Friday, October 15, 2010

Wateen Gets Rs. 2.1 Bln Funding from Dhabi Group

Wateen Gets Rs. 2.1 Bln Funding from Dhabi Group
Wateen Telecom today announced that it has received Rs. 2.1 billion as emergency fund injection from Dhabi Group.
Wateen didn’t say any word on the type of funding, however, it is assumed that its a soft loan – spanning over a longer duration of period.
This fund injection will not dilute Wateen’s shares as a result, said the statement.
The primary objective is to secure losses, pending liabilities along with stabilization of Wateen telecom in the market and the stocks.
Wateen says that the decision that came from board of directors will imply as an influx of US dollars into the country while for Wateen it shows shareholders’ confidence in the company and its management while supporting the business plan.
On other hands, Business Recorder reported today that Wateen posted Rs. 2 billion as after tax loss in the year ended June 30, 2010 (FY10) as compared to profit after tax of Rs 927.763 million in the corresponding period in FY09.
The board of directors of the company in its meeting held at Abu Dhabi, UAE declared Rs 4.43 per share loss in the period under review against earning per share of Rs 2.22 in the same period a year back.
According to the financial results sent to Karachi Stock Exchange (KSE), the company’s revenue declined to Rs 7.961 billion in FY10 against Rs 15.410 billion in FY09.
The cost of sales (excluding depreciation and amortisation) declined to Rs 5.917 billion against Rs 10.607 billion. Depreciation and amortization increased to Rs 1,648.499 million against Rs 946.810 million. The company posted Rs 3.091 billion as loss before taxation in FY10 against profit before taxation of Rs 1.446 billion in FY09.
It merits mentioning here that Wateen had raised Rs. 2 billion with its IPO earlier this year.

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