Ooredoo Group has reported a QR15.3bn revenue in the first half of 2018, driven by strong contributions from Qatar, Iraq, Oman, Kuwait, Tunisia, and Myanmar offset by reductions in Indonesia and Algeria.
Ooredoo chairman Sheikh Abdulla bin Mohamed bin Saud al-Thani said, “Our financial results come at time when the telecom sector is undergoing significant structural changes combined with unfavourable foreign exchange rates, as well as challenging market conditions.”
“While these factors have affected our financial results for the period in some markets, we have made good operational progress in other markets and I am confident Ooredoo has the right strategy to grow in the new market environment,” he continued.
According to Ooredoo, group revenue decreased by 6% year-on-year, while the group EBITDA (earnings before interest taxes depreciation and amortisation) stood at QR6.2bn with a corresponding EBITDA margin of 41%. Group EBITDA decreased by 10% year-on-year mainly due to lower revenue.
Group net profit attributable to Ooredoo shareholders stood at QR689mn. The positive performances in Iraq and Oman were offset by market challenges and lower revenue in Indonesia and Algeria, as well as a substantial foreign exchange (FX) loss in Myanmar. Pre-FX decrease was 18% compared to the reported 37%, Ooredoo said.
Group customer number stood at 130mn, negatively impacted by the new SIM card registration requirements by the Indonesian regulator, while increased monetisation of data business, with significant data growth coming from consumer and enterprise customers, saw data revenue increasing to 45% of group revenue. Revenue from data contributed almost QR7bn in H1 2018.
Ooredoo Group CEO Sheikh Saud bin Nasser al-Thani said, “The first half of 2018 saw a mixed set of results across our operations, with strong performances in Iraq, Tunisia, and Oman, being more than offset by challenging market conditions in Indonesia and Algeria, as well as by FX losses in Myanmar.”
He added: “We have seen revenue increases in Iraq, Oman, Kuwait, Tunisia, and Myanmar. 4G networks are now available in eight of our 10 markets. In Qatar, we launched the world’s first 5G network. We defended our market leadership position in our domestic market as well as in Tunisia and Iraq. Our focus on efficiencies resulted in a sequential improvement of our margins.
“In all our markets, we have focused on empowering our customers and supporting the local national development agendas by providing fast, reliable, and innovative connectivity solutions. Forty five percent of our revenues are now generated from our data and digital business.”
Ooredoo Qatar reported revenue of QR3.9bn in H1 2018, while EBITDA was stable at almost QR2.0bn. Lower mobile voice and roaming revenues were partially offset by strong performance in corporate ICT sales, following multiple new product launches like the new Fleet Management Services in Qatar. Customer numbers stood at 3.3mn. Ooredoo Oman delivered a robust set of results with growth across the board. Revenues increased by almost 3% to reach QR1.4bn in H1 2018, driven by mobile and fixed data revenues. EBITDA grew by almost 3% to QR711mn in H1 2018, reflecting efficient management of costs.
Ooredoo Kuwait reported a strong 23% revenue growth in H1 2018 to QR1.5bn mainly driven by non-recurring revenue. The company’s focus remains on digitisation and continued growth in its B2B service offering despite a highly-competitive marketplace.
Asiacell Iraq maintained its mobile revenue leadership and delivered good results for the first half of the year. Revenues increased by more than 3% to almost QR2.2bn in H1 2018. EBITDA was up 10% to QR1.1bn, growing at a faster rate than revenue and reflecting good cost management.
Ooredoo Algeria maintained mobile data leadership during H1 2018, despite challenging market conditions. Revenues for H1 2018 were QR1.4bn.
Ooredoo Tunisia reported a robust set of results with growth across all key indicators. Revenues increased by almost 4% to QR771mn in H1 2018, in local currency terms the increase was even stronger at 8%.
Indosat Ooredoo revenue for the half year stood at QR2.9bn, down 29% compared to the same period last year, while Ooredoo Myanmar reported another strong set of results, supported by solid growth in data and digital revenues and new customer additions.
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