Vodafone Qatar (VFQS) Q2 2026 earnings summary

Executive summary

• Net profit rose 22% year-over-year to QR 401 million for H1 2026, driven by strong service revenue growth, disciplined cost management, and operational efficiencies.

• Service revenue grew 9.3% year-over-year to QR 1,594 million, with total revenue up 3.1% to QR 1,802 million, reflecting robust core business performance.

• Operational resilience and business continuity were maintained despite geopolitical and supply chain challenges.

• Strategic transformation initiatives advanced, with over 40% of a major technology program delivered and digitization efforts supporting growth.

• The Group acquired MaktApp QSTP-L.L.C., expanding digital platform capabilities.

Financial highlights

• EBITDA rose 10.6% year-over-year to QR 810 million, with a margin of 44.9%.

• Underlying free cash flow increased 14.7% year-over-year, and net debt declined by QR 139 million.

• OpEx intensity improved to 21.6%, down 0.5 percentage points from the prior year.

• Basic and diluted EPS increased to QR 0.095 from QR 0.078 year-over-year.

• Net profit margin improved to 22.3%, and return on equity rose to 14.9%.

Outlook and guidance

• Full-year guidance maintained: mid-single digit top-line growth, EBITDA margin above 43.5%, and net profit growth in the mid-teens.

• CapEx intensity expected at 14.5%-15.5% for FY 2026, with future years anticipated to drop below 13% as major transformation projects conclude.

• Management continues to monitor geopolitical risks but sees no significant current impact on operations.

• The Group has undrawn financing facilities of QR 971 million to support future growth.

• Expect normalization of visitor activity and prepaid segment recovery as geopolitical conditions stabilize.