Sheikh Faisal bin Thani Al Thani (left), Chairman of Ooredoo and Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo
Doha: Ooredoo yesterday announced its financial results for the nine months ended September 30, 2022, with revenue of QR16.9bn, an increase of 4 percent compared to the same period last year.
Group EBITDA for the period stood at QR6.9bn, a decrease of 1 percent. EBITDA has been normalised for two Indonesian non-recurring items, including the data centre deal in 2022 and the tower sale and lease back in 2021.
Capex for the period stood at QR1.6bn, while free cash flow increased by 3 percent to reach QR5.3bn mainly driven by lower Capex.
Net profit grew by 33 percent to reach QR2.1bn for the nine months ended September 30, 2022. NP has been normalised in the same manner as EBITDA plus impairments and FX impact.
Consolidated customer base stood at 55 million, driven by growth in most markets offset by a decline in Myanmar.
Commenting on the results, Sheikh Faisal bin Thani Al Thani, Chairman of Ooredoo said: “Ooredoo Group further delivered strong results for the nine-month period ended September 30, 2022 with revenue of QR17bn and a return to net profit, testament to our vision to provide robust connectivity, superior customer experiences, and increased shareholder value”.
He added: “Led by our digital transformation strategy, we continue to leverage opportunities in the market, and I can confidently say that we are well positioned to see strong returns as we remain agile and adapt to the fast-changing nature of the markets in which we operate”.
Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo said: “Ooredoo Group’s growth trajectory continues with the business delivering strong set of results, normalised proforma revenue grew by 4 percent to reach QR17bn year to date. The GCC markets have led that top line growth with increases in Kuwait by 12 percent, Oman 8 percent, and Qatar by 6 percent”.
He added: “Ooredoo Group’s strong focus on operational efficiencies and optimised Capex resulted in an EBITDA margin of 40 percent and a 3 percent improvement in Free Cash Flow over 9M 2021, despite inflationary headwinds in most of our markets, in the form of higher energy cost and currency depreciation. Our joint venture, Indosat Ooredoo Hutchison (IOH), remains on track to hit its targets outlined at the start of 2022. IOH will report Q3 results on October 28, 2022. We remain focused on our growth and look forward to continuing to deliver long term value for our shareholders, customers, and the markets in which we operate”.
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”.
Ooredoo Qatar saw good growth during the period. Reported revenue was up 6 percent year-on-year to QR5.7bn from QR5.4bn in 9M 2021, driven by growth in post-paid services, sales of Ooredoo tv, Ooredoo financial and B2B services. EBITDA reached QR2.8bn compared to QR2.9bn in 9M 2021, with EBITDA margin at 50 percent. Service revenue was up by 6 percent year-on-year, while the mobile customer base grew by 2 percent.
Of note, interest in FIFA World Cup Qatar 2022 had a marked impact on sales of the Ooredoo ONE home service, with the customer base growing 18 percent year-on-year. Total customer number reached 3.2 million.
The company continued to diversify its B2B services portfolio during the period, launching the Microsoft Intune solution for business customers and supporting Microsoft’s Qatar data centre regional launch. In addition, the company launched new packages for enterprise vehicle tracking and a range of special short-term cyber-security packages to help businesses protect themselves against DDoS attacks and web-related attacks during FIFA World Cup Qatar 2022. In addition, Ooredoo Qatar launched Apple Pay on Ooredoo App, extending the range of financial services. More than 50 percent of customers used the Ooredoo App as their main channel for transactions during the period.
Ooredoo Oman reported revenues of QR1.9bn, up 8 percent, primarily driven by higher wholesale revenue and device sales. EBITDA for the period increased 9 percent to QR983m, supported by a healthy EBITDA margin of 53 percent.
Ooredoo Kuwait reported a 12 percent increase in revenue to QR2.1bn and an increase in EBITDA of 13 percent, supported by a stable EBITDA margin of 30 percent.
Asiacell reported revenue of QR2.7bn, a decrease of 2 percent, due to the ongoing intense competition in Iraq. Asiacell’s EBITDA dropped by 7 percent due to lower revenue and higher energy costs.
Ooredoo Algeria reported revenue of QR1.7bn during the period and EBITDA increased by 3 percent to QR625m. In local currency terms revenue and EBITDA increased by 4 percent and 10 percent, respectively.
Ooredoo Tunisia reported revenue of QR1.1bn, a decrease of 8 percent for the period. In local currency terms revenue increased 2 percent, despite a decline in the Tunisian economy and currency depreciation of 10 percent.
The 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 percent of IOH’s profits as a contribution towards the Group’s net income, and no longer consolidates the Company’s revenue or EBITDA contribution.
Despite the ongoing shutdown of internet services in parts of Sagaing region and the tax increase on data services Ooredoo Myanmar reported flat revenues of QR798m and a 30 percent increase in EBITDA due to strict cost control. In local currency terms revenue was up by 19 percent.
In September, Ooredoo Group announced the sale of its telecom business in Myanmar to Nine Communications at an enterprise value of $576m and total equity consideration of $162m. This transaction is an important milestone in line with the Group’s strategic decisions to focus on markets where Ooredoo is leading. The sale is subject to customary closing conditions, including regulatory approvals in Myanmar.
Ooredoo Group recently unveiled the Company’s brand-new logo and tagline “Upgrade Your World”. The new tagline is about enabling human progress, reflecting the Company’s commitment to keep improving, never standing still.
In September, the Group announced that it is potentially carving out its tower portfolio, comprising of approximately 20,000 towers, to extract optimal value from its infrastructure and create more value for customers and shareholders.
Ooredoo has also recently won the “Best Investor Relations Officer in Qatar” award at the annual conference at the Middle East Investor Relations Association (MEIRA) Awards 2022 in Riyadh.
Ooredoo has announced the amendment of its Q3 2022 Financial Results’ conference call to be held on October 31, 2022 at 14:00, instead of the previously announced Date of November 1, 2022. Pre-registration is required at the link: http://ore.do/ir-call. Conference Call details are provided to investors upon registration.
