Ooredoo announced its financial results for full-year 2023 (FY23). Among the financial highlights are the following:
- Revenue saw a 2% increase to QAR 23.2 billion.
- EBITDA rose by 4% to QAR 9.7 billion, with an expanded EBITDA margin of 42%, up by one percentage point.
- Normalized Net Profit surged to QAR 3.3 billion, marking a significant 16% increase.
- CapEx stood at QAR 2.8 billion, maintaining stable CapEx intensity.
- Strong normalized Free Cash Flow (FCF) growth was observed, rising by 6% to QAR 6.8 billion.
- The customer base reached 156.4 million (including IOH).
- Full-year 2023 guidance targets were successfully met.
Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said: “Ooredoo strives to enhance people’s digital lives and deliver value to its stakeholders. In 2023, we continued to provide best-in-class connectivity and deliver superior customer experience by investing in our capabilities and infrastructure.”
It has been noted that Ooredoo’s 2023 growth was driven by solid performances in Iraq, Kuwait, Algeria, and the Maldives.
Notably, Ooredoo Group, Zain Group and TASC Towers Holding jointly announced the creation of the largest tower company in the MENA region, which crystallized the value of Ooredoo’s tower assets.
In terms of data centers, Ooredoo made progress on the carve-out of its data centers to integrate into a new carrier neutral platform. Qatar and Tunisia have been carved out while Kuwait, Oman, and Iraq are expected to be completed in the first half of 2024.
“Our success is facilitated by our ongoing digital transformation, which not only contributes to our resilience but also empowers us to capitalize on market opportunities and position ourselves for long-term sustainable growth. Our adaptability in navigating a dynamic market landscape ensures sustained success and attractive returns,” continued HE Sheikh Faisal.
Opco’s FY23 Highlights
Here’s a quick overview detailing how some of Ooredoo’s operating companies performed in 2023.
Ooredoo Qatar increased its customer base by 2% YoY (excluding the FIFA 2022 connections) to 3 million despite a challenging operating environment (namely, softer economic activity and increased competition in the mobile segment). According to the CTIO, the company has a good fiber network as a base and they have achieved 98% 5G coverage using the latest technologies.
Ooredoo Kuwait delivered a strong result for the year, supported by the drive for operational efficiencies. In a groundbreaking announcement, Ooredoo Kuwait also declared the successful completion of its 5G-Advanced mmWave testing.
Ooredoo Oman’s revenue remained flat at QAR 2,453 million mainly due to lower mobile prepaid, wholesale business and fixed revenues as the competitive environment in Oman intensified in the year. Despite that, the company continues to lead the future of IoT-enabled services with the rollout of NB-IoT technology.
Ooredoo Algeria demonstrated strong performance throughout the year, achieving an 11% YoY increase in revenue to QAR 2,462 million. This growth was fueled by higher data revenue, attributed to increased data usage among customers. In August 2023, Roni Tohme was officially announced as the new CEO.
Ooredoo Tunisia’s customer base grew by 2% YoY to 7.3 million as the company maintained its leadership position within the mobile segment and continued to attract fixed subscribers. Pushing both fiber and fixed wireless solutions, the CTIO the importance of fostering an environment of openness and facilitating the integration of new partners to deliver cutting-edge, innovative services.
In local currency, Indosat Ooredoo Hutchison (IOH’s) operation delivered a solid performance, recording a revenue growth of 10% and an even stronger EBITDA growth of 22%. Celebrating its 56th anniversary in 2023, Indosat’s journey to a techco is built on five pillars: Empowering Indonesia, Marvelous Experience, Innovation Engine, Digital Leadership, and Gotong Royong.
Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo Group said: “2023 was a noteworthy year. We improved our financial position and made substantial progress against our strategic priorities. We delivered financial results in line with our full-year 2023 guidance.”
“As we look ahead, we will continue to drive operational efficiency for profitability and cash generation, while advancing our strategic priorities as we evolve toward becoming the leading digital infrastructure provider in the region,” concluded Fakhroo.
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