UPDATE 2-Qatar Telecom Q4 profit falls, plans rights issue

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DOHA, Feb 23 (Reuters) - Qatar Telecommunications Co QTEL.QA (Qtel) said on Saturday its fourth quarter net profit fell 9.6 percent due to a one-off amortisation impact associated with its March purchase of Kuwait's Wataniya (NMTC.KW: Quote, Profile, Research, Stock Buzz).

Net income in the three months to Dec. 31 fell to 366 million riyals ($100.6 million) from 405 million riyals in the year-earlier period, the state-controlled telecom operator said.

Four analysts surveyed by Reuters in December estimated net profits of between 310 million riyals and 630.5 million riyals, with the average at 432.27 million riyals.

Qtel said that if the amortisation impact was evenly distributed over one year, rather than all factored into the fourth quarter, profit would have risen 18.3 percent to 479 million riyals.

The firm also plans to sell stock to existing shareholders to raise about 5.86 billion riyals, to pay back debt and finance growth including possible acquisitions, said a company official, who asked to remain anonymous in line with company policy.

"There was a lot of growth in Qatar," he said.

The number of mobile phone users in Qatar rose 31 percent to 1.5 million and average revenue per user was higher as the economy grew and the population expanded, the company official said. He declined to give an outlook for 2008.

Qatar is the world's largest exporter of liquefied natural gas and an oil producer, benefiting from oil prices that have risen five-fold in the last six years.