Ooredoo Group posted a net profit of QR193mn in the first quarter of the year, the company announced last night.

Group net profit attributable to Ooredoo shareholders decreased by 50% year-on-year to (QR193mn) in Q1, mainly due to foreign exchange impact coming from Myanmar with an FX loss in Q1, 2021 versus an FX gain in Q1, 2020.

Excluding the FX impact, the net profit increased by 120%, Ooredoo said.

Marginal year-on-year revenue decline of 1% to QR7.2bn in Q1, 2021 was due to a negative FX impact. Despite the Covid-19 pandemic (excluding FX impact) revenue increased by 1%, mainly driven by growth in its home market- Qatar and in Indonesia.

EBITDA increased by 6% year-on-year to QR3.2bn in Q1, 2021, as the company maintains its focus on digitalisation and cost optimisation.

EBITDA margin increased to 45% in Q1, 2021 from 41% in Q1, 2020, supported by EBITDA margin expansion in Indonesia, Kuwait, Iraq and Myanmar. Excluding FX impact, EBITDA increased by 9%.

Data revenues account for more than 55% of total revenue driven by data leadership and digital transformation initiatives across the operations, Ooredoo said.

Commenting on the results, Sheikh Faisal bin Thani al-Thani, Ooredoo chairman said, “Ooredoo Group delivered a robust set of results during the first quarter of 2021 despite challenging market conditions across many of our territories. We remained focused on our digital transformation agenda which has enabled us to create value for our customers by offering a seamless and convenient user experience as well as optimise our cost base by streamlining and automating processes. Consequently, our EBITDA margin improved to 45% in Q1, 2021 compared to 41% for the same period last year.

“We made good progress with our strategy to move to a more efficient and flexible asset-light model with the successful sale and leaseback agreement valued at $750mn for more than 4,200 of our telecom towers in Indonesia to Edge Point Indonesia. Monetising these assets forms an integral part of our group strategy to create value for both our shareholders and customers.

“During the quarter, Ooredoo Group successfully priced its $1bn bond issuance, reflecting the market’s confidence in the strength and stability of our balance sheet as well as our strategy to deliver new and innovative solutions to our customers by leveraging our world class technology and infrastructure.”

Aziz Aluthman Fakhroo, managing director, Ooredoo said, “I am pleased to report that Ooredoo Group had a solid start to the year, despite challenging market conditions due to the Covid-19 pandemic. Ooredoo Group delivered a 6% increase in EBITDA to QR3.2bn in Q1, 2021 compared to the same period last year. The growth was driven by the ongoing implementation of our cost optimisation strategy which includes leveraging technology to drive efficiency.

“As a result, our EBITDA margin for the period increased to 45% in Q1 2021 compared to 41% for the same period last year, supported by margin expansion in Indonesia, Kuwait, Myanmar and Iraq.”

Revenues remained under pressure due to a soft macroeconomic environment in many of our markets.”

Ooredoo Group reported revenues of QR7.2bn during the first quarter, down 1% compared to the same period in the previous year.

Indosat Ooredoo continued to make strong progress with its strategy of offering simple, relevant, and transparent products supporting a 13% increase in revenue and a 36% increase in EBITDA.

Fakhroo said, “Ooredoo Group invests further in its infrastructure to bring world class services to its customers. During the quarter Asiacell launched 4G in Iraq and Ooredoo Oman is preparing for the launch of mobile 5G services in Q2, 2021.”

 
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