Ooredoo Group revenue up 4% to QR23bn in 2022

Doha: Ooredoo Q.P.S.C. (“Ooredoo”) - Ticker: ORDS which announced its financial results for the year ended 31 December 2022 yesterday showed the Proforma Revenue for the full year ended 31 December 2022 rising by 4 percent to QR22.7bn compared to QR21.9bn in 2021.

Due to the merger of Indosat Ooredoo (IO) and Hutchison in Indonesia as of January 4, 2022, the accounting treatment of Ooredoo’s previous largest international operation has been changed. Indosat Ooredoo Hutchison (“IOH”) Revenue, EBITDA, customers, and Capex are no longer consolidated, as the operation is now classified as a “joint venture company.” For “a like for like” comparison, we have added a proforma data excluding the Indonesian consolidated results in 2021 and normalising for major non-recurring items.

The Group normalised EBITDA for the period was QR9.1bn with a corresponding EBITDA margin of 40 percent. The 2 percent EBITDA drop was driven by higher cost of sales and OPEX in Iraq and higher staff cost at Group level mainly due the implementation of a new, future ready, unified operating platform “OneOoredoo” and the “braveheart” transformation project, partially offset by stronger EBITDA performances in other markets. The CAPEX for the period stood at QR 2.7bn. The company’s nNormalised Free Cash Flow increased 3 percent to reach QR 6.4bn driven by reduced CAPEX which was partially offset by reduced EBITDA.

The Normalised Net Profit for the period stood at QR 2.8 bn compared to QR2.2bn in 2021. NP has been normalised in the same manner as EBITDA plus impairments and FX impact. Net Profit in 2021 included two major one-off items (QR 2.3bnn Myanmar impairment loss and QR1.0bn gain from Indonesian tower sales) The Consolidated customer base stood at 56m, driven by growth in most markets offset by a decline in Myanmar. The Board recommends the distribution of a cash dividend of QAR 0.43 per share. This recommendation is based on healthy balance sheet, adequate liquidity, and overall solid operational performance.

Operational highlights:

• Ooredoo Qatar achieved record-breaking Revenue at the conclusion of the FIFA World Cup, a sporting mega-event, cementing its position as a world-leading telecommunications and ICT provider. Additionally, the company has named Sheikh Ali Bin Jabor Al Thani post period on 8 January 2023 as its new CEO.
• S&P upgraded Ooredoo to ‘A/A-1’ on improved Free Cash generation; Outlook Stable post period on February 9

• On December 7, Ooredoo Kuwait becomes the first Kuwaiti telecoms company to integrate Apple Pay within its application

• On December 4, Ooredoo Maldives received Gold 100 award, which is a prestigious award given to the leading one hundred business entities in the Maldives

• On November 24, Ooredoo Algeria partnered with the Algerian National Bank to enable account holders to pay for Ooredoo services via ATM cash machines and the Wimpay e-banking service, which supports QR code payments and is available via a dedicated app at no extra charge. In December, the company won Best African Operator award and Best African CSR Initiative at the Telecom Review Leaders’ Summit.

• Ooredoo Oman received the Best Middle Eastern Digital Customer Experience Award from Telecoms review, as well as achieving Bronze for “Excellence in Innovation in Technology Industries” at the Stevie Awards Middle East.

• Htar Thant Zin assumed her new role as Acting CEO of Ooredoo Myanmar, effective 1 November 2022 Commenting on the results, Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said: “Ooredoo Group ended the year 2022 with outstanding results, boasting a revenue of QAR 22.7 billion and a remarkable increase in normalised net profit. This success is a testament to our commitment to delivering robust connectivity, exceptional customer experiences, and maximizing shareholder value.

Furthermore, I am proud to announce that the company’s credit rating has been upgraded by S&P Global to A/A-1 with stable outlook. This reflects the company’s robust financial position. This upgrade is a testament to our commitment to delivering value to all our stakeholders and is a direct result of our improved free cash generation. Driven by our digital transformation strategy, we are effectively capitalizing on market opportunities and are confidently poised for further success. Our ability to remain agile and adapt to the rapidly evolving nature of the markets in which we operate positions us well for continued growth and strong returns.

Finally, I am pleased to announce that the Board will recommend the distribution of a cash dividend of QAR 0.43 per share at the annual general meeting, taking place on 7 March 2023.” Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director of Ooredoo said: “I am thrilled to report a 27 percent increase of our normalised Net Profit reaching QR2.8bn, our best result since 2013. Our Proforma revenues have experienced a remarkable growth of 4% to reach QR22.7bn. Our EBITDA margin remains strong at a robust 40 percent.