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Ooredoo net profit jumps 10% to QR1.7 bn

Ooredoo net profit jumps 10% to QR1.7 bn

Tribune news network
Doha
Ooredoo Group has reported a net profit of QR1.7 billion for 2019, an increase of 10 percent compared to last year, the company announced in a statement on Thursday.
The board of directors has recommended to distribute a cash dividend of QR0.25 per share at the annual general meeting to be held in March. Additionally, the Ooredoo board approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40 percent to 60 percent of normalised earnings.
Ooredoo said the growth was driven by an increase in EBITDA, a more favourable foreign exchange environment compared to 2018, which was partially offset by a negative IFRS16 impact on net profit.
Ooredoo Qatar, Kuwait, Tunisia, Iraq and Indonesia also performed well. Furthermore, Ooredoo Indosat’s profit benefited from the sale of 3,100 towers.
Ooredoo Qatar delivered a steady performance in 2019, building on its global leadership in 5G services to provide an excellent online experience for customers.
Revenue stood at QR7.3 billion, impacted by a fall in handset sales but enhanced by business-to-business growth. Ooredoo Qatar reported stable EBITDA of QR4 billion with an increased EBITDA margin of 54 percent. Customer numbers were 3.3 million by year-end in line with 2018.
The Group revenue was stable at QR29.9 billion, in spite of the industry wide shift from voice to data consumption, a reduction in handset sales as well as macroeconomic and currency weakness in some of our markets.
Group EBITDA for FY 2019 increased by 5 percent year-on-year to QR12.8 billion, with a corresponding EBITDA margin of 43 percent, driven by efficiency programmes in some operating companies and a positive impact from the implementation of the new IFRS 16 accounting standard.
The Group’s customer base was 117 million, up by 2 percent compared to 2018, mainly driven by new customers in Indonesia, Myanmar and Kuwait.
Ooredoo Chairman Sheikh Abdulla bin Mohammed bin Saud al Thani said, “In 2019, we made good progress with the execution of our ambitious digital transformation strategy, transforming our core user experience online and making it easier for our customers to find and use our services.
“We continued to invest in our-state-of-the-art network, as well as introducing and enhancing 5G services in key markets to support the next generation of digital services.
“Testament to the success of our strategy is that more than 50 percent of Group revenues now come from data, which is an important milestone for a telecommunications company that continues to evolve and develop.”
He said, “Our internal change programme is also aligned with our digital transformation strategy, and encompasses every aspect of our operation, from talent management to sales, marketing and customer care, enabling us to further optimise our cost base while ensuring a user experience that enhances the digital lives of our customers.
“Operationally, we are leading the industry through innovation and by offering our customers world class services that complement their digital lifestyles.”
Ooredoo Group CEO Sheikh Saud bin Nasser al Thani said, “Ooredoo Group delivered a strong set of results in 2019, against a backdrop of an evolving telecommunications industry. Our success was driven by the precise execution of our digital transformation strategy, in concert with the culture of innovation which permeates Ooredoo Group. This enabled us to remain agile and meet the changing needs of our customers.
“Group revenue was stable at QR29.9 billion in 2019, in spite of the industry wide shift from voice to data consumption, a reduction in handset sales as well as macroeconomic and currency weakness in some of our markets.
“Throughout the year, we made significant productivity improvements as we digitised our processes and optimised our cost base.”
He said, “Ooredoo Qatar managed to improve EBITDA margins from 52 percent in 2018 to 54 percent in 2019 and demonstrated readiness to support major sporting events with a flawless application of 5G stadium technology during the final round of the FiFA Club World Cup in Doha.
“Our strategy in Indonesia supported a strong recovery in Indosat Ooredoo’s financial performance which delivered revenue growth of 14 percent and EBITDA growth of 47 percent in 2019, compared to the previous year. Our digital distribution strategy in Myanmar was well received by the market and supported an expansion in Ooredoo Myanmar’s user base by 20 percent.
“An optimised product mix and careful cost management contributed to a 31 percent growth in Ooredoo Kuwait’s EBITDA, despite competitive market pressures.”

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