Tribune News Network
Doha
Ooredoo QPSC on Wednesday said the group’s revenue grew by 2 per cent to QR17.7 billion for the first nine months of 2024, driven by strong operational performance in Iraq, Algeria, Kuwait, Tunisia and Maldives. This increase was partially offset by a decrease in revenue from Qatar and Oman.
The increase in revenue across the Group demonstrates the positive return on our investments while ensuring excellence in customer service. The combination of fixed asset investments, introduction of new and innovative products and improving customer satisfaction across the markets continue to support our bottom line and deliver sustained growth.
On a normalised basis, net profit grew by 15 percent to QR2.9 billion. Reported net profit was up by 10 per cent YoY to reach QR2.9 billion.
Focused efforts on profitability resulted in an EBITDA growth of 4 per cent YoY to QR7.7 billion along with a 1pp improvement in the EBITDA margin, reaching 44 per cent.
Iraq, Algeria, Qatar, Tunisia and Maldives contributed positively to the Group’s enhanced profitability.
Capital expenditure rose to QR1.9 billion, marking a 22 per cent increase, primarily due to increased investments in Iraq, Kuwait, Oman, Algeria, Tunisia and Qatar.
Normalised free cash flow remained flat at QR5.8 billion. The strong EBITDA performance was offset by an acceleration of network projects.
Ooredoo Group upheld a strong financial and liquidity position, sustaining investment-grade ratings.
As of 30 September 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 98 percent of the debt is structured on a fixed-rate basis. Liquidity remains strong, with QR12.4 billion in cash reserves (net of restricted cash) and QR5.2 billion available in undrawn facilities.
The Group’s customer base decreased by 11 percent YoY (increased by 5 percent YoY excluding Ooredoo Myanmar) to 50.7 million customers for 9M 2024.
Sheikh Faisal bin Thani Al Thani, Chairman, said, “The Group continues to reap the benefits of the initiatives undertaken over recent years to transform our operational model, focusing on high-value assets and achieving high-quality growth across the markets that we operate in.
“We also secured funds through bank financing and a long-term bond issuance, underscoring the view from our banking partners and the market that Ooredoo is regarded as a reliable, secure and future-proofed investment option.
“As we strategically evolve into a leading digital infrastructure provider serving the region, we will continue to prioritise efficiency and value creation, employing a flexible, dynamic and forward-thinking approach to power Ooredoo’s future growth.”
The Group’s strong results continued to be supported by solid operational performances in Iraq, Algeria, Qatar, Tunisia and Maldives.
“We advanced our journey toward becoming the MENA region’s leading digital infrastructure provider, achieving a major milestone in our strategic vision by securing QR2 billion through a significant financing initiative to accelerate the expansion of our data centre and AI business,” the chairman said.
“We will strategically allocate these funds to carve out existing data centre assets from our telecom operations, with a focus on boosting capacity and upgrading infrastructure to meet rising demand. As one of the fastest-growing data centre markets globally, the MENA region holds significant untapped potential in AI, and we are committed to capitalising on this opportunity.
“After the quarter ended, we successfully completed a historic, oversubscribed $500 million 10-year international bond issuance, marking the narrowest spread over 10-year U.S. Treasuries in our company’s history. The strong demand for this bond highlights investors’ confidence in our strategy, as well as our operational and financial performance.”
In December 2023, Ooredoo Group, Zain Group and TASC Towers Holding jointly announced the signing of definitive agreements to establish the largest tower company in the MENA region through a cash and share deal.
The primary focus remains on finalising the closing of the transactions in each market, starting with Qatar, which is progressing well. These transactions are expected to be completed within 18 to 24 months from the announcement date.
Ooredoo announced the establishment of a carrier-neutral data centre company with a dedicated and experienced CEO.
Its data centre assets in Qatar, Tunisia and Kuwait have already been carved out and placed under the new independent, specialised data centre entity. The carve-out of data centre assets from other Ooredoo markets is expected to be completed in 2025.
In September 2024, Ooredoo announced the successful signing of a QR2 billion, 10-year financing deal with QNB, Doha Bank, and Masraf Al Rayan to accelerate data centre expansion, representing the largest ever transaction in Qatar’s tech industry. The funds will be strategically utilised to separate existing data centre assets from Ooredoo’s telecom operations, with a substantial portion allocated to expanding capacity and upgrading infrastructure to meet the rising demand for AI, Cloud services, and hyperconnectivity across the MENA region.
This builds on Ooredoo’s recent strategic initiatives to position itself at the forefront of AI advancement. In June 2024, Ooredoo entered a strategic collaboration with NVIDIA to drive digitalisation and innovation in the region by leveraging NVIDIA’s advanced AI platform.
