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Ooredoo on Wednesday announced that the Group’s net profit attributable to Ooredoo shareholders decreased by 50 percent year-on-year to QR193 million in the first quarter of 2021 mainly due to foreign exchange (FX) impact coming from Myanmar. Excluding the foreign exchange impact, the company’s net profit increased by 120 percent.
The company’s year-on-year revenue declined 1 percent to QR 7.2 billion in the first quarter of 2021 due to a negative FX impact.
Despite the COVID-19 pandemic excluding FX impact, revenue increased by 1 percent mainly driven by growth in our home market Qatar and in Indonesia.
The company’s EBITDA increased by 6 percent year-on-year to QR3.2 billion in the first quarter of 2021, as the company maintains its focus on digitalisation and cost optimisation. EBITDA margin increased to 45 percent in the first quarter of 2021 from 41 percent in the first quarter of 2020, supported by EBITDA margin expansion in Indonesia, Kuwait, Iraq and Myanmar. Excluding FX impact, EBITDA increased by 9 percent.
Data revenues account for more than 55 percent of total revenue driven by data leadership and digital transformation initiatives across the company’s operations.
Commenting on the results, Ooredoo Chairman Sheikh Faisal bin Thani Al Thani said, “Ooredoo Group delivered a robust set of results during the first quarter of 2021 despite challenging market conditions across many of our territories. We remained focused on our digital transformation agenda which has enabled us to create value for our customers by offering a seamless and convenient user experience as well as optimise our cost base by streamlining and automating processes. Consequently, our EBITDA margin improved to 45 percent in in the first quarter of 2021 compared to 41 percent for the same period last year.”
“We made good progress with our strategy to move to a more efficient and flexible asset-light model with the successful sale and leaseback agreement valued at $750 million for more than 4,200 of our telecom towers in Indonesia to Edge Point Indonesia. Monetising these assets forms an integral part of our group strategy to create value for both our shareholders and customers,” Sheikh Faisal said.
During the quarter, he said, “Ooredoo Group successfully priced its $1 billion bond issuance, reflecting the market’s confidence in the strength and stability of our balance sheet as well as our strategy to deliver new and innovative solutions to our customers by leveraging our world class technology and infrastructure.”
Ooredoo Managing Director Aziz Aluthman Fakhroo said, “I am pleased to report that Ooredoo Group had a solid start to the year, despite challenging market conditions due to the COVID-19 pandemic. Ooredoo Group delivered a 6 percent increase in EBITDA to QR3.2 billion in the first quarter of 2021 compared to the same period last year. The growth was driven by the ongoing implementation of our cost optimisation strategy which includes leveraging technology to drive efficiency.”
Indosat Ooredoo continued to make strong progress with its strategy of offering simple, relevant, and transparent products supporting a 13 percent increase in revenue and a 36 percent increase in EBITDA. Ooredoo Kuwait increased its EBITDA margin to 28 percent in the first quarter of 2021 compared to 25 percent the first quarter of 2020 and Ooredoo Qatar’s revenue increased slightly compared to the first quarter of 2020.
Ooredoo Qatar saw positive growth during the period, with reported revenue growing 0.6 percent year-on-year to QR1.8 billion. EBITDA stood at QR962 million, while EBTIDA margin remained stable at 54 percent. Total customer numbers were 3 million.
Ooredoo Qatar continued to work with a range of content providers to expand the home entertainment options. The Ooredoo ONE ‘All-In-One’ Home Service was a key factor in the growth of the Ooredoo tv customer base, which grew by 1 percent compared to the first quarter of 2020. New products launched during the period include a new customizable app-managed postpaid plan and a revamped version of the Ooredoo Money app.
Ooredoo Oman’s performance was affected by economic conditions, increasing competition in the prepaid segment and the COVID-19 impact. Revenues declined 4 percent to QR610 million in the first quarter of 2021 compared to the previous year, driven by a reduction in prepaid revenue which was partially offset by post-paid revenue gains.
Consequently, EBITDA declined 12 percent to QR314 million during the first quarter of 2021 compared to the same period in the previous year. The company remains committed to managing its overall cost structure.
Ooredoo Oman’s customer base increased by 2 percent of 2.9 million in the first quarter of 2021 compared to the same period in the previous year, as the company prepares to launch 5G mobile services in Q2 2021.
The COVID-19 pandemic contributed to a softening macroeconomic environment in Kuwait, impacting Ooredoo Kuwait’s performance during the period. The company’s revenues declined 8 percent to QR607 million in the first quarter of 2021 compared to the previous year. EBITDA for the period increased 2 percent to QR169 million, compared to the same period in the previous year, supporting an increase in EBITDA margin to 28 percent in the first quarter of 2021.
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29/04/2021
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