October 6, 2022

Ooredoo posts revenue of QR5.5 bn in Q1 2022, pre-FX net profit up 48%

Ooredoo Group on Wednesday announced that its revenue for the first quarter of 2022 stood at QR5.5 billion, a decrease of 23% compared to the same period last year. Excluding Indosat Ooredoo, revenues increased by 4 percent.
Net Profit for the period increased by 241 percent to QR659 million due to improved operational performances across all the Opcos and fewer forex losses in Myanmar. Excluding FX impact net profit increased by 48 percent.
The Group EBITDA for the period was QR2.3 billion, a decrease of 28 percent. Excluding Indosat Ooredoo, EBITDA growth rate was 1 percent.
While CAPEX for the period was QR 372 million, free cash flow was QR2 billion, an increase of 8 percent excluding Indosat Ooredoo.
The consolidated customer base excluding Indosat Ooredoo stood at 55 million, driven by growth in Qatar, Kuwait, Iraq, and Palestine offset by a drop in customer numbers in Myanmar.
In a statement issued on the occasion, the company said, “Due to the merger of Indosat Ooredoo and Hutchinson in Indonesia as of January 4, 2022, the accounting treatment of Ooredoo’s previous largest international operation has been changed. Indosat Ooredoo Hutchison (IOH) Revenue, EBITDA, customers, and Capex are no longer consolidated, as the operation is now classified as a “joint venture company.”
Commenting on the results, Ooredoo Chairman Sheikh Faisal Bin Thani Al Thani said, “Ooredoo Group delivered a healthy set of results during the first quarter of 2022 with revenues of QR 5.5 billion. Despite the ongoing geopolitical instability globally, all Ooredoo Operating companies have been growing revenue in local currency terms.”
On January 4, he said, “We announced the successful completion of the merger between Indosat Ooredoo and 3 Indonesia, resulting in the formation of Indosat Ooredoo Hutchison.”
He said, “Keeping our customers at the forefront, digital transformation and technology are driving forces behind Ooredoo Group’s quick response to changing market conditions. Additionally, we were selected as the Official Global Connectivity Services Provider for FIFA World Cup Qatar 2022, which is a testament to our strong, innovative, and reliable network services that exceed global standards and best practices.”
Commenting on the results, Ooredoo Managing Director and CEO Aziz Aluthman Fakhroo said, “Ooredoo Group delivered a strong set of results for the quarter ended 31 March 2022. Excluding Indosat Ooredoo, revenue and EBITDA increased by 4 percent and 1 percent respectively. We continue to see successful results from our transformation strategy, as demonstrated by our free cash flow of QR2 billion, which excluding Indosat Ooredoo increased by 8 percent. Our home market of Qatar delivered strong results with a revenue increase of 6 percent to QR1.9 billion, and a customer base increase of 6 percent to 3.2 million.”
Ooredoo Kuwait reported a 14 percent increase in revenue to QR693 million, supported by an improved EBITDA margin of 29 percent.
Ooredoo Oman’s EBITDA for the period increased 2 percent to QR321 million.
Ooredoo Algeria and Ooredoo Tunisia both reported top-line revenue growth in local currency terms of 5 percent and 3 percent respectively.
Asiacell extended its 4G coverage to 100 percent of its sites, upgraded the network with enhanced Data speed (4G+) and enhanced network resilience by introducing segmented routing in the transport network, resulting in a customer base increase of 10 percent.
Indosat Ooredoo Hutchison signed several partnerships in the first quarter of the year as it further leverages its position as the number two player in the market, to bring new and innovative products and services to Indonesia.
“We look forward to reporting the further growth of the business in due course,” Fakhroo said
Ooredoo Qatar delivered a strong performance during the period, boosted by Qatar’s increasingly dynamic economy and growing population. Reported revenue grew 6 Fakhroo said to QR1.9 billion (Q1 2021: 1.8 billion) driven by growth in post-paid services, Ooredoo tv and B2B services. EBITDA grew by 2 Fakhroo said to QAR 977 million while EBITDA margin stood at 52 Fakhroo said. Service Revenue grew by 7 Fakhroo said year-on-year. Total customer numbers were 3.2 million, up 6 percent year-on-year (Q1 2021: 3.0 million).
All product lines saw stronger returns compared to the first quarter of 2021. Overall mobile customer base increased by 7 percent year on year, while the Ooredoo tv customer base grew by 8 percent, driven by the popularity of Ooredoo tv’s triple-play service and an expanded range of content providers.
Oman’s economy showed signs of recovery on the back of increasing oil prices coupled with the Omani government’s incentivisation programme for businesses, resulting in Ooredoo Oman’s growth for the first quarter of 2022.
The company reported revenues of QAR 613 million for the period, primarily driven by an increase in wholesale revenue on the back of its national roaming services agreement with a new market entrant, as well as increased device sales. EBITDA for the period increased 2 percent to QR 321 million, supported by a healthy EBITDA margin of 52 percent.
Kuwait continued to lift COVID-19 restrictions which positively impacted Ooredoo Kuwait’s revenue and margins for the first quarter of 2022.
The company reported 14 percent increase in revenue to QR693 million for the quarter of 2022. EBITDA increased 17 percent, supporting an improved EBITDA margin of 29 percent.
The company remains committed to its customers by introducing new and upgraded products to the market.
Asiacell reported revenue of QR 883 million during the first quarter of 2022, an increase of 4 percent, compared to QR852 million in the first quarter of 2021, which was primarily driven by data revenue growth and improving economic conditions. EBITDA increased by 1 percent with a decrease in EBITDA margin of 2 percent points driven by the increased energy cost.
In line with Asiacell’s commitment to providing best-in-class services, the company extended its 4G coverage to 100 percent of its sites, and upgraded the network with enhanced Data speed (4G+) and enhanced network resilience by introducing segmented routing in the transport network. Asiacell’s customer base increased by 10 percent to 16.1 million in the first quarter of 2022, compared to 14.6 million for the same period in 2021.
Ooredoo Algeria reported a robust performance for the first quarter of 2022, driven by its ongoing cost optimisation initiatives. Revenues remained stable at QR546 million, up by 5 percent in local currency terms. EBITDA increased 11 percent to QR208 million.
The customer base increased by 2 percent to 12.9 million compared to 12.7 million for the same period in 2021. During the quarter, Ooredoo Algeria upgraded more of its sites to support 4G, further improving customer experience.
Ooredoo Tunisia reported revenue of QR 380 million, an increase of 3 percent in local currency terms. The Company reported an EBITDA of QR163 million for the first quarter of 2022 in line with the previous year.
As a result of the company’s commitment to expand its digital proposition, Ooredoo Tunisia’s digital channels witnessed a 27 percent increase in usage, in addition to achieving one million monthly active users on the My Ooredoo App for the quarter. Ooredoo Tunisia’s customer base increased by 2 percent and now stands at 7 million.
Ooredoo Myanmar continued to face challenges during the first quarter of the year. In January, the regulator issued a directive to increase tax on data services from 5 percent to 15 percent and a new SIM tax of 20,000Ks ($ 11), resulting in a significant decrease in customer acquisition for the quarter. Additionally, the Myanmar Ministry of Transport and Communications (MoTC) ordered internet services to be shut down in parts of the Sagaing region.
Ooredoo Myanmar delivered revenues of QR272 million, an increase of 8 percent, and a 117 percent growth in EBITDA driven by strong cost savings. In local currency terms, the Company reported a 38% growth in revenue.
Despite the internet shutdown, Ooredoo Myanmar’s digital engagement leads the Company’s overall growth. “Oomanji” was played 87 million times since its launch, and My Ooredoo App contributed significantly to Ooredoo Myanmar’s revenue.
Ooredoo Myanmar’s customer base stood at 9 million, a drop of 33 percent mainly due to higher sim card taxes and the impact of the political situation.