Tribune News Network
Doha
Ooredoo on Tuesday announced that the company registered normalised net profit of QR1.9 billion in the first half of 2024, up by 14 percent compared to QR1.6 billion in the same period last year.
Normalised net profit is adjusted for foreign exchange, impairments, and exceptional items.
The disposal of Ooredoo Myanmar operation was completed on May 31, 2024, and Ooredoo Group financial results for H1 2024 include results for Ooredoo Myanmar until May 31, 2024.
Reported net profit reached QR1.9 billion compared to QR1.8 billion in H1 2023, up by 4 percent YoY.
Revenue for the Group increased by 3 percent YoY to QR11.8 billion compared to QR11.4 billion in H1 2023, underpinned by the solid operational performance and continued commercial momentum in Iraq, Algeria, Kuwait, Tunisia and the Maldives. This was partially offset by lower revenues in Qatar and Oman.
EBITDA increased by 6 percent YoY to QR5.1 billion. EBITDA margin improved in the first half of the year by 1pp to reach 43 percent.
Iraq, Algeria, Qatar, Tunisia and Maldives contributed to the Group’s improved profitability. Capex spend increased by 16 percent YoY to QR1 billion. This increase was driven by a ramp-up of investment in Algeria, Iraq, Qatar, Tunisia and Kuwait.
Free cash flow continued to demonstrate healthy growth thanks to the strong EBITDA performance.
Normalised free cash flow increased by 6 percent to QR4.1 billion, with increased contributions from Iraq, Qatar, Algeria, Tunisia and Maldives.
Ooredoo Group maintained a robust financial and liquidity position while preserving an investment-grade rating. As of June 30, 2024, the group’s net-debt-to-EBITDA ratio stood at 0.6x, below the board’s guidance of 1.5x to 2.5x.
The group’s financial position remains secure against interest rate risks as approximately 97 percent of the debt is structured on a fixed-rate basis. Liquidity remains strong with QR11 billion in cash reserves (net of restricted cash) and QR5.2 billion available in undrawn facilities.
The Group’s customer base decreased by 12 percent YoY (increased by 4 percent YoY excluding Ooredoo Myanmar) to 49.7 million customers forH1 2024.
Including IOH, the customer base reached a total of 150.6 million, up by 2 percent (excluding Myanmar).
Ooredoo Group is making steady progress towards achieving its FY 2024 targets. Revenue is expected to remain stable with an EBITDA margin in the low 40s percent range. Additionally, full-year CAPEX is expected to reach approximately QR3.5 billion as spend ramps up in the second half of the year.
Commenting on the results, Ooredoo Chairman Sheikh Faisal Bin Thani Al Thani said, “Ooredoo Group delivered a solid set of results for the first half of 2024. Revenue grew by 3 percent to QR11.8 billion with a noteworthy increase in normalized net profit of 14 percent. The sustained investment in our networks, strong market position and our commitment to customer excellence supported the performance.”
In May, Sheikh Faisal said, “We completed the sale of Ooredoo Myanmar to Nine Communication Pte. This transaction is aligned to the ‘value focused pillar’ of our strategy to maintain leading market positions in the countries that we operate in. Ooredoo continued to make good progress in executing its disciplined strategy aiming to unlock value through operational efficiencies and key strategic initiatives while navigating industry complexities.
“Looking ahead as we strategically evolve toward becoming the leading digital infrastructure player in the region, we remain focused on efficiencies and value creation with a forward-thinking approach to navigate industry dynamics with resilience andadaptability.”
Also commenting on the results, Ooredoo Group CEO Aziz Aluthman Fakhroo said, “The strong commercial and operational momentum carried into the first half of 2024, resulting in another strong quarter with growth across all key financial metrics. In H1 2024, revenue grew by 3 percent to QR11.8 billion, while EBITDA increased by 6 percent to QR 5.1 billion, resulting in an EBITDA margin of 43 percent, improving by 1 percentage point YoY. This growth reflects healthy operational performances in Iraq, Algeria, Qatar, Tunisia and Maldives. Our clear focus on driving profitability has led to a normalised net profit growth of 14 percent to QR1.9 billion while normalised free cash flow grew by 6 percent to QR4.1 billion.”
He said, “We continued to deliver on our strategic priorities with tangible progress in the first half of the year. In May, we completed the sale of our Myanmar operation after receiving all required approvals. On the fintech front, OFTI launched ‘walletii’, a mobile money app. Additionally, we established MENA Digital hub, our carrier-neutral data centre company.
“We also strategically positioned Ooredoo at the forefront of AI innovation by collaborating with NVIDIA to become a NVIDIA Cloud Partner. This marks NVIDIA’s first major launch in the region, enabling us to deploy advanced AI technology across our data centres and accelerate digital transformation in the MENA region.”
Looking ahead, he said, “We are on track to meet our full-year targets. We remain committed to boosting profitability across our operations while advancing our strategic priorities as we forge ahead to become the leading digital infrastructure provider in the region.”
Ooredoo remains committed to its strategy based on five fundamental pillars: delivering exceptional customer experience, empowering our people, and nurturing talent, driving innovation as a smart telco, continuously evolving and fortifying our core operations, and maintaining a value-focused portfolio.
Ooredoo is positioning itself as the leading digital infrastructure provider in the region by transforming into a telecom and infrastructure holding company with a delayered multi-business structure, optimising capital deployment and operational focus for increased asset returns in telecommunications operations, towers, data centres, sea cable business, and fintech.
