Viva Kuwait Q4 Profit Up 17% As Revenue Rises Faster Than Costs

Viva Kuwait, which listed on Kuwait’s bourse last December, reported a 17 per cent rise in fourth-quarter profit on Wednesday as revenue increased faster than operating costs.

Viva, an affiliate of Saudi Telecom Co (STC), made a profit of KD11.08 million ($36.85 million) in the three months to Dec. 31, according Reuters calculations based on company statements.

That compares with a profit of KD9.49 million in the prior-year period.

Viva’s aggressive pricing enabled it to rapidly build up market share since launching in December 2008 and it is now Kuwait’s No.2 operator by subscribers, according to market leader Zain.

Ooredoo Kuwait, majority-owned by Qatar’s Ooredoo, has slipped to third, Zain’s financials show.

Viva’s fourth-quarter revenue was KD64.87 million. This compares with revenue of KD52.99 million in the prior-year period, according to Reuters data.

The company’s 2014 net profit was KD40.36 million, up from KD24.25 million in 2013, it said in a statement.

Full year revenue rose 31 per cent to KD238.97 million in 2014, while operating costs increased eight per cent to KD126.26 million.