Ooredoo Group Announced Qar 29.9 Billion Revenue in Fy 2019 Net Profit Increased 10% to Qar 1.7 Billion

Ooredoo Q.P.S.C. (“Ooredoo”) - Ticker: ORDS today announced its financial results for the year ended 31 December 2019.

Financial Highlights:

Strong Q4 2019 with Revenue growth (+8% yoy) contributing to a strong EBITDA improvement (+11% yoy)

• Reported Group Revenue was stable at QAR 29.9 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.
• FY 2019 Group EBITDA increased by 5% year-on-year to QAR 12.8 billion, with a corresponding EBITDA margin of 43%, driven by efficiency programs in some operating companies  and a positive impact from the implementation of the new IFRS 16 accounting standard.
• Group Net Profit attributable to Ooredoo shareholders increased by 10% to QAR 1.7 billion in 2019, compared to last year. Growth was driven by  an increase in EBITDA, a more favorable 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 performed well. Furthermore Ooredoo Indosat’s Profit benefited from the sale of 3,100 towers.

The Board recommends the distribution of a cash dividend of QAR 0.25 per share.  Additionally, the Ooredoo Board approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings.

Operational highlights:

• The Group customer base was 117 million, up by 2% compared to 2018, mainly driven by new customers in Indonesia, Myanmar and Kuwait.
• Ooredoo Group leads in 5G adoption with live commercial 5G networks in Qatar and Kuwait and successful 5G testing in Oman. Ooredoo Qatar applied 5G technology during the FIFA Club World Cup Final in December 2019 in Doha with excellent coverage and network quality. In Oman Ooredoo showcased the power of 5G at experience zones in its stores across Muscat and Salalah.
• Ooredoo launched a number of innovative products including ‘ANA’ in Kuwait, a brand new fully digital mobile experience which gained the distinction of ‘Best Digital Service’ at the Telecoms World Middle East Awards 2019.
• Ooredoo continued to be a pioneer in emerging markets, becoming the first company in Algeria to offer 4G services to all 48 Wilayas (provinces), building the fastest mobile network in Myanmar, reconnecting services to the liberated areas in Iraq and achieving the widest 3G coverage in the country, and capturing a strong 4G market leadership position in Tunisia.  
• In Q4 2019, Indosat Ooredoo concluded the sale of 3,100 telecommunication towers with a total transaction amount of IDR 6.39 trillion (equivalent to QAR 1,644 million). This transaction will allow Indosat Ooredoo to further invest into the network and improve customer experiences.
• Post period, Ooredoo Maldives’ telecommunications license, which encompasses mobile, fixed and internet services, was extended by 15-years starting as of Feb 1, 2020.

 Commenting on the results, H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, Chairman of Ooredoo, 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.

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.

Importantly, our strategy enabled us to deliver a strong financial performance in 2019, with reported net profit attributable to shareholders up by 10% to QAR 1.7 billion. Therefore, I am pleased to announce that the Board of Directors will recommend the distribution of a cash dividend of QAR 0.25 per share at the annual general meeting in March 2020. Our Board approved a sustainable and progressive dividend policy for the company, aiming for a dividend pay-out range of 40% to 60% of normalised earnings.

Operationally, we are leading the industry through innovation and by offering our customers world class services that complement their digital lifestyles. In our home market of Qatar, we were honoured to be recognised as the best ‘Global Mobile Solution’ in 2019 by MoneyGram, for our mobile payment solution, Ooredoo Money. In Kuwait, we were awarded the ‘Best Digital Service’ at the Telecoms World Middle East Awards 2019, for ANA, a fully digital mobile experience launched early last year.”          

Also commenting on the results, Sheikh Saud bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo 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 QAR 29.9 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. EBITDA for 2019 was QAR 12.8 billion, an increase of 5% compared to the previous year. Similarly, our EBITDA margin improved to 43% in 2019, compared to 41% in the previous year driven by improvements in Qatar, Kuwait, Tunisia, Indonesia and Maldives.

Ooredoo Qatar managed to improve EBITDA margins from 52% in 2018 to 54% 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% and EBITDA growth of 47% 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%.

An optimised product mix and careful cost management contributed to a 31% growth in Ooredoo Kuwait’s EBITDA, despite competitive market pressures.”

Operational Review

Middle East