Doha, Qatar, 29 October 2019: Ooredoo Q.P.S.C. (“Ooredoo”) - Ticker: ORDS today announced its financial results for the nine months ended 30 September 2019.
|||Quarterly Analysis||Nine Month Analysis|
|Q3 2019||Q3 2018||% Change||9M 2019||9M 2018||% Change|
|Consolidated Revenue (QAR m)||7,457||7,409||1%||21,965||22,531||-3%|
|EBITDA (QAR m)||3,325||3,125||6%||9,664||9,337||4%|
|EBITDA Margin (%)||45%||42%||-||44%||41%||-|
|Net Profit Attributable to Ooredoo Shareholders (QAR m)||424||403||5%||1,265||1,092||16%|
|Customers in million (consolidated)||116||120||-3%||116||120||-3%|
- Strong Q3 2019 with some Revenue growth (+1% yoy) contributing to a strong EBITDA improvement (+6% yoy)
- 9M 2019 Group EBITDA increased by 4% year-on-year to QAR 9.7 billion, with a corresponding EBITDA margin of 44%, driven by the company’s group-wide efficiency programme and a positive impact from the implementation of the new IFRS 16 accounting standard. Pre FX EBITDA increased by 5%.
- 9M 2019 Group Revenue before the FX impact decreased by 1%. Reported Group Revenue was QAR 22.0 billion, a decline of 3% compared to the same period last year, impacted by the industry wide shift from voice to data consumption, a reduction in handset sales as well as macroeconomic and currency weakness in some of our markets.
- Group Net Profit attributable to Ooredoo shareholders increased by 16% to QAR 1.3 billion at 9M 2019, compared to the same period last year. Growth was driven by an increase in EBITDA and a more favorable FX environment compared to 2018 partially offset by a negative IFRS16 impact on Net Profit
- The Group customer base was 116 million up by one million over Q2 2019 mainly driven by new customers in Indonesia and Iraq
- Ooredoo Group leads in 5G adoption with live commercial 5G networks in Qatar and Kuwait and successful 5G testing in Oman. Network expansion continued to be a key driver of growth. Ooredoo Tunisia continued its 4G rollout with many new B2B clients connected. Ooredoo Myanmar deployed more LTE1800 sites to reinforce existing nationwide coverage, contributing to sequential growth in revenues for the quarter. In Algeria, 4G network expansion continued with 64% of the population covered.
- Ooredoo Algeria appointed Nikolai Beckers as Chief Executive Officer in August 2019. With over 20 years of experience across the telecommunication and ICTO industries across Europe and Asia, he will play a key role in realising Ooredoo’s ambitions in Algeria, leading the telecom operations during a period of digital transformation.
- In October 2019 Indosat Ooredoo signed a Sales and Leaseback Agreements with Mitratel and Protelindo, for the sale of 3,100 telecommunications towers in Indonesia for a total transaction value of approx. QAR 1.6 billion, enabling Indosat Ooredoo to unlock value from a portion of its tower business.
- Ooredoo Group’s commitment to excellence in investor relations was recognised by the Institutional Investor Research Group with the special distinction of ‘Most Honoured Company’ and by the Middle East Investor Relations Association (MEIRA) Annual Conference and Awards with awards for the Best Corporate for Investor Relations – Qatar and Best Investor Relations Professional – Qatar.
Commenting on the results, H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, Chairman of Ooredoo, said:
“We are seeing very good progress with the execution of our digital strategy, positioning Ooredoo Group as the leading operator for innovative digital solutions across our ten markets of operations. At the same time, we continued to leverage group synergies and digitisation to optimise our cost base to deliver value in a fast evolving telecommunications landscape.
I am pleased to report a robust set of results during the first nine months of 2019 with Group net profit increasing 16% to QAR 1.3 billion, compared to the same period last year. Growth was achieved despite challenges from industry wide shifts away from voice and SMS services, which means that our strategy is working and showing positive results.
We remain focused on the future with an emphasis on transforming our business to meet the digital needs of our customers and support the adoption of new technologies. In our home market in Qatar, we continued our 5G roll out, which will power the IoT (“Internet of Things”) services that we launched during the quarter. Our leading network infrastructure continues to receive international acclaim, with Ooredoo Qatar winning four awards from Ookla for the best and fastest mobile network, best mobile coverage and fastest ISP.”
Also commenting on the results, Sheikh Saud bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo said:
“Our focus on efficiency and digitisation continues to deliver positive results as we harness group wide synergies to deliver award winning products and services for our customers.
The results for the first nine months of 2019 reflect these initiatives with the improvement of our 9M 2019 EBITDA margin to 44% compared to 41% for the same period last year, supported by a good EBITDA growth of 4% to QAR 9.7 billion for the first nine months of the year.
The continued recovery in Indonesia demonstrates that we have the right strategy in place to deliver growth in the new market environment. Indosat Ooredoo reported significant growth, with revenue up 11% and EBITDA up 37% for the nine-month period.
In Kuwait we are seeing good demand for our offerings with our customer base increasing 13% during 9M 2019, contributing to a 43% increase in EBITDA during the same period.
Ooredoo Tunisia reaffirmed its position as the number 1 telecom player by customer market share and increased revenues by 10% in local currency terms.
Ooredoo Qatar continued to focus upon operational efficiency and innovation through 9M 2019. Revenue stood at QAR 5.4 billion (9M 2018: QAR 5.8 billion) impacted by lower handset sales. EBITDA was QAR 3.0 billion, an increase of 2% year-on-year, enabled by an increasing focus on digitisation and a range of cost optimisation measures, including renegotiating major content deals. Customer numbers stood at 3.2 million.
EBITDA margin sustained its positive trend, rising to 56% (9M 2018: 51%).
Ooredoo Qatar leveraged its sporting heritage and network excellence during the period to provide smart stadium support for the IAAF World Athletics Championships that took place in Doha. The Ooredoo network provided connectivity, speed and reliable voice calling for thousands of visitors, athletes, media and support staff during the event. In addition, the company extended its partnership with Qatari Diar Real Estate Investment Company to provide a full smart city network for the in-development Lusail City.
Innovation helped to enhance the customer experience in the home entertainment and retail fields. The launch of the new Ooredoo ONE ‘All-In-One' Home Service supported the expansion of the customer base for triple play (entertainment, broadband and landline) services during the period. In addition, Ooredoo Qatar premiered a world first with the launch of ‘Virtual Store,’ an online 360-degree retail experience that enabled visitors to browse and buy devices and products in a virtual environment.
In Oman business was driven by a strong performance in the fixed line segment, which helped to deliver stable revenues of QAR 2.0 billion for the nine-month period of 2019. EBITDA increased 3% to QAR 1.1 billion, and EBITDA margin was strong at 56%, up from 54% at 9M 2018.
Ooredoo Oman’s customer base increased 2% to 3.0 million during the nine-month period as compared to 2.9 million in the same period last year. The increase was driven by Ooredoo’s roll out of its Maktabi+ packages, and Ooredoo Oman’s market leading customer experience, as evidenced by the “Best Customer Experience” award won in the Telecom category during Customer Experience Week – Middle East.
Ooredoo Kuwait’s EBITDA margin improved to 31% at 9M 2019, up from 20% for the same period last year, supported by fewer handset sales, better market pricing and a positive IFRS 16 impact. 9M 2019 revenue decreased to QAR 2 billion, compared to QAR 2.2 billion for the same period last year, mainly due to a reduction of handset sales.
Ooredoo Kuwait’s customer base increased to 2.6 million for the nine-month period, up by 13% compared to 9M 2018, driven by a good uptake of our data and voice packages and promotions.
During the period Ooredoo Kuwait launched 5G plans with handset bundles, utilising its 5G network to deliver the highest level of connectivity for its customers in Kuwait.
Asiacell - Iraq
Asiacell reported stable revenues of QAR 3.3 billion for the nine-month period, and a growing customer base, up 6% to 14 million customers at 9M 2019. While EBITDA margin was strong at 45%, EBITDA was down 8% to QAR 1.5 billion at 9M 2019, due to an increase in costs related to improvement in network quality, network expansion, and enhanced sales and marketing activities associated with the increase in customer base and data traffic.
Market conditions in Algeria remain challenging due to economic instability and weak consumer sentiment, compounded by intense price competition from other operators in the market. Currency depreciation was 3% year on year. Ooredoo Algeria reported revenues of QAR 1.9 billion at 9M 2019, compared to QAR 2.1 billion for the same period last year. EBITDA was QAR 663 million at 9M 2019 compared to QAR 801 million for the same period last year.
Ooredoo Algeria’s customer base was 13.4 million at 9M 2019.
Ooredoo Tunisia continues to perform well despite operating in a challenging market environment. 9M 2019 EBITDA increased 10% to QAR 523 million, contributing to an EBITDA margin of 48% (2018: 41%). Growth was supported by the ongoing implementation of Ooredoo Tunisia’s efficiency program and digitisation.
In local currency terms, revenue increased 10% during 9M 2019 compared to the same period last year, supported by a strong performance in data and fixed revenues as well as increasing contributions from digital service revenues. However, in Qatari Riyals revenues decreased 5% to QAR 1.1 billion due to the 15% year on year depreciation of the Tunisian Dinar.
Ooredoo Tunisia’s customer base grew 3% to 9.1 million at 9M 2019, reaffirming its position as the number 1 telecom player by customer market share.
Indosat Ooredoo maintained its growth trajectory reporting an 11% increase in 9M 2019 revenues to QAR 4.8 billion, compared to the same period last year. The sustained growth is testament to the refreshed commercial strategy designed to attract longer term, higher value customers and reduce churn. Customer numbers increased again sequentially by 2 million. EBITDA for the nine-month period grew faster than revenue to reach QAR 2.1 billion, up 37% compared to 9M 2018,and leading to an improved EBITDA margin of 44% at 9M 2019, compared to 36% for the same period last year. Margin improvement was driven by various cost optimisation initiatives.
Ooredoo Myanmar continued to leverage its expertise in digitisation to simultaneously grow its customer base and further drive operational efficiency. Ooredoo Myanmar increased its customer base by 6% to reach 10 million customers at 9M 2019, driven by the company’s strategy to expand its digital distribution network. Simultaneously, the company increased its Ooredoo App monthly active users to 1.3 million, while its VIP digital loyalty program reached 1.6 million users.
EBITDA increased by 30% to QAR 226 million at 9M 2019, with growth supported by a positive IFRS16 impact. Consequently, EBITDA margin improved to 28% during the nine-month period (2018: 17%). Revenues during the period remained under pressure due to aggressive price competition in the market, following the entrance of the fourth operator. Revenue for the first nine months of 2019 was QAR 807 million compared to QAR 1.0 billion for the same period last year, negatively impacted by an 8% depreciation of the Myanmar Kyat.
Ooredoo’s Q3 2019 financial statements will be available on its website, accessible at: http://www.ooredoo.com.
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Ooredoo is an international communications company operating across the Middle East, North Africa and Southeast Asia. Serving consumers and businesses in 10 countries, Ooredoo delivers the leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks.
Ooredoo generated revenues of QAR 30 billion as of 31 December 2018. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.