14,459              14,047

Trade and other receivables                                                       145,454             132,406

Bank balances and cash                                                            151,761             118,355

311,674             264,808

Total assets                                                                              1,477,977          1,422,933

EQUITY AND LIABILITIES

EQUITY

Share capital                                                                             50,403              50,403

Treasury shares                                                                         (3,598)              (3,598)

Reserves                                                                                  155,456             166,473

Retained earnings                                                                      617,605             592,285

Equity attributable to shareholders of the Company                    819,866             805,563

Non-controlling interests                                                            139,296             110,007

Total equity                                                                               959,162             915,570

LIABILITIES

Non-current liabilities

Long term debt                                                                         58,989              97,881

Provision for staff indemnity                                                      5,204                3,792

Other non-current liabilities                                                         20,881              21,066

85,074              122,739

Current liabilities

Trade and other payables                                                          350,407             325,613

Deferred income                                                                       29,713              32,053

Income tax payable                                                                   5,327                4,946

Long term debt                                                                         48,294              22,012

433,741             384,624

Total liabilities                                                                           518,815             507,363

Total equity and liabilities                                                           1,477,977          1,422,933

 

Income Statement

 

Revenue                                                                                   742,521             726,605

Cost of revenue                                                                        (269,518)           (249,457)

473,003             477,148

Network construction revenue                                                     137                   2,064

Network construction costs                                                        (137)                 (2,064)

Gross profit                                                                              473,003             477,148

Administrative expenses                                                            (132,519)           (121,000)

Selling and distribution costs                                                     (55,421)            (57,914)

Finance costs - net                                                                    (4,769)              (8,067)

Depreciation and amortisation                                                    (129,441)           (123,834)

Other income / (expenses)                                                         205                   (28,646)

Impairment loss on available for sale financial

assets and intangible assets                                                      (18,284)            (1,225)

Gain on previously held interest in a joint venture                        -                       277,835

Profit before Directors’ remuneration, contribution to Kuwait

Foundation for the Advancement of Sciences (“KFAS”), National

Labour Support Tax (“NLST”), Zakat and taxation                        132,774             414,297

Directors’ remuneration                                                              (521)                 (581)

Provision for contribution to KFAS, NLST and Zakat                   (3,329)              (3,095)

Profit before taxation                                                                128,924             410,621

Taxation relating to subsidiaries                                                 (39,106)            (40,818)

Profit for the year                                                                      89,818              369,803

 

Local sources consider subject’s financial condition to be Good.

 

 

BANKERS

 

·         National Bank of Kuwait SAK

Ali Awadi Tower

Ahmed Al Jaber Street

PO Box: 95

Safat 13001

 

Tel: (965) 23981188 / 23981189

Fax: (965) 23985643

 

·         Al Ahli Bank of Kuwait KSC

Mubarak Al Kabir Street

PO Box: 1387

Safat 13033

Tel: (965) 22411101 / 22411102

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.73

UK Pound

1

Rs.100.92

Euro

1

Rs.84.06

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.