TIDM62AO
RNS Number : 4792Q
Ooredoo Q.P.S.C.
27 October 2021
Ooredoo Q.P.S.C.
Ooredoo Group announced Revenue of QAR 22 billion for 9M
2021
EBITDA increased 7% to QAR 10 billion
Doha, Qatar, 27 October 2021: Ooredoo Q.P.S.C. ("Ooredoo") -
Ticker: ORDS today announced results for the nine months ended 30
September 2021.
Financial Highlights:
Quarterly Analysis 9M Analysis
------------------------------------ -------------------------- -----------------------------
Q3 2021 Q3 2020 % Change 9M 2021 9M 2020 % Change
------------------------------------ ------- ------- -------- -------- -------- ---------
Consolidated Revenue (QAR m) 7,609 7,296 4% 22,118 21,414 3%
------------------------------------ ------- ------- -------- -------- -------- ---------
EBITDA (QAR m) 3,463 3,252 6% 9,904 9,248 7%
------------------------------------ ------- ------- -------- -------- -------- ---------
EBITDA Margin (%) 46% 45% - 45% 43% -
------------------------------------ ------- ------- -------- -------- -------- ---------
Net Profit/ Loss Attributable
to Ooredoo Shareholders (QAR
m) 197 650 - 70% -760 1,468 n/a
------------------------------------ ------- ------- -------- -------- -------- ---------
Normalized NP (excl. FX, tower
sales and impairment) (QAR m) 650 508 28% 1,580 1,119 41%
------------------------------------ ------- ------- -------- -------- -------- ---------
Customers in million (consolidated) 121 119 2% 121 119 2%
------- ------- -------- -------- -------- ---------
-- Revenue for the nine months ended 30 September 2021 stood at
QAR 22.1 billion, an increase of 3% compared to the same period
last year. Mainly driven by growth in our home market Qatar,
Indonesia, and Tunisia. Excluding FX impact, revenue increased by
6%.
-- Group EBITDA for the nine-month period was QAR 9.9 billion
with a corresponding EBITDA margin of 45%, driven by growth in
Indonesia, Kuwait and Algeria. The EBITDA growth rate stood at 7%
and at 10% excluding FX impact.
-- Consolidated customer base increased by 2% to exceed 120
million due to strong performances in Indonesia, Oman, Algeria, and
Iraq .
-- Group Net Profit attributable to shareholders turned negative
mainly due to FX losses and the impairments in Myanmar. The
negative impact was partly offset by profit from the sale and
leaseback of Indosat Ooredoo's tower assets (QAR 1,000 million) and
reversals of COVID-19 FX provision. Excluding these one-offs and FX
impact, Net Profit increased by 41%.
Operational highlights:
-- On September 16, Ooredoo Group and CK Hutchison announced the
signing of definitive transaction agreements for the proposed
merger of their respective telecommunications businesses in
Indonesia. The merged entity, to be named Indosat Ooredoo
Hutchison, is set to become a stronger number two telco operator in
the market.
-- On September 30, Ooredoo Group announced title sponsorship of
Qatar's first-ever Formula 1 race, officially named the 'Formula 1
Ooredoo Qatar Grand Prix'.
-- On July 26, Ooredoo Group announced a partnership with Quest,
the first and largest Qatari company specializing in eSports to
launch its own eSports brand, Ooredoo Nation - Gamers' Land. As
part of the agreement, Ooredoo will be launching a series of
products, services and initiatives specifically geared towards the
gaming audience.
-- Post quarter, on October 25, Ooredoo won two awards: "
Leading Corporate for Investor Relations", and "Best Investor
Relations Professional" in Qatar at the 2021 Middle East Investor
Relations Association ("MEIRA") Annual Conference
Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani,
Chairman of Ooredoo, said:
"We reported solid results for the nine months ended 30
September 2021, driven by the ongoing implementation of our digital
strategy and cost optimisation programme. Revenues increased by 3%,
and our EBITDA margin improved to 45%, up from 43% from 9M 2020,
despite the challenges presented to us due to COVID-19.
As a leader in the industry, we strive to provide reliable
connectivity and innovative products to our customers, which has,
in turn, resulted in increased customer confidence in the business
and an increase in our customer base by an additional two
percent."
Also commenting on the results, Aziz Aluthman Fakhroo , Managing
Director of Ooredoo said:
"We are pleased to report the ongoing positive trend in the
business as market activity improves in some of our core markets.
This trend is even stronger excluding the FX impact with revenue
growth of 6% and EBITDA growth of 10%.
Our Net Profit was impacted mainly due to FX losses and the
impairment of our operations in Myanmar, due to the continued
political unrest. The negative impact was partially offset by the
gain realized on Indonesian tower sale and leaseback transaction.
Excluding these one-offs and the FX impact, the Net Profit
increased by 41%.
Our home market Qatar continues to deliver strong results with
growth in revenue of 3% and a strong EBITDA margin of 54%.
Our cost control measures resulted in an improved EBITDA for
Ooredoo Kuwait and Ooredoo Algeria.
Ooredoo Tunisia recorded an 8% increase in revenue for the
nine-month period.
Ooredoo Oman's customer base increased by 6% and Asiacell
recorded 7% more customers.
Finally, Indosat Ooredoo continues to deliver a strong set of
results across the board, contributing significantly towards Group
growth, with a 14% increase in revenue and an improved EBITDA
margin of 50%. We expect to see significant growth following the
proposed merger of Indosat Ooredoo and CK Hutchison which was
announced in September. The merger will lead to the creation of a
stronger number two telco operator in the Indonesian market and a
new world-class digital telecoms and internet company for
Indonesia. As a digital powerhouse, Indosat Ooredoo Hutchison will
generate greater value for customers, shareholders, as well as the
country, backed by its two strong and experienced holding
companies, who will retain joint control of the merged entity and
support its future growth
We remain optimistic about the growth of the business and look
forward to continuing to deliver long-term value to all our key
stakeholders."
Operational Review
Middle East
Ooredoo Qatar
Ooredoo Qatar saw growth during the period. Reported revenue was
up 3% year-on-year to QAR 5.4 billion (9M 2020: QAR 5.3 billion),
driven by growth in post-paid services, business-to-business
revenue, sales of Ooredoo TV, mobile financial services (MFS) and
increased sales of devices. EBITDA reached QAR 2.9 billion with
EBITDA margin at 54% in line with the previous year. Total
customers were 3.1 million.
On July 26, Ooredoo Group announced a partnership with Quest,
the first and largest Qatari company specializing in eSports to
launch its own eSports brand, Ooredoo Nation - Gamers' Land. As
part of the agreement, Ooredoo will be launching a series of
products, services and initiatives specifically geared towards the
gaming audience
The company continuously aims to be the provider of choice for
ICT services and content within Qatar. In the B2B space, it
launched the new Aamali service on the My Ooredoo Business Portal,
enabling small businesses to customise voice, data, and
international calling allowances in a bespoke package. In addition,
Ooredoo Qatar upgraded its Business Broadband portfolio and
continued to transform and digitalise fixed-line corporate
services. Ooredoo Qatar was recognised as Microsoft's 'Qatar
Partner of the Year' and by Moneygram as 'Partner of the
decade'.
Ooredoo Qatar's focus on digitisation delivered significant cost
savings, with more customers migrating to online self-care and
self-service. Major sponsorships announced during the period
include title sponsorship of Qatar's first-ever Formula 1 race,
which will be officially named the Formula 1 Ooredoo Qatar Grand
Prix, and a one-year renewal of the Ooredoo Cup.
Ooredoo Oman
Ooredoo Oman reported a decrease of 8% in revenue due to lower
revenue in consumer mobile prepaid, increased competition in the
market, as well as a slow recovering economy. EBITDA decreased by
12% to QAR 903 million, and EBITDA margin was 52%, down from 54%
for the nine-month period in 2020.
Ooredoo Oman's customer base increased to 2.8 million in the
nine months ended 30 September 2021, compared to 2.6 million in the
same period last year.
5G continues to perform exceedingly well in Oman driven by the
continuous roll-out of 5G network with over 580 sites in total as
of end September.
In October, Northern Oman was hit by the devastating Tropical
Cyclone 'Shaheen', impacting 417 of Ooredoo Oman's sites which
recovered fully within seven days.
Ooredoo Kuwait
The COVID-19 pandemic and a decline in Kuwait's population
continued to put pressure on Ooredoo Kuwait's performance during
2021. However, with the gradual ease of travel restrictions,
supported by the stabilisation of oil prices, Kuwait's population
has witnessed a slight uptick. With this, the company reported a
slight increase in revenue of QAR 1.9 billion for the nine months
ended 30 September 2021. EBITDA increased 16%, supporting an
improved EBITDA margin of 30%, up from 26% compared to the same
period last year.
Ooredoo Kuwait's 5G rollout increased further during the
period.
Ooredoo Kuwait's continued commitment to its customers through
providing world-class services was recognised by the Stevie
International Business Awards where the Company was awarded a Gold
Stevie in the 'Mobile On-Demand Application' category for the My
Ooredoo App, as well as a Bronze Stevie for Ooredoo Kuwait's
volunteer program in the 'Corporate Social Responsibility Program
of the Year' category.
Ooredoo Kuwait won the "fastest mobile network in Kuwait" in the
Speedtest awards 2021 by a leading independent technology research
company.
Asiacell - Iraq
Asiacell reported revenue of QAR 2.8 billion during 9M 2021, a
decrease of 8% mainly due to the devaluation of the Iraqi Dinar by
20%. In local currency terms, the revenue was up 12% and EBITDA
increased by 16% supporting an EBITDA margin of 46% driven by
ongoing cost optimisation initiatives.
During the quarter, Asiacell focused heavily on improving the
customer experience by extending its 4G coverage and optimising the
network, resulting in Asiacell's position as the number one mobile
data network provider in Iraq. Furthermore, the Company increased
its LTE enabled sites in the network with a significantly improved
4G data speed resulting in customers shifting from 3G to 4G during
the period.
Asiacell's customer base increased by 7% to 15.2 million for the
nine months ended 30 September 2021, compared to 14.2 million for
the same period in 2020.
North Africa
Ooredoo Algeria
Economic activity in Algeria is showing signs of a slow
recovery, despite the continued depreciation of the Algerian Dinar,
(-9% yoy). Ooredoo Algeria's EBITDA increased by 6% for the nine
months ended 30 September 2021. The company's focus on efficiency
and cost optimisation supported a healthy EBITDA margin of 36%.
While revenues stood flat at QAR 1.7 billion, in local currency
terms revenue increased by 8%.
Ooredoo Algeria's "Yooz" continued to be a priority as the
Company rolled out the new, optimised version of the app,
reinforcing Ooredoo Algeria's position in the market and boosting
growth across direct and indirect channels. Yooz is a digital
prepaid offer targeting Algerian youth to help them personalise
their own data plans virtually and access exclusive digital
content. Customer number increased by 3% to reach 12.7 million.
Ooredoo Algeria's network site availability stood very high
despite extensive forest wildfires, and 4G network rollout
continued to increase during the period. Ooredoo Algeria launched
an initiative to support areas impacted by the forest fires.
Ooredoo Tunisia
Ooredoo Tunisia delivered robust results despite an increase in
the number of COVID-19 cases, with revenue of QAR 1.2 billion for
the nine months ended 30 September 2021, an increase of 8% compared
to the same period last year.
Ooredoo Tunisia reported an EBITDA of QAR 511 million, up 3%
compared to the same period last year. The company remains focused
on the implementation of its value creation plan which includes
expanding its digital proposition and streamlining its operations
through the digitisation of its sales and distribution
channels.
Ooredoo Tunisia changed the reporting methodology of its prepaid
customer's base from the original life-cycle definition to the 90
days network activity definition to align with a common methodology
across mobile operators within the country. Ooredoo Tunisia's
customer base now stands at 7.2 million.
Asia
Indosat Ooredoo
Indosat Ooredoo continues to deliver strong growth, reporting a
14% increase in revenue to QAR 5.9 billion for the nine months
ended 30 September 2021. EBITDA increased by 23% to QAR 2.9 billion
mainly driven by solid top line growth and cost optimisation.
Indosat Ooredoo's relentless focus on customer experience and on
offering innovative products led to an increase in the Company's
customer base by 3%.
Furthermore, the Company is well ahead of its network roll-out
and capacity expansion plans and has successfully launched
commercial 5G services in Surabaya. This launch is a continuation
of the 5G revolution in Indonesia, following the commercial launch
of the 5G service in Solo and Jakarta.
Indosat Ooredoo Hutchison (IOH)
In September, Ooredoo and CK Hutchison announced the proposed
merger of Indosat Ooredoo and Hutchison 3 Indonesia ("H3I"). The
merged entity, to be named Indosat Ooredoo Hutchison, will
strengthen its position as number two telco operator in the market
and build on the complementary strengths of both companies.
IOH will have sufficient size and scale, whilst providing a
level playing field in a highly fragmented market, which will
improve margins and be credit positive for the both the company and
the sector.
The transaction has a combined pre-synergy implied enterprise
value of approximately USD 6.0 billion. Annual run rate pre-tax
synergies of approximately USD 300-400 million are expected to be
realized over 3-5 years, mainly from decommissioning 25-30% of the
combined sites.
Indosat Ooredoo Hutchison will remain listed on the Indonesian
Stock Exchange and will be jointly controlled by the Ooredoo Group
and CK Hutchison via Ooredoo Hutchison Asia - both financially
strong shareholders committed to driving growth in the Indonesian
telecoms industry.
The Indosat Ooredoo Board will consider declaring interim and
final dividends to all current shareholders based on the proceeds
from the tower sale in May 2021 (total deal consideration USD750
million). Ooredoo Group will receive its share of the dividends
based on its current 65% shareholding, net of expected deductions
for withholding taxes.
Indosat Ooredoo shareholders who choose to dissent can be bought
out at IDR 5,247 per share, the valuation of Indosat Ooredoo as per
the IFA which is net of the expected dividend. Ooredoo expects that
this merger will create significant value going forward for all
shareholders who remain invested in the business.
Ooredoo Myanmar
Authorities in Myanmar proclaimed a one-year State of Emergency
in February 2021, which significantly impacted Ooredoo Myanmar's
revenues. Furthermore, the Myanmar Ministry of Transport and
Communications (MoTC) instructed operators to shut down all telco
services in certain townships, placing further pressure on the
Company's operations. Subsequently Ooredoo Myanmar reported an 8%
decline in revenue to QAR 799 million impacted by FX depreciation .
For the nine months ended 30 September 2021, the Company reported a
24% increase in EBITDA to QAR 244 million, partly assisted by lower
cost of sales.
The Company launched a new game "Oomanji" on the My Ooredoo App
which has been played over 25 million times since its launch,
contributing to the ' My Ooredoo App' revenue. Furthermore, Ooredoo
Myanmar continued to focus on its digitisation efforts with the
launch of two more versions of the 'My Ooredoo App' that now
includes a wallet feature, consolidating the GSM and mobile money
business.
Ooredoo's Q3 2021 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 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 29 billion as of 31 December
2020. Its shares are listed on the Qatar Stock Exchange and the Abu
Dhabi Securities Exchange.
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