TIDM62AO
RNS Number : 3955L
Ooredoo Q.P.S.C.
29 April 2020
Ooredoo Q.P.S.C.
Ooredoo Group announced increased Revenue of QAR 7.3 billion in
Q1 2020
Net Profit of QAR 387 million
---
Doha, Qatar, 29 April 2020: Ooredoo Q.P.S.C. ("Ooredoo") -
Ticker: ORDS today announced its financial results for the quarter
ended 31 March 2020.
Financial Highlights:
-- Quarterly Analysis
------------------------------------ --------------------------
Q1 2020 Q1 2019 % Change
------------------------------------ ------- ------- --------
Consolidated Revenue (QAR m) 7,295 7,192 1%
------------------------------------ ------- ------- --------
EBITDA (QAR m) 3,023 3,173 -5%
------------------------------------ ------- ------- --------
EBITDA Margin (%) 41% 44% -
------------------------------------ ------- ------- --------
Net Profit Attributable to Ooredoo
Shareholders (QAR m) 387 420 -8%
------------------------------------ ------- ------- --------
Customers in million (consolidated) 118 112 6%
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-- Revenue growth of 1% year-on-year to QAR 7.3 billion
supported by robust growth in Indonesia, Tunisia, Myanmar and other
markets, which was partially offset by a COVID-19 impact, a
reduction in handset sales and macroeconomic weakness in some of
our other markets.
-- EBITDA declined by 5% year-on-year to QAR 3.0 billion,
impacted by measures to contain the spread of COVID-19 in many
territories as well as challenging market conditions in Algeria,
Kuwait and Oman.
-- Group Net Profit attributable to Ooredoo shareholders
declined by 8% to QAR 387 million in Q1 2020, compared to the same
period last year, due to the reduction in EBITDA which was
partially offset by a more favorable Foreign Exchange environment
compared to the same period last year.
-- Data revenues accounts for more than 50% of total Revenue
driven by our data leadership and digital transformation
initiatives across the countries we operate in.
-- Ooredoo Group has healthy cash reserve and liquidity levels
to be able to absorb the impact of COVID-19 for the year 2020. As
the COVID-19 lockdowns continues, it is expected to result in
economic weakness in most of our markets with a corresponding
impact on the performance of our operations.
Operational highlights:
-- Ooredoo Group has changed its leadership team with the
appointment of Sheikh Faisal Bin Thani Al Thani as Chairman of the
Board of Directors of Ooredoo Group on 5 March 2020.
-- Sheikh Mohammed Bin Abdulla Al Thani was appointed as Deputy
Group Chief Executive Officer and Acting Chief Executive Officer of
Ooredoo Qatar on 8 March 2020. Sheikh Mohammed has held various
management positions within Ooredoo since he joined the company in
2009, and most recently, he was Chief Executive Officer of Ooredoo
Kuwait.
-- Mr. Fadi Kawar was appointed as Acting Chief Executive
Officer of Ooredoo Kuwait on 8 March 2020 and Mr. Bassam Yousef Al
Ibrahim was appointed as Deputy General Manager of Ooredoo Algeria
on 1 March 2020.
-- Ooredoo Qatar deployed Ericsson Spectrum Sharing sites which
enable the running of 4G and 5G traffic simultaneously on the same
frequency band and radio hardware, facilitating an efficient,
flexible and smooth evolution towards nationwide 5G coverage.
-- Ooredoo Myanmar upgraded the country's most advanced 4G
network which used the 900 MHz band and reached the vast majority
of Myanmar's population.
COVID-19 Initiatives and Highlights
-- Implemented various initiatives to protect the health and
wellbeing of employees and customers by adopting a work from home
policy for non-frontline staff, enhanced sanitization of premises
and mandatory use of PPE including masks.
-- Launched several initiatives to support communities during
the COVID-19 epidemic. Ooredoo Algeria teamed up with the Red
Crescent to distribute hygiene kits and sanitize public spaces;
Ooredoo Tunisia launched new nightly data bundles and free mobicash
cards while Ooredoo Kuwait offered frontlines workers in the
ministries and governmental organizations free internet access.
Ooredoo Qatar offered free bandwidth upgrades for educational
customers and 100GB of data for frontline workers.
-- Transitioned marketing strategy from physical outdoor
advertising to target digital advertising; increased adoption of
digital channels such as the "My Ooredoo" app and increased home
product deliveries.
-- Ensured network readiness for increased fixed line and data
usage, and increased monitoring to adequately re-distribute network
traffic as work transitioned from business areas to residential
areas.
Commenting on the results, -Sheikh Faisal Bin Thani Al Thani,
Chairman of Ooredoo, said:
"Ooredoo Group delivered a healthy set of results for the start
of the year, reporting a 1% increase in revenues to QAR 7.3 billion
in Q1 2020 compared to the same period last year.
The world is going through an unprecedented challenge as we all
come together to tackle the COVID-19 pandemic. While the telecom
sector is defensive and more resilient than others, we do expect to
see some negative impact on our operations, similar to other global
telecom operators. However, Ooredoo Group has a strong balance
sheet, a well-diversified portfolio geographically and a
diversified customer mix across prepaid, postpaid and enterprise,
all of which will help us navigate these challenging times.
The investments we have made and continue to make in our digital
transformation have ensured our business continuity and enabled us
to provide essential services and uninterrupted connectivity for
our customers during these uncertain times. During the period we
upgraded our 4G network in Myanmar to the most advanced level in
the country and in our home market of Qatar we took another step
towards nationwide 5G coverage by deploying Spectrum Sharing sites
which enables the running of 4G and 5G traffic simultaneously on
the same frequency.
At Ooredoo our key priorities are clear: the health and safety
of our employees and customers, as well as the continued provision
of uninterrupted and high-quality services for our consumer and
business customers. Now more than ever, it is imperative that we
adhere to our vision of "Enriching people's digital lives" as our
networks play a vital role in connecting communities and empowering
businesses. Across all our operations, we have optimised network
capacity and have managed the flow of data traffic from business
centres to residential areas to ensure uninterrupted and high-speed
connectivity for all our customers.
For our office employees, we have adopted work from home
policies, and for our frontline workers we have implemented strict
health and safety measures which are in line with directives
received from government and health authorities. Many of the
communities in the territories that we operate in have been
severely impacted by the pandemic. Across all our operations, we
have launched several initiatives to ease the burden on the groups
impacted the most, by offering free data packages, making
donations, and contributing to raising awareness of prevention
measures. "
Also commenting on the results, Sheikh Saud bin Nasser Al Thani
, Group Chief Executive Officer of Ooredoo said:
" In Q1 2020 Ooredoo Group has increased our revenue and we have
delivered good results Growth was driven by strong performances in
most of our markets, and in particular in Indonesia and Tunisia
where revenues grew 7% and 16% respectively, supported by Indosat
Ooredoo's refreshed strategy and the implementation of Ooredoo
Tunisia's value creation plan. Business in Myanmar has been growing
as well. Ooredoo Qatar continues to be our highest revenue
generator, reporting QAR 1.8 billion in total revenues for Q1
2020.
The implementation of nationwide lockdowns across many of our
geographies impacted EBITDA as margins came under pressure due to
changing customer behaviour. EBITDA for Q1 2020 was QAR 3.0 billion
compared to QAR 3.2 billion for the same period last year. We
continue to implement strong cost optimisation programmes across
all our OpCos to manage some of the impact from the pandemic and
weakening economic activity.
Our leading digital infrastructure and focus on customer
experience enabled us to grow our user base by 6% during the first
quarter of 2020 compared to the same period last year. Our digital
platforms and home deliveries enabled our customers to avail our
services and manage their accounts from the safety of their homes.
In Oman, we continued to deliver double digit growth in fixed
revenues, in Iraq, we increased our customer base, while in Tunisia
we maintained our number 1 position by customer market share."
Operational Review
Middle East
Ooredoo Qatar
Ooredoo Qatar reported stable Revenue of QAR 1.8 billion (Q1
2019: QAR 1.8 billion). EBITDA stood at QAR 966 million (Q1 2019:
QAR 1,037 million). Customer numbers stood at 3.3 million. The
company saw an increase in digital sales and digital service
revenue during the period.
Network innovation continued to be a priority. Ooredoo Qatar's
content and entertainment services saw good growth, with a growing
customer base for Ooredoo tv. The company also continued to drive
5G progress with more than 100,000 customers signing up to the new
Shahry 5G and Qatarna 5G plans.
Towards the end of the period, Ooredoo Qatar saw some business
impact from the COVID-19 outbreak, particularly on B2B revenue. The
company launched the #StayHomeWithOoredoo campaign, which included
dedicated offers and services for customers, and increased
bandwidth allowance for school and university customers for free,
to support distance learning.
Ooredoo Oman
The company's revenues for the first quarter of 2020 were QAR
638 million, down by almost 2% compared to QAR 650 million reported
in Q1 2019. Revenue reduction was partially offset by fixed line
revenues, which continued to deliver double digit growth for the
first quarter of the year.
EBITDA for Q1 2020 was QAR 356 million with a strong EBITDA
margin of 56%, supported by cost management initiatives across the
business including renegotiation of various contracts, which
partially offset some of the declines in revenues during the
period. For the first quarter of the year, 15% of total revenues
was spent in capex, which was mainly used for network upgrades and
maintenance, as well as IT transformation initiatives, and in line
with the company's digitalization strategy.
Ooredoo Oman has planned multiple initiatives to support the
local community and its customers during this time including
supporting front line and medical staff, conducting educational
campaigns and supporting local businesses.
Ooredoo Kuwait
The company's revenues in Q1 2020 were QAR 656 million compared
to QAR 673 million in Q1 2019 in a competitive environment.
Furthermore the COVID-19 lockdown added pressure on the economy and
correspondingly impacted the performance of Ooredoo Kuwait. Going
forward, the company will continue to optimize costs to manage the
pressure on revenues as the COVID-19 situation continues to
develop, parallel to a low pricing and economic slowdown
environment.
Despite a difficult operating environment, the company continued
to focus on its digital strategy and successfully converted more of
its existing users to 5G plans to take advantage of the superior
connectivity that the technology offers. Ooredoo Kuwait's digital
technology enabled it to seamlessly serve its customer base of 2.5
million in Q1 2020 through the My Ooredoo app and other digital
channels. Simultaneously, the company continued to fulfil home
deliveries of products and SIM cards for customers across the
country.
Ooredoo Kuwait offered all workers in the ministries and
governmental organizations 5GB of free data a day and unlimited
local calls, in support of their efforts to contain the spread of
COVID-19.
Asiacell - Iraq
Asiacell reported revenue growth to QAR 1.09 billion in Q1 2020,
up from QAR 1.07 billion in Q1 2019. The company maintained a
healthy EBITDA margin of 44% in Q1 2020, while EBITDA grew to QAR
473 million, marginally up from QAR 471 million reported for the
same period last year.
Asiacell's customer base increased by 5% to reach almost 15
million customers at the end of Q1 2020 as the company supported
the government's calls to stay at home by delivering SIMs &
scratch cards to customers' doors through mobile buses. Customers
also benefited from extended payment plans during the period to
help ease the burden on their personal finances.
The company continued to support communities across Iraq by
donating to the Iraqi government and to the government of the
Kurdistan Autonomous Region to manage the current crisis as well as
extending an education campaign across its social media channels
and through recorded call announcements encouraging citizens and
residents to stay at home.
North Africa
Ooredoo Algeria
Ooredoo Algeria reported revenues of QAR 594 million in Q1 2020,
down 8% over Q1 2019 driven by a challenging economic environment
and significant declines in the month of March as measures taken to
curtail the spread of COVID-19 came into effect. Consequently,
EBITDA declined 23% to QAR 200 million in Q1 2020 compared to the
same period last year, and the company has taken steps to optimise
its expenses, particularly across its marketing and advertising
spend.
Ooredoo Algeria launched several initiatives during the quarter
to support its customer base of 12.3 million during the lockdown.
To sustain the increase in data traffic, Ooredoo Algeria increased
transmission capacity across all 48 Wilayas.
In addition, several initiatives were implemented to support
communities across the country. These included the use of Ooredoo's
digital platforms to raise awareness on COVID-19 prevention in
addition to the deployment of its e-learning platforms to support
the ongoing education of students during the crisis. Ooredoo
Algeria also teamed up with the Red Crescent to distribute hygiene
kits and help sanitise public spaces.
Ooredoo Tunisia
Ooredoo Tunisia had a strong quarter, with growth across the
board, despite challenging circumstances as the economy contracted
following measures taken to stem the spread of COVID-19. Revenues
grew 16% to QAR 382 million during the first quarter of 2020
compared to the same period last year, driven by a good performance
of the B2B, Fixed and Data segments. The company continued to
leverage its 4G network to drive data usage.
Careful cost optimisation initiatives have been implemented
across the board, including migration to digital marketing, to
partly mitigate some of the declines in revenue that are expected
as the economy slows. Consequently, EBITDA for Q1 2020 increased by
18% to QAR 168 million compared to the same period last year
supporting EBITDA margin improvement to a healthy level of 44% for
Q1 2020.
Ooredoo Tunisia's customer base remained stable at 9 million
customers in Q1 2020, reaffirming its position as the number one
telecom player by customer market share. Supporting its customers
during these challenging times, Ooredoo Tunisia launched new
nightly data bundles and free mobicash cards.
Asia
Indosat Ooredoo
Indosat Ooredoo maintained its growth trajectory from 2019
reporting a 7% increase in revenues to QAR 1.7 billion in Q1 2020
compared to the same period last year, mainly driven by higher ARPU
due to a significant increase in data traffic. Strict cost
management contributed to EBITDA growth of 9% to QAR 700 million
during the first quarter of 2020 compared to the same period last
year as the company reorganised operations to achieve greater
efficiency. EBITDA margin increased to 42% for the same period, up
from 41% in Q1 2019.
Indosat Ooredoo's customer base grew by 5% to 56 million,
compared to the same period last year, as the company continued to
offer transparent and flexible solutions to its customers powered
by its leading physical and digital infrastructure.
Indosat Ooredoo continues to implement a careful cost management
program to mitigate some of the expected revenue declines as people
and businesses across Indonesia are impacted by the COVID-19
pandemic. The company has also taken steps to ensure network
readiness for the anticipated surge in fixed line and data
usage.
Ooredoo Myanmar
Ooredoo Myanmar continued to focus on its digital transformation
strategy with the deployment of Myanmar's most advanced 4G network.
As 4G adoption continues to grow, Ooredoo Myanmar's 4G LTE Turbo,
which uses the 900 MHz band and reaches the vast majority of
Myanmar's population, supported a 43% increase in the company's
customer base to 15.6 million in Q1 2020, representing a record in
customer additions for the quarter.
Ooredoo Myanmar reported revenues of QAR 284 million for the
first quarter of 2020 up 9% compared to the same period last year,
driven by strong growth in data consumption during the period.
Increased customer acquisition costs contributed to a compression
of margins causing a decline in EBITDA to QAR 50 million compared
to QAR 59 million in Q1 2019.
The company's 3G and 4G networks are ranked number one for speed
in the country while the "My Ooredoo" app continued to attract more
customers demonstrating, strong demand for Ooredoo Myanmar's
digital offering.
Ooredoo's Q1 2020 financial statements will be available on its
website, accessible at: http://www.ooredoo.com .
For further information:
Email: IR@ooredoo.com
Follow us on Twitter: @OoredooIR
- Ends -
About Ooredoo
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
2019. Its shares are listed on the Qatar Stock Exchange and the Abu
Dhabi Securities Exchange.
This information is provided by RNS, the news service of the
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END
DOCSEDFAUESSEFL
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