Ooredoo posts QR1.7bn profit

July 24, 2014 - 7:26:44 am

DOHA: Telecom major Ooredoo’s revenue touched QR16.5bn in the first half of 2014 (H1, 14), down 3 percent compared to a year ago. The group’s strong performance in Qatar, Oman and Algeria was offset by decline in revenue in Indonesia, Kuwait and Iraq.

Ooredoo’s net profit attributable to its shareholders fell by 2 percent to QR1.7bn year-on-year. Announcing the results, the Group yesterday said excluding the impact of Indonesian foreign exchange, its revenue would have increased by 1 percent. Net profit would also have grown by 1 percent if the impact of Myanmar start-up costs and the foreign exchange were excluded. The shares of Ooredoo edged 2.32 percent down to QR130.50 on Qatar bourse yesterday.

Ooredoo’s EBITDA decreased by 10 percent to QR6.8bn in H1, 14 (H1, 2013: QR 7.6bn) with EBITDA margin decreasing to 42 percent (H1 2013: 45 percent) due to lower revenues and the continued investment across the business into customer acquisition and retention, global brand roll-out, service launches and customer experience. 

Data revenue reached 20 percent of total group revenue, as customers increasingly consume data based services. Customer base grew by 2 percent to 93.9 million in H1, 14 as Ooredoo captured an increasing share of its markets through best-in-class telecoms services.

Commenting on the results, Sheikh Abdullah bin Mohammed bin Saud Al Thani, Chairman of Ooredoo, said: “Ooredoo has produced solid revenue, profitability and customer growth for the first half of 2014 against a backdrop of challenges in some of our markets. Our strategy is based on the enormous positive power of global connectivity which Ooredoo is delivering across its markets through its continued investment in world-leading broadband networks and services. With the right level of investment, we can continue to transform people’s lives in markets from Algeria to Myanmar, attracting growing numbers of customers to our global network.”

Dr Nasser Marafih, Group Chief Executive Officer of Ooredoo, said: “Ooredoo’s results for the first half of 2014 reflect our commitment to investment across our markets to ensure we are building a global platform of growth that will generate customer and shareholder value over the long term. We are making great progress in developing revenues from our core areas of growth: data and B2B. Our data revenue has reached 20 percent of total revenue across the Group demonstrating both the demand for data and our ability to deliver to our customers, wherever they are. Costs are being managed proactively across the Group and we are evaluating all opportunities to share infrastructure with competitors and partners to ensure we are competing from a highly efficient cost base..”

Ooredoo Qatar delivered strong results during the period, with revenue growth driven in particular by an increased focus on business services and the on-going development of the data market. Revenue was up by 9 percent year-on-year to QR3.5bn (H1 2013: QR3.2bn), while EBITDA performance showed a healthy increase of 9 percent year-on-year to QR1.7bn. Customers increased by 9 percent to 2.99 million (H1 2013: 2.8 million) — almost reaching the three million consolidated customer milestone for the first time in the company’s history. 

The net profit of Indosat in Indonesia was QR99m. As reported on July 23, 2014 Wataniya Telecom’s revenue increased 3 percent to QR4.9bn in H1, 14 while EBITDA stood at QR1.7bn. 

Ooredoo Algeria continues to perform strongly as it benefits from its re-brand to the global Ooredoo brand and the rapid roll-out of its 3G offering in Algeria. Ooredoo Algeria’s revenues increased by 24 percent to QR2.3bn.

Ooredoo Kuwait is re-capturing a growing share of the market as it targets a return to revenue growth with a 19 percent increase in customers to 2.33 million in H1, 2014 compared to H1, 2013. 

Ooredoo Tunisia registered a  revenue of QR1.19bn. Wataniya Palestine’s revenue remained stable for the half year 2014 at QR 156m, a 3 percent reduction compared to H1, 2013. Ooredoo Maldives delivered a net profit of QR 2m. Nawras’ (Oman) revenue growth of 10 percent was driven by mobile and fixed data revenues.

Ooredoo Myanmar continued its preparations to launch services in Myanmar following the official award of its licence.

The Peninsula

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