Earnings release
Page 1
. VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2025
Page 2
VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2025 CONTENTS Pages Independent auditors’ review report -- Interim Condensed Consolidated Financial Statements: Interim condensed consolidated statement of income 1 Interim condensed consolidated statement of comprehensive income 2 Interim condensed consolidated statement of financial position 3 Interim condensed consolidated statement of changes in equity 4 Interim condensed consolidated statement of cash flows 5 Notes to the interim condensed consolidated financial statements 6 - 20
Page 3
Independent auditors’ report on review of interim condensed consolidated financial statements To the Shareholders of Vodafone Qatar P.Q.S.C. Introduction We have reviewed the accompanying 30 June 2025 interim condensed consolidated financial statements of Vodafone Qatar P.Q.S.C. (the “Company”) and its subsidiaries (together the “Group”), which comprises: • the interim condensed consolidated statement of income for the six-month period ended 30 June 2025; • the interim condensed consolidated statement of comprehensive income for the six-month period ended 30 June 2025; • the interim condensed consolidated statement of financial position as at 30 June 2025; • the interim condensed consolidated statement of changes in equity for the six-month period ended 30 June 2025; • the interim condensed consolidated statement of cash flows for the six-month period ended 30 June 2025; and • notes to the interim condensed consolidated financial statements. The Board of Directors of the Company is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with IAS 34, ‘Interim Financial Reporting’. Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review. Scope of Review We conducted our review in accordance with the International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 June 2025 interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’. 30 July 2025 Gopal Balasubramaniam Doha KPMG State of Qatar Qatar Auditors’ Registry Number 251 Licensed by QFMA: External Auditors’ License No. 120153 KPMG, Qatar Branch is registered with the Ministry of Commerce and Industry, State of Qatar, and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The KPMG name and logo are registered trademarks of KPMG International. KPMG Zone 25 C Ring Road Street 230, Building 246 P.O Box 4473, Doha State of Qatar Telephone: +974 4457 6444 Fax: +974 4436 7411 Website: kpmg.com/qa
Page 4
VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME For the six months period ended 30 June 2025 1 Notes Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Revenues 4 1,751,895 1,585,133 Interconnection and other direct expenses (625,469) (517,096) Network and other operational expenses (226,883) (238,639) Employees’ salaries and benefits (147,735) (140,372) Depreciation of property, plant and equipment (197,392) (164,313) Amortisation of intangible assets (96,655) (98,430) Depreciation of right-of-use assets (55,359) (57,224) Expected credit losses (19,832) (17,225) Finance costs (13,950) (18,626) Other financing costs 5 (11,450) (14,511) Other income 5,383 4,395 Profit before tax related fees 362,553 323,092 Tax related fees 6 (33,925) (29,925) Profit for the period 328,628 293,167 Basic and diluted earnings per share (in QR per share) 7 0.078 0.069 This statement has been prepared by the Group and stamped by the auditors for identification purposes only. The accompanying notes 1 to 26 form an integral part of these interim condensed consolidated financial statements.
Page 5
VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months period ended 30 June 2025 2 Notes Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Profit for the period 328,628 293,167 Other comprehensive income Items that are or may be reclassified subsequently to the interim condensed consolidated statement of income: Cash flow hedges- effective portion of changes in fair value 16 9,710 (2,188) Total comprehensive income for the period 338,338 290,979 This statement has been prepared by the Group and stamped by the auditors for identification purposes only. The accompanying notes 1 to 26 form an integral part of these interim condensed consolidated financial statements.
Page 7
VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months period ended 30 June 2025 4 Share capital Legal reserve Hedging Reserve Retained earnings Total equity Notes Distributable profits Accumulated losses Total QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 QR’000 Balance as at 1 January 2025 (audited) 4,227,000 192,100 (5,308) 1,235,052 (596,980) 638,072 5,051,864 Profit for the period - - - - 328,628 328,628 328,628 Comprehensive income for the period - - 9,710 - - - 9,710 Total comprehensive income for the period - - 9,710 - 328,628 328,628 338,338 Transfer to distributable profits 15 - - - 371,136 (371,136) - - Transfer to legal reserve 15 - 18,557 - (18,557) - (18,557) - Dividend for the year ended 31 December 2024 22 - - - (507,240) - (507,240) (507,240) Transfer to social and sports fund - - - (8,216) - (8,216) (8,216) Balance as at 30 June 2025 (reviewed) 4,227,000 210,657 4,402 1,072,175 (639,488) 432,687 4,874,746 Balance as at 1 January 2024 (audited) 4,227,000 157,787 - 1,063,093 (511,384) 551,709 4,936,496 Profit for the period - - - - 293,167 293,167 293,167 Comprehensive income for the period - - (2,188) - - - (2,188) Total comprehensive income for the period - - (2,188) - 293,167 293,167 290,979 Transfer to distributable profits 15 - - - 336,687 (336,687) - - Transfer to legal reserve 15 - 16,834 - (16,834) - (16,834) - Dividend for the year ended 31 December 2023 - - - (464,970) - (464,970) (464,970) Transfer to social and sports fund - - - (7,329) - (7,329) (7,329) Balance as at 30 June 2024 (reviewed) 4,227,000 174,621 (2,188) 910,647 (554,904) 355,743 4,755,176 This statement has been prepared by the Group and stamped by the auditors for identification purposes only. The accompanying notes 1 to 26 form an integral part of these interim condensed consolidated financial statements.
Page 8
VODAFONE QATAR P.Q.S.C. INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months period ended 30 June 2025 5 Notes Six months ended 30 June 2025 2024* (Reviewed) (Reviewed) QR’000 QR’000 Operating activities Profit before tax related fees 362,553 323,092 Adjustments for: Depreciation of property, plant and equipment 197,392 164,313 Amortisation of intangible assets 96,655 98,430 Depreciation of right-of-use assets 55,359 57,224 Provision for employees’ end of service 5,699 5,586 Expected credit losses 19,832 17,225 Finance costs 13,950 18,626 Other financing costs 11,450 14,511 Other income (5,383) (4,395) Changes in operating assets and liabilities (Increase) / decrease in trade and other receivables (82,310) 28,433 Decrease / (increase) in inventories 9,166 (9,791) Increase in contract costs (9,183) (12,779) Increase in provisions 285 618 Decrease in trade and other payables (32,557) (165,558) Cash generated from operating activities 642,908 535,535 Tax related fees paid (61,843) (52,418) Finance costs paid (13,354) (16,820) Employees’ end of service paid (2,587) (1,919) Other income received 1,685 353 Net cash flows from operating activities 566,809 464,731 Investing activities Purchase of property, plant and equipment (123,647) (83,742) Purchase of intangible assets (26,475) (14,387) Deferred consideration paid for subsidiary acquisition - (1,000) Net cash used in investing activities (150,122) (99,129) Financing activities Proceeds from loans and borrowings 325,000 415,000 Repayment of loans and borrowings - (252,500) Payment of lease liabilities (53,099) (61,799) Dividend paid (508,110) (467,098) Movement in restricted dividend bank accounts 13.1 870 2,128 Net cash used in financing activities (235,339) (364,269) Net increase in cash and cash equivalents 181,348 1,333 Cash and cash equivalents at the beginning of the period 97,415 94,615 Cash and cash equivalents at the end of the period (restated)* 278,763 95,948 This statement has been prepared by the Group and stamped by the auditors for identification purposes only. The accompanying notes 1 to 26 form an integral part of these interim condensed consolidated financial statements.
Page 9
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 6 1 INCORPORATION AND PRINCIPAL ACTIVITIES Vodafone Qatar P.Q.S.C. (the “Company”) is registered as a Qatari Shareholding Company for a twenty - five-years period (which may be extended by a resolution passed at a General Assembly) under Qatar Commercial Companies Law. The Company was registered with the Commercial Register of the Ministry of Economy and Commerce on 23 June 2008 under Commercial Registration No: 39656. The shares of the Company are listed on the Qatar Stock Exchange. The Company is licensed by the Communications Regulatory Authority (CRA) to provide both fixed and mobile telecommunications services in the State of Qatar. The conduct and activities of the Company are primarily regulated by the CRA pursuant to Law No. 34 of 2006 (Telecommunications Law), the terms of its mobile and fixed licences and applicable regulations. The Company is engaged in providing cellular mobile telecommunication services, fixed line and broadband services and selling related equipment and accessories. Vodafone and Qatar Foundation LLC (VFQF) owns 45% shareholding ( 31 December 2024: 45% shareholding) of the Company. By virtue of agreements entered into by the shareholders of VFQF, the Company is not controlled or consolidated by VFQF or any other parties. Hence, there is no parent or ultimate parent for the Company. The Company’s head office is located in Doha, State of Qatar and its registered address is P.O. Box 27727, Msheireb Downtown, Doha, State of Qatar. The Company has a cooperation agreement with Vodafone Sales & Services Limited, a company registered in United Kingdom. In accordance with the agreement, the Company has rights to receive the benefit of Vodafone Group’s brand, products, services, expertise and technical knowledge. These interim condensed consolidated financial statements as at and for the six-month period ended 30 June 2025 comprises the Company and its subsidiaries (together referred to as “the Group”) . As at the current and comparative reporting date (31 December 2024), the Company has the following subsidiaries: Subsidiary companies Location Nature of business Holding Infinity Solutions L.L.C Qatar Operational and administrative services 100% Infinity Payment Solutions W.L.L Qatar Fintech and digital innovation services 100% Allied Advertising Group W.L.L Qatar Advertising and sales promotion 100% Infinity Fintech Ventures L.L.C Qatar Investment company 100% Infinity Global Services L.L.C Qatar Investment company 100% 2 BASIS OF PREPARATION Statement of compliance These interim condensed consolidated financial statements for the six months period ended 30 June 2025 have been prepared in accordance with IAS 34 “Interim Financial Reporting ” and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2024 (“last annual consolidated financial statements”). They do not include all disclosures that would otherwise be required in a full set of consolidated financial statements prepared in accordance with IFRS Accounting Standards. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group’s financial position and performance since the last annual consolidated financial statements. All amounts in the interim condensed consolidated financial statements are stated in thousands of Qatari Riyals (QR’000) unless indicated otherwise. In addition, results for the six -month period ended 30 June 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025.
Page 10
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 7 2 BASIS OF PREPARATION (CONTINUED) Use of judgements and estimates The preparation of these interim condensed consolidated financial statements requires management to make judgements and estimates about the future, including climate-related risk and opportunities, that affect the application of Group’s accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The judgments and estimates with under lying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements. Management has carried out sensitivity analysis over these significant judgments to assess if any adjustment is needed to the amounts recognised in these interim condensed consolidated financial statements. During the period, the Group reassessed the useful lives of some of its property, plant and equipment and intangible assets due to regulatory changes, technological updates , and regular maintenance and reassessment of assets lives. This has resulted in reduction of useful life for some of the assets and consequently higher depreciation and amortisation charge of QR 24.1 million for the period (30 June 2024: nil). Financial risk management The Group’s financial risk management objectives and policies, judgments and estimates are consistent with those disclosed in the consolidated financial statements as at and for year ended 31 December 2024. 3 CHANGE IN ACCOUNTING POLICY The accounting policies applied in these interim condensed consolidated financial statements are the same as those applied in the Group’s consolidated financial statements as at and for the year ended 31 December 2024. 4 REVENUES The Group’s operations and main revenue streams are those described in the last annual consolidated financial statements. Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Revenue from post-paid mobile services 663,323 654,130 Revenue from pre-paid mobile services 286,049 265,541 Revenue from broadband, roaming, wholesale and managed services 513,203 494,146 Sale of equipment, related services, and accessories 283,696 167,810 Other revenues 5,624 3,506 1,751,895 1,585,133
Page 11
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 8 4 REVENUES (CONTINUED) Disaggregation of revenue The Group derives its revenue from contracts with customers for the transfer of goods and services over time and at a point in time in the following major product lines: Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Disaggregation of revenue – over time Post-paid mobile services 663,323 654,130 Pre-paid mobile services 286,049 265,541 Revenue from broadband, roaming, wholesale and managed services 513,203 494,146 Sale of equipment, related services, and accessories 89,455 12,690 Other revenue 1,561 1,395 1,553,591 1,427,902 Disaggregation of revenue – at a point in time Sale of equipment, related services, and accessories 194,241 155,120 Other revenues 4,063 2,111 198,304 157,231 Total revenue 1,751,895 1,585,133 5 OTHER FINANCING COSTS Other financing costs include unwinding of discount on lease liabilities, assets retirement obligation and deferred liability amounting to QR 8.4 million (30 June 202 4: QR 10 million), QR 1.3 million (30 June 2024: QR 1. 7 million), QR 1 million (30 June 202 4: QR 2.8 million), respectively and certain other ancillary costs. 6 TAX RELATED FEES Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Industry fee (i) 33,754 29,759 Current income tax 171 166 33,925 29,925 (i) In accordance with its operating licenses for Public Telecommunications Networks and Services granted in Qatar by Communications Regulatory Authority (CRA), the Company is liable to pay to the CRA an annual industry fee which is calculated at 12.5% of adjusted net profit on licensed activities .
Page 12
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 9 7 BASIC AND DILUTED EARNINGS PER SHARE Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) Profit for the period (QR ’000) 328,628 293,167 Weighted average number of shares (in thousands) 4,227,000 4,227,000 Basic and diluted earnings per share (QR) 0.078 0.069 8 PROPERTY, PLANT AND EQUIPMENT 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Net book value at the beginning of the period / year 1,958,183 1,934,465 Additions during the period / year 123,647 384,964 Net book value of assets disposed during the period / year - (4,487) Depreciation for the period / year (197,392) (356,759) Net book value at the end of the period / year 1,884,438 1,958,183 9 INTANGIBLE ASSETS 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Net book value at the beginning of the period / year 3,895,013 4,037,387 Additions during the period / year 26,475 56,056 Amortisation for the period / year (96,655) (198,430) Net book value at the end of the period / year 3,824,833 3,895,013 10 RIGHT- OF - USE ASSETS AND LEASE LIABILITIES The Group leases various exchange and network assets, buildings, offices and ducts. Rental contracts are typically for fixed periods of 5-20 years (31 December 2024: 5 – 20 years). Below is the movement in right-of-use assets: 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Net book value at the beginning of the period / year 337,229 428,599 Additions to right-of-use assets during the period / year 63,906 37,827 Termination of leases during the period / year (5,761) (16,111) Modification during the period / year - (2,666) Depreciation charge for the period / year (55,359) (110,420) Net book value at the end of the period / year 340,015 337,229
Page 13
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 10 10 RIGHT OF USE ASSETS AND LEASE LIABILITIES (CONTINUED) Below is the movement in lease liabilities: 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at the beginning of the period / year 376,674 471,395 New leases added during the period / year 63,906 37,827 Interest expense on lease liabilities for the period / year 8,417 18,353 Modification - (3,039) Offsetting of balances - (12,760) Termination of leases during the period / year (5,546) (17,635) Payments during the period / year (53,099) (117,467) Balance at the end of the period / year 390,352 376,674 Presented in the interim condensed consolidated statement of financial position as: Non - current lease liabilities 225,164 226,948 Current lease liabilities 165,188 149,726 390,352 376,674 11 TRADE AND OTHER RECEIVABLES 30 June 2024 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Non-current assets: Trade receivables 124,258 162,922 Advances for indefeasible right - of - use 54,203 54,203 Prepayments 18,981 10,038 Deposits 7,813 8,468 205,255 235,631 Current assets: Trade receivables - net (i) (ii) 439,855 402,200 Contract assets 79,925 42,343 Prepayments 36,068 28,743 Due from related parties (note 21) 24,643 16,766 Forward contract asset 4,402 - Other receivables – net (ii) 8,365 6,439 593,258 496,491 (i) Trade receivables include financing income receivable amounting to QR 3.4 million ( 31 December 2024: QR 10.6 million). (ii) Trade receivables and other receivables are net of expected credit losses (ECL) amounting to QR 178.2 million (31 December 2024: QR 159.8 million). The following table shows the movement in expected credit loss that was recognised against trade and other receivables:
Page 14
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 11 11 TRADE AND OTHER RECEIVABLES (CONTINUED) 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year 159,838 126,329 Expected credit losses recognised during the period/year 19,832 31,349 Collections from previously written off balances during the period/year 578 2,160 Write off during the period/year (2,026) - Balance at end of the period/year 178,222 159,838 12 INVENTORIES 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Handsets 44,887 52,024 Accessories and other equipment 5,554 8,353 50,441 60,377 Allowance for obsolescence (Note 12.1) (9,393) (10,163) 41,048 50,214 12.1 Inventories are reported net of allowance for obsolescence, an analysis which is as follows: 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year 10,163 7,182 (Reversal) / charge recognised during the period / year (770) 3,392 Write offs during the period / year - (411) Balance at end of the period / year 9,393 10,163 13 CASH AND CASH EQUIVALENTS 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Cash and bank balances 373,445 145,010 Less: Balance with restricted bank accounts (note 13.1) (94,682) (47,595) Cash and cash equivalents 278,763 97,415 13.1 Restricted bank accounts comprise of funds maintained for uncollected shareholder dividends of QR 20.2 million, (31 December 2024: QR 21 million), and escrow bank accounts of QR 74.5 million (31 December 2024: QR 26.5 million). These accounts are not available for the use of the Group.
Page 15
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 12 13 CASH AND CASH EQUIVALENTS (CONTINUED) Restatement of cash and cash equivalents The Group maintains escrow bank accounts for its customers’ electronic wallets, under its subsidiary Infinity Payment Solutions LLC. During the year 2024, the Group changed the accounting policy of defining the cash and cash equivalent. Under the revised policy in line with the instructions of Qatar Central Bank, escrow bank accounts are excluded from the Group’s bank balances when determining the cash and cash equivalents. The Group have accounted for this change as a change in accounting policy in accordance with IAS 8 “Accounting policies, changes in accounting estimates and errors” and accordingly, the comparative figures in the interim condensed consolidated statement of cash flows were restated to reflect this change as follows: Interim condensed consolidated statement of cash flows for the period ended 30 June 2024: Previous Presentation Restatement Current Presentation QR’000 QR’000 QR’000 Net cash flows from operating activities 479,641 (14,910) 464,731 Cash and cash equivalents at the beginning of the period 104,534 (9,919) 94,615 Cash and cash equivalents at the end of the period 120,777 (24,829) 95,948 14 SHARE CAPITAL 30 June 2025 31 December 2024 Number QR’000 Number QR’000 (Reviewed) (Reviewed) (Audited) (Audited) Ordinary shares authorised, allotted, issued and fully paid: Ordinary shares of QR 1 each 4,227,000,000 4,227,000 4,227,000,000 4,227,000 All shares have equal rights. 15 LEGAL RESERVE AND DISTRIBUTABLE PROFITS Legal reserve: As per the Articles of Association of the Company, 5% of annual distributable profits should be transferred to a separate legal reserve. The General Assembly may discontinue this deduction if the legal reserve reaches 10% of the paid- up capital. The legal reserve may not be wholly or partially distributed to the shareholders or capitalized, except upon the recommendation of the board of directors and approval of the annual general assembly of shareholders. Distributable profits: As per the Articles of Association of the Company, distributable profits are defined as the reported net profit for the financial period plus amortisation of license fees for the period. Undistributed profits are carried forward and are available for distribution in future periods. The movement in the balance of distributable profits is as follows:
Page 16
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 13 15 LEGAL RESERVE AND DISTRIBUTABLE PROFITS (CONTINUED) Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) (Reviewed) (Reviewed) QR’000 QR’000 QR’000 QR’000 Balance at beginning of the period 1,235,052 1,063,093 Net profit of the Company 329,090 294,641 License fee amortisation 42,046 42,046 Transfer to distributable profits 371,136 336,687 Transfer to legal reserve (18,557) (16,834) Dividends declared for the year 2024/2023 (507,240) (464,970) Contribution to Social and Sports fund (8,216) (7,329) Balance at period end 1,072,175 910,647 16 HEDGING RESERVE The Group designated forward foreign currency contracts as cash flow hedges to manage the risk associated with highly probable future payments in the EURO currency. The forecasted purchases at the time of designation are expected to occur between July 2024 and June 2028. For the period ended 30 June 2025, the effective portion of gain on cash flow hedge is QR 9.7 million (30 June 2024: the effective portion of loss on cash flow hedge is QR 2.2 million) and is included in the interim condensed consolidated statement of comprehensive income. 17 LOANS AND BORROWINGS Type Currency Profit rate Maturity 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Secured (i) QR QMRL - Margin 31 August 2026 577,869 352,060 Secured (ii) QR QMRL - Margin 3 years from execution date 125,125 25,338 702,994 377,398 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year 377,398 429,868 Proceeds during the period / year 325,000 440,000 Repayments during the period / year - (492,500) Finance cost incurred during the period / year 13,950 33,516 Finance cost paid during the period / year (13,354) (33,486) 702,994 377,398 Presented in the interim condensed consolidated statement of financial position as: Non-current liabilities 700,000 375,000 Current liabilities 2,994 2,398 702,994 377,398
Page 17
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 14 17 LOANS AND BORROWINGS (CONTINUED) (i) The Group has a rollover Islamic financing facility of QR 1,211 million for general corporate purposes and capital expenditure (the “Rollover Facility”), The facility is secured over assets agreement and receivable asset agreement with carrying amount of QR 50 million. The rollover facility mandates compliance with a covenant requiring the net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) ratio less than 2.5:1. (ii) The Group has a Murabaha working capital (revolving) facility agreement with a local bank of QR 500 million (the “Murabaha Facility”), for working capital requirements. The Murabaha’s Facility principal is to be paid in bullet at final maturity and is secured over assignment of proceeds. The Murabaha Facility mandates compliance with a covenant requiring the net debt to EBITDA ratio less than 2.5:1. The Group has complied with covenant requirement of the above financing facilities during the six months period ended 30 June 2025. 18 PROVISIONS 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Employees’ end of service benefits (note18.1) 70,896 67,784 Asset retirement obligations (note 18.2) 43,748 42,102 114,644 109,886 18.1 Employees’ end of service benefits 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year 67,784 62,099 Charge for the period / year 5,699 9,490 Payments during the period / year (2,587) (3,805) Balance at end of the period/year 70,896 67,784 18.2 Asset retirement obligations 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year 42,102 48,334 Unwinding of discount during the period / year 1,361 3,297 Net addition to the provision during the period / year 285 1,429 Derecognition of asset retirement obligation - (10,958) Balance at end of the period/year 43,748 42,102
Page 18
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 15 19 TRADE AND OTHER PAYABLES 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Trade payables 436,259 520,214 Accruals 531,721 463,003 Contract liabilities 97,132 82,377 Regulatory and industry fee 71,129 109,631 Electronic wallet balances 61,161 18,896 Dividend payable 20,188 21,058 Payable to the Social and Sports Fund 8,216 15,017 Due to related parties (note 21) 280 29 Forward contract liability - 5,308 Other payables 5,728 9,491 1,231,814 1,245,024 20 FAIR VALUES OF FINANCIAL INSTRUMENTS The following table shows the fair value of financial assets and financial liabilities. The fair values of the financial assets and financial liabilities that are carried at amortised cost are not materially different from their carrying values in the interim condensed consolidated statement of financial position, as these assets and liabilities are either of short-term maturities or are re-priced frequently based on market movement in interest rates. Carrying value 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Financial assets at amortised cost: Trade receivables -net 564,113 565,122 Cash and bank balances 373,445 145,010 Due from related parties 24,643 16,766 Deposits 7,813 8,468 Other receivables - net 8,365 6,439 978,379 741,805 Financial liabilities at amortised cost: Trade payables 436,259 520,214 Loans and borrowings 702,994 377,398 Lease Liabilities 390,352 376,674 Dividend payable 20,188 21,058 Electronic wallet balances 61,161 18,896 Payable to the Social and Sports Fund 8,216 15,017 Due to related parties 280 29 Other payables 5,728 9,491 1,625,178 1,338,777 Financial assets and liabilities at fair value: Forward contract asset 4,402 - Forward contract liability - 5,308 4,402 5,308
Page 19
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 16 20 FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED) Fair value hierarchy The Group ho ld the following financial instruments measured at fair value. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that is not based on observable market data. Level 1 Level 2 Level 3 Total 30 June 2025 (reviewed) QR’000 QR’000 QR’000 QR’000 Financial assets measured at fair value Forward contract asset - 4,402 - 4,402 31 December 2024 (audited) QR’000 QR’000 QR’000 QR’000 Financial liabilities measured at fair value Forward contract liability - 5,308 - 5,308 The following table provides a movement of other comprehensive income items, resulting from cash flow hedge accounting. 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Balance at beginning of the period / year (5,308) - Changes in fair value due to foreign currency risk for the period / year (Effective portion of cash flow hedge) 9,710 (5,308) Balance as the end of the period / year 4,402 (5,308) 21 RELATED PARTY TRANSACTIONS Related parties represent the shareholders, directors and key management personnel of the Group and companies controlled, jointly controlled or significantly influenced by those parties. The transactions carried out with the related parties are presented below: Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Sales of goods and services: Related parties 11,715 10,246 Purchases of goods and services: Related parties 3,898 15,572
Page 20
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 17 21 RELATED PARTY TRANSACTIONS (CONTINUED The following are balances arising from transactions with related parties are as follows 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Due from related parties: Related parties 24,643 16,766 Due to related parties: Related parties 280 29 Compensation of key management personnel Key management personnel include the Board of Directors, Managing Director, Chief Executive Officer (CEO) and the executives who directly report to the CEO. Compensations of key management personnel are as follows: Six months ended 30 June 2025 2024 (Reviewed) (Reviewed) QR’000 QR’000 Salaries and short-term benefits 23,779 20,739 Employees' end of service benefits 480 457 24,259 21,196 22 DIVIDENDS On 27 January 2025, the Board of Directors proposed a cash dividend of 12% of the nominal share value amounting to QR 507 million (QR 0.12 per share with nominal value of QR 1 each). The proposed dividend was subsequently approved by the shareholders during the Annual General Assembly Meeting held on 24 February 2025. 23 COMMITMENTS AND CONTINGENT LIABILITIES Commitments 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Contracts placed for future capital expenditure not provided for in the interim condensed consolidated financial statements 286,610 93,197 Contingent liabilities 30 June 2025 31 December 2024 (Reviewed) (Audited) QR’000 QR’000 Performance bonds 45,243 44,682 Tender bonds 28,721 10,641 Credit and payment guarantee – third party indebtedness 49,565 49,316
Page 21
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 18 24 SEGMENT INFORMATION Operating segments are components that engage in business activities that may earn revenues or incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM), and for which discrete financial information is available. The CODM is the person or group of persons who allocates resources and assesses the performance of the components. For the Group, the functions of the CODM are performed by the Board of Directors of the Group. The Group only operates in the State of Qatar and is therefore viewed to operate in one geographical area. The operating segments that are regularly reported to the CODM are Consumer and Enterprise & others. This is the measure reported to the Group’s CODM for the purpose of resource allocation and assessment of segment performance. Six months ended 30 June 2025 2024 Consumer Enterprise & others Total Consumer Enterprise & others Total (Reviewed) (Reviewed) Segment revenue QR'000 QR'000 Timing of revenue recognition: Over time 934,207 619,384 1,553,591 886,594 541,308 1,427,902 Point in time 4,503 193,801 198,304 3,084 154,147 157,231 938,710 813,185 1,751,895 889,678 695,455 1,585,133 Unallocated costs Interconnection and other direct expenses (625,469) (517,096) Network and other operational expenses (226,883) (238,639) Employee salaries and benefits (147,735) (140,372) Depreciation and amortisation expenses (349,406) (319,967) Expected credit loss (19,832) (17,225) Finance costs (13,950) (18,626) Other financing costs (11,450) (14,511) Other income 5,383 4,395 Profit before tax related fees 362,553 323,092 Tax related fees (33,925) (29,925) Profit for the period 328,628 293,167 The Group’s assets and liabilities have not been identified to any of the reportable segments as the majority of the operating fixed assets are fully integrated between segments. The Group believes that it is not practical to provide segment disclosure relating to total costs, assets, and liabilities since a meaningful segregation of available data is not feasible.
Page 22
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 19 25 ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE A number of new accounting standards and amendments to accounting standards are effective for annual reporting periods beginning after 1 January 2025 and earlier application is permitted. However, the Group has not early adopted any of the forthcoming new or amended accounting standards in preparing these interim condensed consolidated financial statements. (i) New currently effective requirements The Group has applied the following new and revised IFRS Accounting Standards that have been issued and are effective for annual periods beginning on or after 1 January 2025: Effective date New standards or amendments 1 January 2025 Lack of Exchangeability – Amendments to IAS 21 The application of these amendments had no material impact on the Group’s interim condensed consolidated financial statements. (ii) New and revised standards and interpretations issued but not yet effective The following new and amendments standards are not expected to have a significant impact on Group’s interim condensed consolidated financial statements. Effective date New standards or amendments 1 January 2026 Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature-dependent Electricity – Amendments to IFRS 9 and IFRS 7 Annual Improvements to IFRS Accounting Standards – Volume 11 1 January 2027 IFRS 18 Presentation and Disclosure in Financial Statements IFRS 19 Subsidiaries without Public Accountability: Disclosures Available for optional adoption/ effective date deferred indefinitely Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28) 2 6 OFFSETTING Financial assets and financial liabilities are offset, and the net amount presented in the interim condensed consolidated statement of financial position when, and only when, the Group has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. As at the reporting date, the Group has presented financial assets net of financial liabilities, when they are subject to offsetting. G ross and n et amounts presented in the interim condensed consolidated statement of financial position are as follows: Gross amounts Offsetting amounts Net amounts QR’000 QR’000 QR’000 Current assets As at 30 June 2025 (reviewed) Trade and other receivables 670,602 (77,344) 593,258 As at 31 December 2024 (audited) Trade and other receivables 562,341 (65,850) 496,491
Page 23
VODAFONE QATAR P.Q.S.C. NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six months period ended 30 June 2025 20 26 OFFSETTING (CONTINUED) Gross amounts Offsetting amounts Net amounts QR’000 QR’000 QR’000 Current liabilities As at 30 June 2025 (reviewed) Trade and other payables 1,266,095 (34,281) 1,231,814 Lease liabilities 208,251 (43,063) 165,188 1,474,346 (77,344) 1,397,002 As at 31 December 2024 (audited) Trade and other payables 1,267,811 (22,787) 1,245,024 Lease liabilities 192,789 (43,063) 149,726 1,460,600 (65,850) 1,394,750