Chairman of Ooredoo, Sheikh Faisal bin Thani Al Thani.
Doha: Ooredoo Group yesterday reported net profit of QR1.5bn for the first nine months of 2020, an increase of 16 percent compared to the same period last year, due to a more favorable Foreign Exchange environment.
Ooredoo Group expanded its customer base by 3 percent to 119 million customers, boosted by additions in Indonesia and Myanmar during nine months (9M) of 2020. Ooredoo Group has healthy cash reserve and liquidity levels to be able to absorb the impact of COVID-19 pandemic.
Its revenue declined by 3 percent year-on-year to QR21.4bn at 9M of 2020, due to the COVID-19 pandemic impact, with a reduction in handset sales and roaming business as well as macroeconomic weakness in some of its markets. This was partially offset by growth in Indonesia.
Sheikh Faisal bin Thani Al Thani, Chairman of Ooredoo Group, said: “Ooredoo Group has been fortunate to have a well-diversified business - across geography and customer composition - in addition to a strong balance sheet, which has helped us maintain resilience during these challenging times. We reported a Group net profit of QR1.5bn for the first nine months of 2020, an increase of 16 percent compared to the same period last year. We have seen a positive trend of revenue growth in the vast majority of our markets when comparing the third quarter with the second quarter of 2020.”
“Digital transformation continues to be a key value driver for our business. Our leadership in this area enabled us to seamlessly respond to the new operating environment and serve our customers in a safe and convenient way, in spite of the movement restrictions. We expanded our customer base with the launch of new products such as Ooredoo Oman’s mobile wallet, Pay+, and Asiacell’s new mobile app which has become the most downloaded app by a telecom operator in Iraq.”
“For the communities we operate in, we launched a number of initiatives to provide support to medical centres through donation of medical equipment, and for students, we provided free data and e-learning platforms to support remote learning.”
Its EBITDA declined by 4 percent year-on-year to QR9.2bn at 9M of 2020, impacted by lower revenues and higher cost of sales as well as challenging market conditions in Algeria, Kuwait, Iraq and Oman. The company maintains its focus on digitalization and cost optimization, which is reflected in the strong EBITDA margin for the 9M and Q3 (third quarter) of 2020 periods.
Group CEO of Ooredoo, Sheikh Saud bin Nasser Al Thani
Sheikh Saud bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo said: “Ooredoo Group reported a healthy set of results, despite challenging circumstances due to the COVID-19 pandemic. Group revenues for the first nine months of 2020 were QR21bn, down 3 percent compared to the same period last year, due to macroeconomic weaknesses in some of our markets that were partially offset by a robust performance in Indonesia.
“Indosat Ooredoo reported revenue growth of 6 percent as it implemented its strategy of offering simple, relevant, and transparent products. Ooredoo Kuwait experienced Revenue growth in Q3 (third quarter) over Q2 (second quarter) 2020, Ooredoo Algeria showed signs off an improved market situation in the recent months. Ooredoo Oman increased 5G coverage further, while Asiacell is preparing for the launch of LTE in 2021. Ooredoo Tunisia improved its mobile data leadership position and in our home market in Qatar, we improved revenue sequentially and year on year in Q3.”
“We continued to focus of optimising our cost base to absorb some of the pressure from the decline in revenues. For the first nine months of 2020, Group EBITDA declined 4 percent to QR 9.2bn, compared to the same period last year, due the decline in revenues. However, Group net profit increased 16 percent during the same period, benefitting from FX gains in certain markets.”
Data revenues account for more than 50 percent of total revenue driven by its data leadership and digital transformation initiatives across the countries it operates in.
Ooredoo Group reinforced its leadership as a digital enabler with strong demand for its offerings including Ooredoo Oman’s mobile wallet, Pay+, developed in conjunction with National Bank of Oman and Asiacell’s new mobile app, which has become the most downloaded app by a telecom operator in Iraq.
Ooredoo Group launched a number of initiatives to support the communities in most need of assistance during the pandemic public health crisis, with a focus on the medical and education sectors.
Ooredoo Qatar focused on growth and strengthened its leadership position in the face of a range of challenges caused by COVID-19 pandemic. The company saw positive returns from fixed and ICT services in particular. Reported revenue was QR5.3bn while EBITDA stood at QR2.9bn. Total customers reached 3.3 million, up 2.7 percent year-on-year, with the mobile customer base growing by 3.2 percent, and the postpaid customer base up by 2.8 percent.
EBITDA margin sustained its positive trend at 55 percent. EBITDA was strengthened by a range of cost optimisation measures, including franchising shops, re-negotiating major content deals, and an increased focus on digitisation and related programmes. The launch of Ooredoo ONE ‘All-In-One’ Home Service comprising TV, home broadband and landline triple play extended the range of home entertainment options for the community and contributed to customer growth for Ooredoo tv of 2 percent year-on-year.
Ooredoo Qatar’s network enhancement programme ensured network and telecom support and readiness for quarantine centres and hubs as required. More than 463,000 homes across the country are now connected to Ooredoo Fibre.
