Ooredoo Group announced a strong set of financial results despite macroeconomic weakness in some of their markets. The Doha-based company said its net profit increased by 16%to QAR 1.47 billion in the first nine months to 30 September from QAR 1.26 billion in the same period in 2019 in a more favorable foreign exchange environment.
Revenue declined by 3 percent year-on-year to QAR 21.41 billion from QAR 21.96 billion because of COVID-19, with a reduction in handset sales and roaming business. This was partially offset by growth in Indonesia.
Commenting on the results, Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said: “Ooredoo Group has been fortunate to have a well-diversified business – across geography and customer composition – in addition to a strong balance sheet, which has helped us maintain resilience during these challenging times.”
Data revenues accounted for more than 50% of total revenue, supported by data leadership and digital transformation initiatives in the countries where Ooredoo operates. EBITDA declined by 4 percent year-on-year to QAR 9.2 billion from QAR 9.66 billion in 2019, hit by lower revenues and higher cost of sale as well as challenging market conditions in Algeria, Kuwait, Iraq and Oman.
The company maintains its focus on digitalization and cost optimization, which is reflected in the EBITDA margin of 43 percent, compared with 44 percent in 2019.
Ooredoo Qatar revenue reached QAR 5.3 billion in the first nine months to 30 September compared with QAR 5.4 billion in the same period of 2019. EBITDA stood at QAR 2.9 billion compared with QAR 3.0 billion in 2019. The customer base rose by 2.7 percent year on year to 3.3 million, with mobile customers growing by 3.2 percent, and the postpaid customer base up by 2.8 percent. The EBITDA margin sustained its positive trend at 55 percent compared with 56 percent in 2019.
Lockdowns and movement restrictions also impacted Ooredoo Oman’s results for the period. Revenues declined 5% to QAR 1.9 billion compared to the same period last year, due to a reduction in mobile revenues. Consequently, EBITDA for the period declined 9% to QAR 1.0 billion compared to the same period last year.
Ooredoo Kuwait group revenues decreased by 6 percent to KWD 155.4 million for the first nine months to 30 September from KWD 169.7 million in the same period of 2019. EBITDA dropped by 13 percent to KWD 40.6 million from KWD 53.1 million for the same period in 2019. Net profit decreased by 75 percent to KWD 5.9 million from KWD 23.5 million in 2019, due to the decline in EBITDA.
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