Chairman's Message

Strong foundations
for success

Dear Shareholders,

2020 was a year unlike any other, when communities around the world faced unprecedented challenges as a result of the COVID-19 pandemic and the subsequent global disruption. Families were separated; businesses were forced to find new ways of working or suspend operations; schools were closed; and life as we knew it underwent intense change.

It was a year when our core promise – to enrich the digital lives of our customers – took on a new level of relevance. For organisations that required significant numbers of employees to work from home, Ooredoo networks provided a vital lifeline to ensure business continuity and remote productivity. For schools and universities, Ooredoo services enabled education to continue online. Communication between families and friends migrated to video chats, made possible by the hard work of Ooredoo engineers across our footprint. Even our entertainment options took on heightened importance, as our rich portfolio of content provided a welcome distraction during difficult times. For many, digital lives became the most vibrant part of a daily routine during the pandemic.

We are hugely grateful to our leadership team, our people and our partners for the creativity, collaboration and professionalism that enabled Ooredoo to enhance our networks and update our services to meet heightened demand during 2020. The foundations we have built over time supported not only the introduction of new digital services, but also ensured that people stayed connected and engaged throughout this turbulent period.

Faisal Bin Thani Al Thani
Chairman

14 February 2021

Managing Director's Message

Strong progress in
2020

Dear Shareholders,

We maintained a stable financial position in 2020 – preserving healthy cash reserves and liquidity levels, and expanding our customer base – while developing commercial momentum through the year, ready to focus on the future post-pandemic.

These solid financial results were only possible because of the digital strategy we have pursued – to make it easier for customers to find, buy, and use our services online.

Ooredoo’s networks were more than ready to manage the surge in demand as people’s working and social lives moved online from March 2020 onwards, and our performance throughout 2020 has given our customers the confidence they need in the speed and reliability of Ooredoo networks.

Our leadership team is confident we can continue this positive momentum into 2021 and beyond. We are enhancing online customer services and promoting digitalisation to help simplify our cost structures whilst improving the customer experience. We are also in discussion on several infrastructure agreements that will further reduce costs.

We will continue to deepen our customers’ trust by providing leading networks, the best digital channel experiences, and a wide range of digital service offerings. And our investment in business services – cloud, Internet of Things, and ICT – will also deliver improved margins.

Aziz Aluthman Fakhroo
Managing Director, Ooredoo Group

14 February 2021

Delivering
robust results

  • Revenue - 28867 (Amount in QR millions)
  • Dividend per share - 0.25 (Amount in QR)
  • Net profit attributable to Ooredoo shareholders - 1126 (Amount in QR millions)
  • Earnings per share - 0.35 (Amount in QR)
  • EBITDA & EBITDA margin (%) - 12130 (Amount in QR millions)
  • Capital Expenditure & CAPEX/ Revenue % - 5790 (Amount in QR millions)

Revenue (Amount in QR millions)

  • 2020 - 28867
  • 2019 - 29916
  • 2018 - 29927
  • 2017 - 32646
  • 2016 - 32503

Dividend per share (Amount in QR)

  • 2020 - 0.25
  • 2019 - 0.25
  • 2018 - 0.25
  • 2017 - 0.35
  • 2016 - 0.35

Net profit attributable to Ooredoo shareholders (Amount in QR millions)

  • 2020 - 1126
  • 2019 - 1725
  • 2018 - 1565
  • 2017 - 1897
  • 2016 - 2193

Earnings per share (Amount in QR)

  • 2020 - 0.35
  • 2019 - 0.54
  • 2018 - 0.49
  • 2017 - 0.59
  • 2016 - 0.68

EBITDA & EBITDA margin (%) (Amount in QR millions)

  • 2020 - 12130
  • 2019 - 12847
  • 2018 - 12202
  • 2017 - 13640
  • 2016 - 13379

Capital Expenditure & CAPEX/ Revenue % (Amount in QR millions)

  • 2020 - 5790
  • 2019 - 5869
  • 2018 - 4872
  • 2017 - 4541
  • 2016 - 5982

An agile, adaptable
strategy

Ooredoo’s vision is to ‘Enrich people’s digital lives’; exceeding customer expectations by delivering superior products, services and customer experiences in the Digital Age. Our Group values – Caring, Connecting, and Challenging – extend across all Operating Companies, guiding every initiative and interaction.

The lessons of 2020 helped inform our ongoing strategic review, sharpening the importance of focusing on our points of differentiation in an increasingly competitive telecommunications landscape and keeping pace with the progressive generational evolution of our underlying technology.

Our four strategic pillars:

  • Core

    We will continue to accelerate the performance of our core business – investing in our people, our networks and our services in order to win in the marketplace and maximise the return on our assets.

  • Digital

    We are making it easier for our customers to find, buy and use our products online in order to attract and retain customers at a lower cost, driving value to our shareholders.

  • Infrastracture

    As we work to be more asset-light, we will extract optimal value from our infrastructure by executing network sharing and infrastructure deals.

  • Portfolio

    We will adopt a proactive portfolio strategy that will drive, and derive, additional value across our footprint.

These strategic pillars are underpinned by critical capabilities:

  • Our operating
    model
  • Changes to our
    ways of working
  • Our talent, and
    how we manage it
  • Establishing effective
    transformation capabilities

Country performance

Headquartered in Doha, Qatar, Ooredoo is a global telecommunication company with a consolidated global customer base of more than 121 million, as at 31 December 2020. Its operating network extends across 10 markets in the Middle East, North Africa and Southeast Asia.

  • North Africa - 20.7 m customers
  • Middle East - 24.8 m customers
  • Southeast Asia - 75.5 m customers

Qatar

Ooredoo Qatar successfully navigated the COVID-19 pandemic while prioritizing the health and safety of its employees and ensuring uninterrupted service for its customers. The company remained committed to its digital transformation strategy despite the challenges, expanding its 5G network and enhancing its product offering. It also supported the wider community during this difficult period.

3%
Customers
25%
Revenue
30%
EBITDA
16%
CapEx

Total customers

  • 2020 - 3274
  • 2019 - 3271
  • 2018 - 3281
  • 2017 - 3436
  • 2016 - 3484
2020
Revenue QRm - 7073
EBITDA QRm - 3696
EBITDA Margin % - 52%
Blended ARPU* QR - 90.2
Employees - 1217
2019
Revenue QRm - 7301
EBITDA QRm - 3957
EBITDA Margin % - 54%
Blended ARPU* QR - 107.4
Employees - 1303
2018
Revenue QRm - 7742
EBITDA QRm - 3987
EBITDA Margin % - 52%
Blended ARPU* QR - 114.3
Employees - 1362
2017
Revenue QRm - 7791
EBITDA QRm - 3916
EBITDA Margin % - 50%
Blended ARPU* QR - 112.8
Employees - 1490
2016
Revenue QRm - 8007
EBITDA QRm - 4050
EBITDA Margin % - 51%
Blended ARPU* QR - 120.9
Employees - 1530

* Blended ARPU is for the three months ending 31 December.

Indonesia

Indosat Ooredoo continued on its transformation journey, focusing on digitalisation and simplifying its consumer experience, which, despite the challenges brought on by the global pandemic, contributed to it becoming the fastest-growing company in the Indonesian telecoms sector in 2020. Throughout the crisis, Indosat Ooredoo maintained an unwavering focus on the health and wellbeing of its employees and customers, in addition to supporting the government with its initiatives to mitigate the pandemic’s health and economic impact on the country.

50%
Customers
24%
Revenue
26%
EBITDA
39%
CapEx

Total customers

  • 2020 - 60274
  • 2019 - 59294
  • 2018 - 58074
  • 2017 - 110200
  • 2016 - 85654
2020
Revenue QRm - 6983
EBITDA QRm - 3205
EBITDA Margin % - 46%
Blended ARPU* QR - 8.3
Employees - 3104
2019
Revenue QRm - 6728
EBITDA QRm - 2899
EBITDA Margin % - 43%
Blended ARPU* QR - 7.3
Employees - 3708
2018
Revenue QRm - 5919
EBITDA QRm - 1969
EBITDA Margin % - 33%
Blended ARPU* QR - 6.1
Employees - 3700
2017
Revenue QRm - 8145
EBITDA QRm - 3728
EBITDA Margin % - 46%
Blended ARPU* QR - 5
Employees - 4391
2016
Revenue QRm - 7994
EBITDA QRm - 3724
EBITDA Margin % - 47%
Blended ARPU* QR - 6.7
Employees - 4421

* Blended ARPU is for the three months ending 31 December.

Kuwait

Building on the success of previous years, Ooredoo Kuwait continued its 5G commercial rollout in 2020, reaching nationwide coverage, in line with the company’s vision of empowering Kuwait’s society by driving digital transformation and enriching people’s digital lives.

Ooredoo Kuwait was quick to react to the needs of customers during the pandemic and ensured the provision of uninterrupted connectivity services. As data usage increased more than calls, the company optimised its network and converted 2G and 3G networks to 4G to give more capacity to users. In addition, Ooredoo was the first to provide customers with the highest 5G internet speeds in Kuwait and witnessed an increase in market share to 36%.

2%
Customers
9%
Revenue
5%
EBITDA
6%
CapEx

Total customers

  • 2020 - 2531
  • 2019 - 2588
  • 2018 - 2311
  • 2017 - 2216
  • 2016 - 2346
2020
Revenue QRm - 2492
EBITDA QRm - 617
EBITDA Margin % - 25%
Blended ARPU* QR - 59.3
Employees - 1363
2019
Revenue QRm - 2772
EBITDA QRm - 867
EBITDA Margin % - 31%
Blended ARPU* QR - 58.5
Employees - 1132
2018
Revenue QRm - 2905
EBITDA QRm - 662
EBITDA Margin % - 23%
Blended ARPU* QR - 68.8
Employees - 1225
2017
Revenue QRm - 2675
EBITDA QRm - 652
EBITDA Margin % - 24%
Blended ARPU* QR - 72.7
Employees - 1140
2016
Revenue QRm - 2382
EBITDA QRm - 614
EBITDA Margin % - 26%
Blended ARPU* QR - 66.5
Employees - 763

* Blended ARPU is for the three months ending 31 December.

Oman

During 2020, Ooredoo Oman expanded its network, launched 5G services for consumers and businesses and provided 24/7 digital access and support for customers, enabling the country to remain connected during the pandemic and lockdown.

The pandemic accelerated Oman’s digital transformation agenda in 2020. Thanks to Ooredoo Oman’s resilience and adaptability, the company continued operations and provided customers with uninterrupted connectivity and service through the Contact Centre, eShop, eCare and other digital channels available 24/7. Interactions over digital channels doubled from Q1 2020 to Q3/Q4 2020.

2%
Customers
9%
Revenue
11%
EBITDA
10%
CapEx

Total customers

  • 2020 - 2795
  • 2019 - 2864
  • 2018 - 3014
  • 2017 - 3072
  • 2016 - 2947
2020
Revenue QRm - 2509
EBITDA QRm - 1341
EBITDA Margin % - 53%
Blended ARPU* QR - 50.4
Employees - 983
2019
Revenue QRm - 2703
EBITDA QRm - 1490
EBITDA Margin % - 55%
Blended ARPU* QR - 54.7
Employees - 1022
2018
Revenue QRm - 2685
EBITDA QRm - 1463
EBITDA Margin % - 54%
Blended ARPU* QR - 60.1
Employees - 968
2017
Revenue QRm - 2670
EBITDA QRm - 1429
EBITDA Margin % - 54%
Blended ARPU* QR - 62.6
Employees - 1044
2016
Revenue QRm - 2639
EBITDA QRm - 1404
EBITDA Margin % - 53%
Blended ARPU* QR - 66.6
Employees - 1056

* Blended ARPU is for the three months ending 31 December.

Asiacell

Asiacell Iraq made great strides with its digital transformation strategy and continued to play a significant role in Iraq’s infrastructure development and modernisation. The company’s contribution to the digital ecosystem of country was made evident during the COVID-19 pandemic, as it played a vital role in keeping people connected whilst promoting social distancing. The key priorities of Asiacell Iraq were the health and safety of its people and supporting the nation through this challenging period.

12%
Customers
14%
Revenue
15%
EBITDA
10%
CapEx

Total customers

  • 2020 - 14719
  • 2019 - 14162
  • 2018 - 14232
  • 2017 - 12925
  • 2016 - 11987
2020
Revenue QRm - 4020
EBITDA QRm - 1765
EBITDA Margin % - 44%
Blended ARPU* QR - 22.3
Employees - 2833
2019
Revenue QRm - 4572
EBITDA QRm - 2040
EBITDA Margin % - 45%
Blended ARPU* QR - 29.2
Employees - 3167
2018
Revenue QRm - 4449
EBITDA QRm - 2093
EBITDA Margin % - 47%
Blended ARPU* QR - 26.8
Employees - 2832
2017
Revenue QRm - 4490
EBITDA QRm - 1982
EBITDA Margin % - 44%
Blended ARPU* QR - 29.9
Employees - 2773
2016
Revenue QRm - 4217
EBITDA QRm - 1923
EBITDA Margin % - 46%
Blended ARPU* QR - 30.3
Employees - 2747

* Blended ARPU is for the three months ending 31 December.

Algeria

Ooredoo Algeria prioritised its digital action plan and focused on four specific elements. Firstly, the company launched targeted marketing campaigns to help customers find Ooredoo products and offers online and to facilitate a shopping experience from the safety of their homes. Secondly, the company focused on developing and driving digital sales. The third element was digital care, through the upgrade of all self-care and digital channels, with new features on the mobile app facilitating payments and new purchases. The fourth element was new business and partnerships, through which Ooredoo Algeria is well-positioned to capture top-line opportunities that are adjacent to the core telco proposition and add new revenue streams.

10%
Customers
8%
Revenue
6%
EBITDA
9%
CapEx

Total customers

  • 2020 - 12523
  • 2019 - 12615
  • 2018 - 13887
  • 2017 - 14294
  • 2016 - 13769
2020
Revenue QRm - 2256
EBITDA QRm - 744
EBITDA Margin % - 33%
Blended ARPU* QR - 15.2
Employees - 2955
2019
Revenue QRm - 2501
EBITDA QRm - 867
EBITDA Margin % - 35%
Blended ARPU* QR - 15.5
Employees - 2895
2018
Revenue QRm - 2760
EBITDA QRm - 1029
EBITDA Margin % - 37%
Blended ARPU* QR - 15.5
Employees - 2807
2017
Revenue QRm - 3422
EBITDA QRm - 1506
EBITDA Margin % - 44%
Blended ARPU* QR - 18.2
Employees - 2785
2016
Revenue QRm - 3732
EBITDA QRm - 1308
EBITDA Margin % - 35%
Blended ARPU* QR - 21.2
Employees - 2830

* Blended ARPU is for the three months ending 31 December.

Tunisia

During 2020, Ooredoo Tunisia solidified its position as the number one telecommunications operator by market share, network speed and customer service, while demonstrating the critical role it plays in the nation’s digital infrastructure and social fabric. In the face of unprecedented health and economic conditions resulting from the COVID-19 pandemic, the company retained over 43% of the total Tunisian mobile market.

7%
Customers
5%
Revenue
5%
EBITDA
4%
CapEx

Total customers

  • 2020 - 8078
  • 2019 - 9163
  • 2018 - 9052
  • 2017 - 8352
  • 2016 - 7961
2020
Revenue QRm - 1516
EBITDA QRm - 650
EBITDA Margin % - 43%
Blended ARPU* QR - 12.5
Employees - 1591
2019
Revenue QRm - 1476
EBITDA QRm - 682
EBITDA Margin % - 46%
Blended ARPU* QR - 11.2
Employees - 1560
2018
Revenue QRm - 1526
EBITDA QRm - 595
EBITDA Margin % - 39%
Blended ARPU* QR - 12.3
Employees - 1585
2017
Revenue QRm - 1530
EBITDA QRm - 606
EBITDA Margin % - 40%
Blended ARPU* QR - 11.9
Employees - 1600
2016
Revenue QRm - 1714
EBITDA QRm - 686
EBITDA Margin % - 40%
Blended ARPU* QR - 14
Employees - 1613

* Blended ARPU is for the three months ending 31 December.

Myanmar

Throughout the year, Ooredoo Myanmar continued to invest in its market leading network, with LTE now covering over 93% of the population following the nationwide 4G LTE Turbo launch. Fiberisation expansion grew to 1,500 sites nationwide and modernisation of its enterprise data warehouse continued in line with plans for completion in 2021.

Ooredoo Myanmar also accelerated its digital transformation by rolling out a wide assortment of value-added products and lifestyle enabling services for consumers, while continuously enhancing the resilience of its channelsand overall customer experience.

12%
Customers
4%
Revenue
3%
EBITDA
3%
CapEx

Total customers

  • 2020 - 14716
  • 2019 - 11527
  • 2018 - 9605
  • 2017 - 7915
  • 2016 - 9000
2020
Revenue QRm - 1172
EBITDA QRm - 314
EBITDA Margin % - 27%
Blended ARPU* QR - 6.8
Employees - 849
2019
Revenue QRm - 1062
EBITDA QRm - 280
EBITDA Margin % - 26%
Blended ARPU* QR - 7.9
Employees - 836
2018
Revenue QRm - 1262
EBITDA QRm - 197
EBITDA Margin % - 16%
Blended ARPU* QR - 8.7
Employees - 914
2017
Revenue QRm - 1324
EBITDA QRm - 152
EBITDA Margin % - 11%
Blended ARPU* QR - 15
Employees - 966
2016
Revenue QRm - 1470
EBITDA QRm - (9)
EBITDA Margin % - -1%
Blended ARPU* QR - 12.2
Employees - 939

* Blended ARPU is for the three months ending 31 December.

Palestine

Ooredoo Palestine reported solid financial growth in 2020, advancing towards its strategic objectives. The company expanded and enhanced its network to provide 24/7 connectivity during the lockdown and thereafter, gained significant market share in the West Bank, and launched several initiatives and services to support its employees, customers and communities during the pandemic.

1%
Customers
1%
Revenue
1%
EBITDA
0.7%
CapEx

Total customers

  • 2020 - 1312
  • 2019 - 1323
  • 2018 - 1286
  • 2017 - 1016
  • 2016 - 773
2020
Revenue QRm - 370
EBITDA QRm - 125
EBITDA Margin % - 34%
Blended ARPU* QR - 22.9
Employees - 514
2019
Revenue QRm - 362
EBITDA QRm - 109
EBITDA Margin % - 30%
Blended ARPU* QR - 23
Employees - 537
2018
Revenue QRm - 366
EBITDA QRm - 96
EBITDA Margin % - 26%
Blended ARPU* QR - 21.5
Employees - 534
2017
Revenue QRm - 312
EBITDA QRm - 69
EBITDA Margin % - 22%
Blended ARPU* QR - 25.1
Employees - 572
2016
Revenue QRm - 306
EBITDA QRm - 80
EBITDA Margin % - 26%
Blended ARPU* QR - 27.2
Employees - 447

* Blended ARPU is for the three months ending 31 December.

Maldives

Ooredoo Maldives invested in scaling up its digital infrastructure. The m-Faisaa mobile banking app was upgraded with further functionalities added, and the company launched the ‘Do it All from App’ digital campaign to drive awareness about its features. Additionally, Ooredoo Maldives launched eSIMs through its digital channels, providing a 100% digital contactless journey for customers and catering to a growing market segment, with 28% of eSIM-capable devices in Maldives now using eSIM.

0.3%
Customers
1.4%
Revenue
1.7%
EBITDA
1.6%
CapEx

Total customers

  • 2020 - 349
  • 2019 - 405
  • 2018 - 440
  • 2017 - 440
  • 2016 - 397
2020
Revenue QRm - 407
EBITDA QRm - 202
EBITDA Margin % - 50%
Blended ARPU* QR - 60.5
Employees - 366
2019
Revenue QRm - 481
EBITDA QRm - 264
EBITDA Margin % - 55%
Blended ARPU* QR - 56.2
Employees - 370
2018
Revenue QRm - 461
EBITDA QRm - 237
EBITDA Margin % - 52%
Blended ARPU* QR - 52.3
Employees - 359
2017
Revenue QRm - 435
EBITDA QRm - 236
EBITDA Margin % - 54%
Blended ARPU* QR - 53.3
Employees - 345
2016
Revenue QRm - 381
EBITDA QRm - 206
EBITDA Margin % - 54%
Blended ARPU* QR - 48.6
Employees - 331

* Blended ARPU is for the three months ending 31 December.