Ooredoo posts revenue of QR 11 bn for H1 2022 as net profit turns positive

July 28, 2022

Tribune News NetworkDohaOoredoo Group has registered a net profit of QR1.3 billion on revenues of QR11 billion for the first half of 2022. While the net profit jumped 43 percent and turned positive, revenues rose 4 percent from the same period last year (normalised proforma numbers excluding IO and major non-recurring items).Group EBITDA for H1-2022 stood at QR4.5 billion, an increase of 2 percent from H1-2021. EBITDA has been normalised for two Indonesian non-recurring items — the data centre deal in 2022 and the tower sale and lease back in 2021, Ooredoo said. CAPEX for H1-2022 stood at QR965 million and free cash flow increased 10 percent to reach QR3.6 billion. The consolidated customer base stood at 55 million, driven by growth most markets offset by a decline inMyanmar.Commenting on the results, Ooredoo Chairman Sheikh Faisal bin Thani Al Thani said, “Ooredoo Group had a good start to the year. Taken the deconsolidation of our Indonesian operation into account we delivered growth in revenues and a net profit of QR1.3 billion up 43% over the first half of 2021. Our strategy to provide robust connectivity and superior customer experiences is clearly paying off. “As we enter the second half of the year, we are more determined and ambitious to leverage the growing opportunities in the market to build a world-class data experience for our customers. Led by our digital transformation strategy, we are well positioned to see strong returns as we continue to be agile and adapt to the fast-changing nature of our markets.”Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo said, “Ooredoo Group delivered strong results for the first half of 2022. In local currency terms all our operations have grown their Revenues. Normalized Proforma revenue increased by 4% yoy supported by a stable EBITDA margin of 41%. The success of our transformation strategy is evident and proven through our improved free cash flow of QAR 3.6 billion, which increased by 10%. “In our home market of Qatar, we reported revenue of QAR 3.8 billion, an increase of 3%, and a customer base increase of 5% to 3.2 million.” Ooredoo Kuwait revenue was up 13% to reach QR1.4 billion and it became the first telco in Kuwait to obtain a Cloud Service Provider license from the Communication and IT Regulatory Authority.Ooredoo Oman’s customer base increased to 2.9 million while revenue was up by 2% and EBITDA by 5% despite a new entrant in the Omani market. Ooredoo Algeria and Ooredoo Tunisia both reported revenue growth in local currency terms of 4% and 2% respectively. Asiacell continued their strong performance and revenue increased 3%. The integration between Indosat Ooredoo and Hutchison in Indonesia is progressing well, with the merged entity, Indosat Ooredoo Hutchison, on track to hit its targets outlined at the start of 2022. Ooredoo Qatar Ooredoo Qatar reported revenue of QR3.8 billion (H1 2021: QR3.7 billion), an increase of 3% driven by growth in postpaid, Ooredoo tv, Ooredoo Fintech and business-to-business services. EBITDA stood at QR1.9 billion (H1 2021: QR 2 billion). Customer numbers increased to 3.2 million (H1 2021: 3 million), a 5% increase, in line with population growth in Qatar.The OTV customer base grew by 10% compared to H1 2021, driven by the popularity of Ooredoo tv’s triple play service. Service revenue grew by 5%.As part of its ongoing investment in innovation, Ooredoo Qatar signed a Memorandum of Understanding with Siemens and Microsoft to develop digital, Internet of Things (IoT) and software analytics solutions to serve smart infrastructure applications in different market segments, with a particular focus on urban environments. Ooredoo OmanDespite increased competition in the market, Ooredoo Oman delivered good results for the first half of the year. The company reported revenues of QR1.2 billion (+2%) for the period, primarily driven by higher wholesale revenue and device sales. EBITDA for the period increased 5% to QR650 million, supported by a healthy EBITDA margin of 53%. Testament to its continuous efforts to introduce innovative products, Ooredoo Oman received the bronze award at the Annual Middle East and North Africa (MENA) Stevie Awards for ‘Excellence in Innovation in Technology Industries’. The Company’s customer base stands at 2.9 million. Ooredoo Kuwait Kuwait lifted all COVID-19 restrictions in May which resulted in improved economic conditions. Ooredoo Kuwait reported 13% increase in revenue to QR1.4 billion, an increase in EBITDA by 17%, supported by an improved EBITDA margin of 30%, up from 29% compared to the same period last year.In line with Ooredoo’s strategy to provide uninterrupted digital solutions to its customers, Ooredoo Kuwait reiterated its commitment to being one of the leading companies in information technology solutions through becoming the first telco in Kuwait to obtain a Cloud Service Provider license from the Communication and IT Regulatory Authority (CITRA).Asiacell – Iraq Asiacell reported revenue of QR1.7 billion, an increase of 3%, driven by the Company’s strategy to mitigate lower voice revenues due to the ongoing political instability in Iraq. Higher energy and increased leased line cost negatively impacted Asiacell’s EBITDA by 3% to reach QR755 million. Asiacell’s 4G+ technology, which has been launched in all major cities across Iraq, has resulted in enhanced speed and better customer experience. The company’s customer base stands at 16.3 million, an increase of 13%.Ooredoo Algeria Ooredoo Algeria reported revenue of QR1.1 billion in H1 2022, a decrease of 3% compared to the same period last year, and a flat EBITDA of QR397 million. In local currency terms revenue increased by 4%.The company continued to focus on efficiency and cost optimisation which supported a healthy EBITDA margin of 37%. Ooredoo Algeria’s customer base increased by 2% to 12.9 million.Ooredoo Algeria continues to reinforce its commitment to offer world-class service to its customers which was recognised by the International Business Awards where Ooredoo Algeria received the ‘Innovation in Consumer Products & Services’ Award for its YOOZ offering. The company was also awarded the ‘Best Exemplary Employer’ award for its human resources strategy during the Covid 19 pandemic.Ooredoo Tunisia Ooredoo Tunisia reported revenue of QR741 million, a decrease of 6% for the half year ended 30 June 2022. In local currency terms Revenue increase 2%, despite a decline in the Tunisian economy due to the ongoing war between Russia and Ukraine, which resulted in a hike in fuel and food prices, as well as a decline in the tourism sector. The company reported an EBITDA of QR324 million for the period. In line with its commitment to its customers, Ooredoo Tunisia launched ‘Ooredoo EZ’, the first e-gaming platform in Tunisia, and the Company’s customer base stands at 6.9 million. Indosat Ooredoo HutchisonThe merger between Indosat Ooredoo and 3 Indonesia closed on January 4, resulting in the formation of Indosat Ooredoo Hutchison (IOH) - now considered a joint venture, as opposed to a subsidiary. With this, Ooredoo Group only recognises 33% of IOH’s profits as a contribution towards the Group’s net income, and no longer consolidates the Company’s revenue or EBITDA contribution. IOH reports their Q1 results on 29 July 2022. Ooredoo Myanmar Despite the shutdown of internet services in parts of Sagaing region and the tax increase on data services to 15%, Ooredoo Myanmar reported revenues of QAR 545 million, an increase of 12% and a 101% increase in EBITDA supported by strong ARPU growth. Customer number decreased to 8.3 million (down 40%) due to the introduction of Sim card taxes.Ooredoo Myanmar has invested heavily in fostering a positive working environment which was recognised at the Asia-Pacific Stevie Awards where Ooredoo Myanmar was awarded the “Innovative Achievement in Human Resources” and the “Most Valuable Corporate Response (COVID 19 Response)” awards.

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