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Qatar Tribune
30-07-2025
- Business
- Qatar Tribune
Ooredoo net profit up 4% to QR1.9 bn in first half of 2025
Tribune News Network Doha Ooredoo on Wednesday announced its financial results for the six-month period ended June 30, 2025, reporting another strong performance built on operational resilience and strategic investments. Group revenue for the first half of 2025 reached QR11.9 billion, representing a 1 percent increase on a reported basis and a 4 percent rise when excluding the impact of the Myanmar exit. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at QR5.1 billion, up by 1 percent, or 3 percent excluding Myanmar, with a stable EBITDA margin of 43 percent. Net profit increased by 4 percent year-on-year to QR1.9 billion, reflecting the strength of core operations and disciplined execution. Capital expenditure during the period rose significantly to QR1.5 billion, driven by strategic investments across key markets, while free cash flow stood at QR3.6 billion, representing an 11 percent decline due to accelerated network rollouts. The Group's customer base grew to 51.9 million, and including IOH, total customers reached 147.2 million. Commenting on the results, Ooredoo Chairman Sheikh Faisal Bin Thani Al Thani said the company had delivered solid results across key financial metrics, underpinned by a clear business strategy, strong infrastructure, and ongoing strategic investments. He emphasised Ooredoo's commitment to becoming the leading digital infrastructure provider in the MENA region, focusing on sustainable value creation for stakeholders. Ooredoo Group CEO Aziz Aluthman Fakhroo highlighted that solid performances in Kuwait, Algeria, Iraq, Tunisia and the Maldives were key growth drivers during the period. He noted that the Group had made significant progress across strategic initiatives, including the launch of its independent carrier-neutral data centre platform, Syntys, and a partnership with Iron Mountain to enhance scalability. Ooredoo also advanced its fintech operations, particularly in Oman, and expanded its data centre capabilities in Qatar with the deployment of NVIDIA's latest GPUs, marking a first for the country. Ooredoo's strategy continues to be anchored by five pillars: delivering exceptional customer experience, empowering talent, driving smart telco innovation, strengthening core operations, and maintaining a disciplined, value-focused portfolio. The Group is investing across five verticals – telecom operations, towers, data centres, subsea cables and fibre, and fintech – to build a future-proof digital infrastructure business. The TowerCo project, a partnership with Zain Group and TASC Towers Holding, is moving toward establishing the region's largest independent tower company with around 30,000 towers across six MENA markets. Meanwhile, Syntys is rapidly expanding its AI-ready, hyperscale data centres, supported by Iron Mountain's minority equity investment. The launch of sovereign AI cloud services in Qatar has further strengthened Ooredoo's leadership in digital transformation. In fintech, Ooredoo Financial Technology International (OFTI) continued to expand mobile-led financial services in Qatar, Oman and the Maldives, processing over USD 6 billion in transactions and securing a significant share in the international remittances market. Expansion into Tunisia, Iraq and Kuwait is progressing, supported by regulatory approvals and strategic partnerships with global leaders such as Visa, PayPal, Western Union and MoneyGram. The Group also advanced its subsea cable infrastructure with the FIG project, connecting key GCC markets and enabling high-capacity, low-latency data transmission between the GCC and Europe. This positions Ooredoo as a regional enabler of global connectivity and a leader in cloud, AI, and data services. From a financial perspective, Ooredoo maintained a healthy balance sheet with a net-debt-to-EBITDA ratio of 0.7x, well below the Board's guidance. The Group's liquidity position remains strong, supported by QAR 14.8 billion in cash reserves and QAR 5.5 billion in available facilities. At the operational level, Ooredoo Qatar continued to deliver premium market positioning with stable revenue growth and a strong EBITDA margin of 52 percent. Ooredoo Kuwait reported a significant 31 percent increase in EBITDA, driven by higher service revenue and disciplined cost management. In Iraq, Asiacell posted an 8 percent revenue increase with customer numbers rising to 19.4 million, while Ooredoo Algeria recorded double-digit revenue growth of 14 percent. In contrast, Ooredoo Oman faced competitive pressures that impacted profitability, and Ooredoo Palestine continued to operate under difficult political and economic conditions. Looking ahead, Ooredoo reaffirmed its full-year 2025 guidance, with revenue expected to grow between 2 to 3 percent, EBITDA margin to remain in the low 40 percent range, and capital expenditure projected between QR4.5 billion and QR5 billion. With a balanced portfolio, disciplined financial management, and a clear strategic direction, Ooredoo remains well positioned to drive digital transformation across the MENA region, unlocking long-term value for its shareholders, customers, and communities.
Zawya
01-05-2025
- Business
- Zawya
Ooredoo Group delivers solid financial performance
Doha, Qatar: Ooredoo Q.P.S.C. ('Ooredoo') – Ticker: ORDS today announced its financial results for quarter ended 31 March 2025. Quarter one (Q1 2025) Highlights: Revenue remained flat (up by 3%, excluding the impact of Myanmar exit) at QAR 5.8 billion EBITDA was flat (up by 2%, excluding the impact of Myanmar exit) at QAR 2.5 billion EBITDA margin was steady at 43% Net profit of QAR 960 million, up by 5% CAPEX spend of QAR 538 million Free Cash Flow (FCF) of QAR 2.0 billion, down by 8% Customer base of 147.4 million (including IOH) Launched Syntys - a fully independent, carrier-neutral data centre company spun off from Ooredoo Consolidated Group Quarterly Analysis Q1 2025 Q1 2024 % Change Revenue (QAR m) 5,850 5,863 - EBITDA (QAR m) 2,539 2,546 - EBITDA Margin (%) 43% 43% - Net Profit attributable to Ooredoo Shareholders (QAR m) 960 913 5% Normalised Net Profit attributable to Ooredoo Shareholders (QAR m) 962 1,004 -4% CAPEX (QAR m) 538 382 41% CAPEX/Revenue (%) 9% 7% 3pp Free Cash Flow (QAR m) 2,001 2,164 -8% Customers (m) 52.0 58.5 -11% Customers (m) (incl IOH) 147.4 159.3 -7% The disposal of the Ooredoo Myanmar operation was completed on 31 May 2024, and Ooredoo Group's financial results for Q1 2024 include results for Ooredoo Myanmar unless otherwise stated. Year on year (YoY) Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said: 'Ooredoo Group has made a solid start to 2025. Excluding the impact of the Myanmar exit, first quarter revenue increased by 3% YoY to QAR 5.8 billion. Healthy net profit growth of 5% YoY to QAR 960 million. Our results are in line with expectations, demonstrating that our multi-year transformation strategy is on track. Additionally, we are pleased to report that the recommendation by the Board of Directors to distribute a cash dividend of QAR 0.65 per share was approved by our shareholders during the AGM held on 11 March 2025. As we pursue our vision to lead the region's digital infrastructure, our focus remains firmly on sustainable growth and long-term value creation. With strong financial foundations, clear strategic direction, and accelerating momentum, we are well-positioned to navigate change, capitalise on growth prospects, and deliver consistent returns for our shareholders.' Also commenting on the results, Aziz Aluthman Fakhroo, CEO of Ooredoo Group, said: 'Ooredoo Group began the year on a strong note underpinned by sustained operational momentum across our markets with a focus on efficiencies and execution of key strategic initiatives. Excluding the impact of the Myanmar exit, Revenue increased by 3% YoY to QAR 5.8 billion and EBITDA grew by 2% to QAR 2.5 billion. EBITDA margin was maintained at 43%. The Group's performance during the quarter was bolstered by strong growth in Kuwait, Algeria and Iraq. The Group's Net Profit increased by 5% to finish the quarter at QAR 960 million, while FCF remains healthy at QAR 2.0 billion. During the quarter, we successfully launched Syntys, a fully independent, carrier-neutral data centre company spun off from Ooredoo after over two years of strategic planning. Syntys is supported by Iron Mountain as a strategic shareholder, to accelerate data centre expansion and support hyperscalers and enterprises in our region's rapidly evolving tech landscape. The achievements in the first quarter are owed to the Ooredoo teams' diligent efforts. Looking ahead, we remain confident in delivering on our full-year guidance and reinforcing our position as the region's leading digital infrastructure provider. Our strong customer base, broad network footprint, and healthy balance sheet provide us with the resilience and flexibility to continue investing in innovation and capture growth opportunities.' Strategic review In Q1 2025, Ooredoo Group continued to execute against its long-term strategic goal of becoming a telecom and infrastructure powerhouse, anchored by five foundational pillars: delivering exceptional customer experience, empowering talent, driving smart telco innovation, strengthening core operations, and maintaining a disciplined, value-focused portfolio. Ooredoo Group is transforming into the region's leading digital infrastructure provider, combining disciplined execution with strategic investments. Our balanced portfolio allows us to focus capital on high-value and high-growth areas that boost our financial performance and give us long-term sustainability. As we look to the remainder of 2025 and beyond, Ooredoo is strategically positioned to lead the next wave of digital transformation across the region. Our multi-asset, infrastructure-driven model — anchored in towers, data centres, sea cable and fibre connectivity, and fintech — will serve as a powerful platform for long-term value creation, innovation, and regional impact. Through disciplined execution and strategic partnerships, we remain committed to unlocking the full potential of the digital economy for our customers, shareholders, and communities. TowerCo Ooredoo Group, Zain Group, and TASC Towers Holding are advancing toward the creation of the region's largest independent tower company, following the signing of definitive agreements in December 2023. The landmark transaction, a cash and share deal, will consolidate approximately 30,000 towers across six MENA markets under a single TowerCo. The focus remains on closing procedures in each jurisdiction, with regulatory approvals serving as a key part of the process. Once operational, the combined TowerCo is set to unlock scale capital and operational efficiencies and drive long-term value creation. Data centres - Syntys Syntys, a newly established carrier-neutral data centre company in the MENA region, was strategically spun off from Ooredoo Group in Q1 2025, positioning itself as a key enabler of the region's digital transformation. Ooredoo made strong progress on the execution of its data centre carve-out, successfully transitioning operations in Qatar, Tunisia, and Kuwait to Syntys, with the full carve-out across remaining markets expected to be completed by the end of 2025. During the quarter, Ooredoo also formed a strategic partnership with Iron Mountain, a global leader in information management and data centre services. As part of the agreement, Iron Mountain acquired a minority equity stake in Syntys. This partnership is expected to accelerate platform scalability and enhance operational efficiency. With a planned investment of USD 1 billion and initial funding of approximately USD 550 million, Syntys is focused on expanding its data centre capacity beyond 120 megawatts. Leveraging the combined strengths of Ooredoo, Iron Mountain, and a highly experienced leadership team, Syntys is strongly positioned to support the region's growing demand for cloud, artificial intelligence (AI), and digital infrastructure solutions. Fintech Ooredoo Financial Technology International (OFTI), our fintech venture, is making meaningful progress in meeting the financial needs of underserved markets. OFTI, established in 2023, is now fully operational in three markets — Qatar, Oman, and the Maldives. A significant portion of revenue is generated through international remittances. To continue its expansion, the company received approval in principle for a license in Tunisia, where it is currently in the build phase. In addition, it is in advanced stages of the regulatory process and continues to explore entry opportunities in Iraq and Kuwait. OFTI is establishing a financial service marketplace through strategic partnerships with industry leaders such as Western Union, PayPal, Visa, QNB, Thunes, and MoneyGram enabling the Company to leverage extensive networks, enhance service offerings, and accelerate market expansion. In February 2025, OFTI partnered with Qatar's Ministry of Commerce and Industry to integrate its services into the national Single Window platform, enhancing business setup processes for SMEs. These initiatives underscore Ooredoo's commitment to advancing financial inclusion and empowering individuals and businesses across the region through innovative fintech solutions. OFTI is a key player in Qatar, processing over USD 6 billion in transactions annually and holding a 20% market share in international remittances. With a vision to create an integrated marketplace, OFTI is focused on unlocking the untapped potential of the MENA digital payment market, aiming to empower individuals and businesses across the region. Sea cable and Fibre Ooredoo is strategically investing in subsea cable infrastructure to become a global connectivity leader. On 30 January 2025, the Group capitalised on the opportunity to build an international submarine cable that connects all the GCC countries and beyond (Qatar, Oman, the UAE, Bahrain, Saudi Arabia, Kuwait and Iraq) into a single, high-capacity system. The Group has contracted with Alcatel Submarine Networks (ASN) for this build. The 'Fibre In the Gulf' (FIG) project will be the largest subsea cable ever constructed in the GCC, offering a low latency, shorter and secure route to a new corridor connecting Europe. With 24 fibre pairs and a capacity of over 720Tbps, this infrastructure will deliver connectivity benefits to hyperscalers, business customers, governments, AI providers, data centres and telecom operators. As part of the project rollout, the Group secured the first FIG landing point in Kuwait by signing an Administrative License Agreement with Kuwaiti authority CITRA. This reinforces Kuwait's role as a strategic transit hub for global data traffic and underlines Ooredoo's commitment to regional infrastructure leadership. Additionally, Ooredoo signed a Landing Party Agreement with the Iraqi Telecommunications and Post Company (ITPC) to land the FIG cable in Iraq, further expanding the Group's reach into critical corridors linking Asia and Europe. Ooredoo is positioning itself as a key enabler of global connectivity by addressing the surging data demand between Asia and Europe. The FIG project reinforces Ooredoo's digital infrastructure leadership and accelerates the Group's strategic ambitions in AI, cloud, and data services. Financial highlights Revenue Group revenue for the quarter was at QAR 5.8 billion, increasing by 3% YoY, excluding the impact of the Myanmar exit. Algeria, Iraq, Tunisia and Kuwait demonstrated sustained commercial momentum. EBITDA & EBITDA Margin The Group closed the first quarter of 2025 with a 2% YoY increase in EBITDA excluding the impact of the Myanmar exit, reaching QAR 2.5 billion. EBITDA margin remained stable at 43%. Kuwait, Algeria and Iraq increased their contribution to the Group's profitability. Net Profit Reported Net profit of QAR 960 million (Q1 2024: QAR 913 million), up by 5% YoY. Net profit for the quarter accounts for the initial impact of Pillar 2 (QAR 59 million), in line with new global minimum tax requirements. Normalised Net Profit was slightly lower by 4% YoY to QAR 962 million (Q1 2024: QAR 1.0 billion). Normalised Net Profit is adjusted for foreign exchange and impairment. Capital expenditure (CAPEX) The Group deployed a total of QAR 538 million of CAPEX for the first quarter, reflecting an increase of 41% YoY, largely from higher investments in Iraq, Oman, Kuwait, Algeria and Tunisia. Free Cash Flow Free Cash Flow decreased by 8% to QAR 2.0 billion. The strong EBITDA performance was offset by an acceleration of targeted network projects. Debt Ooredoo Group maintained its healthy financial and liquidity position during Q1 2025 with investment-grade ratings. As at 31 March 2025, 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 maintains a conservative approach, ensuring the fixed rate portion continues to dominate the floating rate debt, providing strong protection against interest rate volatility and enhancing stability. The Group has QAR 14.6 billion in cash reserves (net of restricted cash) and QAR 5.4 billion available in undrawn facilities, reflecting a strong liquidity position. Customer base Group customer base stood at 52.0 million, reflecting an increase of 5% YoY, excluding the impact of the Myanmar exit. Including IOH, the customer base reached a total of 147.4 million. Guidance Ooredoo Group is making steady progress towards achieving its FY 2025 targets. Revenue is expected to grow between 2% to 3% with an EBITDA margin in the low 40s% range. Additionally, full-year CAPEX is expected to be within the range of QAR 4.5 billion to 5.0 billion. Operating Companies Q1 2025 highlights Middle East Ooredoo Qatar Reported revenue decreased by 4% YoY to QAR 1,751 million mainly due to lower device sales (-29% YoY), impact of Asian Football Confederation (AFC) revenue in Q1 2024 and data centre carve out. Normalising for the AFC and data centre carve-out impact, revenue declined by 2% YoY. EBITDA reached QAR 928 million for the first quarter, reflecting a 2% decrease YoY on a reported basis. Normalising for the AFC and data centre carve-out impact, EBITDA remained flat YoY. EBITDA margin improved by 1pp, reaching a strong 53%, benefiting from ongoing efforts to improve operational efficiencies. The customer base decreased by 3% YoY to 3.0 million as Q1 2024 included AFC related connections. Ooredoo Kuwait The operation achieved revenue growth of 1% YoY to QAR 766 million driven by an increase in service revenue mainly from higher voice, data and digital revenue. EBITDA expanded significantly by 51% YoY to QAR 259 million with an improvement in the EBITDA margin of 11pp to 34%. Higher service revenue and lower operating expenses contributed to the improvement in EBITDA and the margin. Q1 2024 also included a one-off bad debt provision raised in line with standard company policy. Normalising for the aforementioned one-off bad debt provision, EBITDA increased by 13% YoY. Customer base increased by 2% YoY to end the first quarter with 2.9 million customers. Ooredoo Oman Ooredoo Oman continued to drive momentum in mobile services with ongoing network optimisation, sustaining mobile service revenue YoY. Ooredoo Oman continued to navigate the highly competitive market. Revenue decreased by 3% YoY to QAR 587 million mainly due to lower service revenue. This had a negative impact on EBITDA, which decreased by 7% to QAR 259 million. EBITDA margin dropped by 2pp to 44%. Customer base decreased by 3% YoY to 3.0 million. The operation remains focused on evolving the business in line with its customers' changing needs, launching new 5G initiatives and expanding 5G coverage to strengthen its position and lay the foundation for a resilient FY 2025. Asiacell – Iraq Asiacell continued to build on its growth momentum against the backdrop of a dynamic and expanding market. The operation delivered revenue growth of 8% YoY to QAR 1,312 million driven by an increase in customer acquisitions and a healthy performance in the data segment attributable to higher usage. EBITDA increased by 5% YoY to QAR 591 million due to topline growth which was offset by higher operating expenses. This also impacted the margin, which declined by 1pp to 45%. Asiacell's performance was supported by the 9% YoY growth in its customer base to 19.7 million. Ooredoo Palestine While the economic conditions posed continued challenges, Ooredoo Palestine expanded its customer base by 6% YoY to 1.5 million. Revenue decreased by 3% YoY to QAR 94 million, while EBITDA declined by 4% YoY to QAR 35 million, reflecting the impact of macroeconomic pressures. The EBITDA margin for the first quarter ended at 38%. Ooredoo Palestine continues to support its communities amid the ongoing war and political instability. Notably, the company restored coverage across most of the densely populated areas in Gaza, increasing the number of active sites by over 50%. North Africa Ooredoo Algeria Ooredoo Algeria continued to deliver a strong performance in the first quarter of 2025, building on its successful performance over the past quarters. Revenue grew by 12% YoY to QAR 743 million driven mainly by data, digital and voice revenue growth supported by a high-quality network. EBITDA expanded by 12% YoY to QAR 316 million with a solid EBITDA margin of 42%. The customer base ended at 14.5 million for the first quarter, up by 7% YoY. Ooredoo Tunisia In the first quarter, following the issuance of 5G licences, Ooredoo Tunisia launched 5G products and services in February 2025, responding to a strong market demand for 5G fixed wireless access. The operation achieved revenue growth of 3% YoY to QAR 370 million. This growth was driven by the solid performance in the mobile segment supported by high-quality subscriber acquisitions and enhanced customer value management initiatives. The fixed segment also contributed positively to the topline growth supported by the growing demand for high-speed connectivity across fibre. EBITDA remained stable YoY at QAR 143 million as topline growth was offset by higher operating expenses. The EBITDA margin for the first quarter stood at 39%, a decrease of 1pp. The customer base for the first quarter ended at 6.9 million, reflecting a 3% YoY decline. Ooredoo Tunisia continues to invest in infrastructure to support the growing demand for broadband and ensure quality connectivity. Asia Indosat Ooredoo Hutchison (IOH) IOH, equity-accounted JV, announced its full financial results on 30 April 2025 (IOH). The Q1 2025 performance was impacted by increasing competition in the market. On a YoY basis, Revenue declined by 2%, EBITDA decreased by 1% while EBITDA margin improved slightly by 0.5pp to 47%. Ooredoo Maldives Revenue decreased by 1% YoY to QAR 129 million primarily due to heightened competition in the prepaid market. Operational efficiencies contributed to an EBITDA increase of 1% YoY to QAR 70 million, with an EBITDA margin expansion of 1pp to 55%. Ooredoo Maldives expanded its customer base by 5% YoY to 426k customers. The operation expanded its 5G network coverage to 80% of the population, making it the most extensive in the Maldives. This expansion supports the country's digital transformation by enhancing connectivity, driving innovation, and improving user experience. -Ends- About Ooredoo: Ooredoo is an international communications Company operating across the Middle East, North Africa, and Southeast Asia. It serves consumers and businesses in nine countries, delivering Ooredoo a broad range of content and services through its advanced, data-centric mobile and fixed networks. As of 31 December 2024, Ooredoo generated full-year Revenue of QAR 24 billion. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange. About Syntys: Syntys is a leader in physical and digital infrastructure services, specializing in the design, construction, and management of data centers. With a network of operational facilities across various markets in the MENA region, Syntys serves hyperscalers, colocation wholesale providers, and AI infrastructure deployments, enabling seamless digital growth in the region. Contact: Investor Relations Email: IR@ Follow us on Twitter: @OoredooIR For additional information, including detailed supplemental schedules, financial statements, and details about our investor call, please visit our website at Disclaimer Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of ('Ooredoo Group') cautions investors that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Ooredoo Group management wishes to further caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected because of risks and uncertainties including, but not limited to: Our ability to manage domestic and international growth and maintain a high level of customer service Future sales growth Market acceptance of our product and service offerings Our ability to secure adequate financing or equity capital to fund our operations Network expansion Performance of our network and equipment Our ability to enter strategic alliances or transactions Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment Regulatory approval processes Changes in technology Price competition Other market conditions and associated risks This document does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Ooredoo Group The Ooredoo Group undertakes no obligation to update publicly or otherwise any forward-looking statements, whether because of future events, new information, or otherwise
Zawya
12-03-2025
- Business
- Zawya
Ooredoo holds Annual General Meeting
Doha, Qatar: Ooredoo held its Annual General Meeting today, where Shareholders discussed and approved the Company's Corporate Governance Report and financial statements, following confirmation of full year results for 2024. During the Meeting, shareholders approved the recommendation of the Board of Directors to distribute a cash dividend of QAR 0.65 per share. In his address to the meeting, H.E. Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, highlighted the significant strides the company has marked towards its evolution into a leading digital infrastructure provider through strategic investments and the expansion of our global connectivity footprint: '2024 was another solid year for Ooredoo Group, seeing substantial growth across all key financial metrics and delivering value to our stakeholders as we continue to diligently execute our strategy. The Group made robust operational progress, and our strong results demonstrate that our strategy is working in delivering strong shareholder returns.' 'For the third year in a row, we report strong growth in all key financial metrics, closing 2024 with record-high earnings that surpassed USD 1 billion in Normalised Net Profit for the first time, while maintaining healthy cash reserves and liquidity levels,' he added. As a result of strategic investments and effective market positioning, Revenue increased by 2% year-on-year to QAR 23.6 billion in 2024, driven by strong performance in Iraq, Algeria, Kuwait, Tunisia and the Maldives. This was partially offset by a decline in Revenue form Qatar and Oman. Ooredoo's focus on profitability led to an EBITDA of QAR 10 billion, up by 3% year-on-year. EBITDA margin expanded by 1pp to 42.5% thanks to healthy service revenue growth and disciplined approach to cost control. Group Net Profit attributable to Ooredoo shareholders increased by 14% year-on-year to QAR 3.4 billion in 2024. Normalised Net Profit grew by 12% YoY to reach QAR 3.7 billion. The delivery of these strong Net Profit figures is a testament to the Group's ongoing focus on profitability and efficient operational management. The best-in-class network and unmatched customer experience is attracting more customers to the network, ending 2024 with a total of 51.5 million customers, reflecting a 5% increase YoY (excluding Ooredoo Myanmar). Including IOH, the customer base reached a total of 146.2 million. Highlights of the period include the establishment of MENA Digital Hub, Ooredoo's new carrier-neutral data centre company. Ooredoo also collaborated with NVIDIA, becoming their Cloud Partner in the region. Ooredoo acquired, through Alcatel Submarine Networks, the 'Fibre in Gulf' project - the largest subsea cable ever built in the GCC - connecting all GCC countries and beyond. Ooredoo Fintech continues to expand beyond its market leadership in Qatar and the Maldives, launching walletii in Oman. During the Company's AGM, the following items were discussed and approved: Hearing and approving the Board's report for the year ended 31st December 2023 and discussing the Company's future business plans. Discussing the Corporate Governance Report for the year 2024. Hearing the External Auditor's report for the year ended 31st December 2024. Discussing and approving the Company's financial statements for the year ended 31st December 2024. Discussing and approving the Compliance report of the QFMA Corporate Governance & Internal Control over Financials Reporting report for the year ended 31st December 2024. Discussing and approving the Board of Directors' recommendations regarding the distribution of dividends for the year 2024. Discharging the Members of the Board from liabilities and determining their remuneration for the year ended 31st December 2024. Appointing the External Auditor for the year 2025 and determining its fee. About Ooredoo Ooredoo is an international communications company operating across the Middle East, North Africa, and Southeast Asia. Serving consumers and businesses in nine countries, Ooredoo delivers leading data experience through a broad range of content and services via its advanced, data-centric mobile and fixed networks. Ooredoo generated revenues of QAR 23 billion as of 31 December 2024. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.
Zawya
11-02-2025
- Business
- Zawya
Ooredoo Group FY 2024 announced
Record high Normalised Net profit of QAR 3.7 billion, up by 12% and reported Net profit of QAR 3.4 billion, up 14%, marking a third consecutive year of growth Board proposed a cash dividend of QAR 0.65 per share, up 18% Doha, Qatar: Ooredoo Q.P.S.C. ('Ooredoo') – Ticker: ORDS today announced its financial results for the year ended 31 December 2024. Full-year 2024 (FY 2024) Highlights: Revenue increased by 2% to QAR 23.6 billion EBITDA up by 3% to QAR 10.0 billion EBITDA margin increased by one percentage point (pp) to 42.5% Record reported Net profit of QAR 3.4 billion, up by 14%, marking three consecutive years of growth CAPEX spend of QAR 3.2 billion Strong normalised Free Cash Flow (FCF) of QAR 6.8 billion, up by 1% Customer base of 146.2 million (including IOH and excluding Myanmar) Progressed toward becoming the leading digital infrastructure provider in the MENA region Board proposed a cash dividend of QAR 0.65 per share, up 18% The disposal of the Ooredoo Myanmar operation was completed on 31 May 2024, and Ooredoo Group's financial results for 2024 include results for Ooredoo Myanmar until 31 May 2024. Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said: '2024 was another solid year for Ooredoo Group, which saw growth across revenue, partnerships and delivering value to our stakeholders as we continue to make substantial progress on our strategy. Revenue grew by 2% to QAR 23.6 billion while reported Net Profit increased by a healthy 14% to QAR 3.4 billion. I am pleased to announce that the Board of Directors will recommend a cash dividend distribution of QAR 0.65 per share, in line with our sustainable and progressive dividend policy, at the Annual General Meeting in March. The Group is making robust operational progress, and our results remain consistent with our expectations, demonstrating that our strategy is working as planned. We continue to stay disciplined in pursuing profitable growth driven by our ongoing operational transformation to expand our capabilities across our markets. Heading into 2025, we remain focused on becoming the leading digital infrastructure provider in the region, deploying an effective, agile and forward-looking strategy to stay ahead and generate positive returns for our shareholders." Also commenting on the results, Aziz Aluthman Fakhroo, CEO of Ooredoo Group, said: Ooredoo Group posted another year of strong growth in 2024, marked by sustained operational momentum, a robust and ever-increasing financial position as well as the achievement of key strategic milestones. Revenue for the year reached QAR 23.6 billion, a rise of 2% compared to last year, underpinned by solid performances in Iraq, Algeria, Kuwait, Tunisia and Maldives. Group profitability remained a central focus, with EBITDA increasing by 3% to QAR 10.0 billion, delivering an EBITDA margin of 42.5%, up by 1pp. Reported Net profit hit a record high of QAR 3.4 billion, marking the third consecutive year of record earnings. Normalised Free cash flow ticked up by 1% to QAR 6.8 billion, highlighting the Group's strong financial health and operational discipline. These results prove that our combination of best-in-class network and unmatched customer experience will continue to set us apart in the market. We advanced on our journey toward becoming the MENA region's leading digital infrastructure provider by delayering the Group into focused verticals and adjacencies to drive more operational efficiency. We positioned ourselves at the forefront of Artificial Intelligence (AI) through our collaboration with NVIDIA to become a Cloud Partner in the region, and we see AI still holds significant untapped potential and opportunities. 2024 was a notable year for our financing initiatives. We secured QAR 2.0 billion with 10-year tenor in a landmark financing deal to accelerate the expansion of our data centre business and successfully executed a USD 500 million, 10-year international bond issuance. In our fintech vertical, we launched 'walletii' and obtained Payment Service Provider (PSP) licenses in Oman, Maldives and in Tunisia just before the end of Q4. We are intensifying our focus on subsea cable systems to establish ourselves as a global connectivity leader, and post-year-end, we capitalised on the opportunity to acquire through Alcatel Submarine Networks, a submarine cable that connects all the GCC countries and beyond, in a single, high-capacity loop. The 'Fibre in Gulf' project will be the largest subsea cable ever built in the GCC, delivering an unparalleled 720Tbps of capacity across 24 fibre pairs - more than the combined capacity of all existing and planned Gulf cables. These achievements are a direct reflection of the dedication and hard work of our talented employees. Looking ahead, Ooredoo will build on its success to become the region's leading telecom and digital infrastructure provider. By driving new revenue streams within its balanced portfolio and maintaining a strong financial position, we aim to unlock greater value for our stakeholders. The focus on sharpening our structure and optimising our processes will help us create a sustainable, high-performance business primed for long-term success in the region.' Strategic review 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. We have a balanced portfolio that provides exposure to both stable economies with modest growth and dynamic, high growth markets with fast-growing GDPs and population growth trends. We will continue to provide strong shareholder value by rolling out strategic growth initiatives and making smart investments across our markets. 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. TowerCo Ooredoo Group, Zain Group, and TASC Towers Holding jointly announced the signing of definitive agreements to create the largest tower company in the MENA region through a cash and share deal in December 2023. The primary focus remains on finalising the closing of the transactions in each market, which requires regulatory approval. Data centres Ooredoo achieved good progress in its data centre vertical with the establishment of a carrier-neutral data centre company with a dedicated and experienced CEO at the helm. The data centre assets in Qatar, Tunisia and Kuwait were carved out and managed under the new independent, specialised data centre entity. The carve-out of the rest of the data centre assets from other Ooredoo markets is expected to be completed in 2025. To support the data centre expansion, Ooredoo secured a QAR 2.0 billion, 10-year financing deal with QNB, Doha Bank, and Masraf Al Rayan in September 2024. This landmark deal, the largest of its kind in Qatar's tech industry, will enable the strategic carve out of existing data centre assets from Ooredoo's telecom operations. A significant portion of the financing will be directed toward expanding capacity and upgrading infrastructure to meet the growing demand for AI, cloud services, and hyperconnectivity across the MENA region. This builds on Ooredoo's aim to lead in AI innovation, highlighted by its strategic collaboration with NVIDIA in June 2024. By leveraging NVIDIA's cutting-edge AI platform, Ooredoo aims to accelerate digitalisation and innovation across the region. As an NVIDIA Network Cloud Partner, Ooredoo will integrate thousands of Tensor Core GPUs into its data centres, boosting its technological capabilities and solidifying its position at the forefront of AI advancements. As part of our journey to becoming the region's leading digital infrastructure provider, the data centre company aims to expand its capacity to over 120 megawatts with a USD 1 billion investment over the medium to long term. This will include a new generation of sustainable, energy-efficient, and carrier-neutral data centres across the MENA region. Fintech Ooredoo Financial Technology International (OFTI), our fintech venture, continues to scale successfully in its pursuit of meeting the financial needs of underserved markets. OFTI remained market leader in Qatar and started growing its presence in Oman and Maldives after obtaining PSP licenses in 2024. On 24th December 2024, OFTI successfully obtained the license in Tunisia and commenced with the build phase. The Company also launched its mobile money app branded as 'walletii by Ooredoo' that provides a financial ecosystem for consumers and merchants to simplify their money management, allowing them to receive, send and spend both domestically and internationally. OFTI will continue to pursue license applications in Iraq and Kuwait in 2025. OFTI is a key player in Qatar, processing over USD 6 billion in transactions annually and holding a 20% market share in international remittances. With a vision to create an integrated marketplace, OFTI is focused on unlocking the untapped potential of the MENA digital payment market, aiming to empower individuals and businesses across the region. Financial highlights Revenue The sustained solid operational performances in Iraq, Algeria, Kuwait, Tunisia, and Maldives supported a 2% YoY increase in Group revenue to QAR 23.6 billion (2023: QAR 23.2 billion). This increase was partially offset by a decrease in revenue from Qatar and Oman. EBITDA & EBITDA Margin An ongoing priority across the Group is improving operational efficiencies, enhancing profitability across nearly all our operations. EBITDA grew by 3% YoY to QAR 10.0 billion. EBITDA margin increased by 1pp to 42.5%. Iraq, Algeria, Tunisia, Qatar and Maldives contributed positively to the Group's improved profitability. Net Profit The Group successfully delivered another year of strong Net profit results. Reported Net profit hit a record high of QAR 3.4 billion (2023: QAR 3.0 billion), up by 14% YoY, marking the third consecutive year of record earnings. This is a testament to the Group's commitment and ability to drive profitability. The Group delivered strong double-digit Normalised Net Profit growth of 12% YoY to QAR 3.7 billion (2023: QAR 3.3 billion). Normalised Net Profit is adjusted for foreign exchange, impairments, and exceptional items. Capital expenditure (CAPEX) The Group deployed a total of QAR 3.2 billion of CAPEX for 2024. This reflected an increase of 13% YoY, largely from higher investments in Iraq, Oman, Tunisia, and Kuwait. Free Cash Flow Normalised Free Cash Flow increased by 1% to QAR 6.8 billion. The healthy FCF underscores the Group's strong financial health and operational discipline. The strong EBITDA performance was offset slightly by an acceleration of targeted network projects. Debt Ooredoo Group maintained its healthy financial and liquidity position for 2024 with investment-grade ratings. As of 31 December 2024, the Group's Net-Debt-to-EBITDA ratio stood at 0.4x, below the Board's guidance of 1.5x to 2.5x. The Group maintains a conservative approach, ensuring the fixed rate portion continues to dominate the floating rate debt which provides strong protection against interest rate volatility. As at 31 December 2024, approximately 92% of debts are at fixed rate. The Group has QAR 16.2 billion in cash reserves (net of restricted cash) and QAR5.6 billion available in undrawn facilities, reflecting a strong liquidity position. Ooredoo successfully issued USD 500 million in 10-year senior unsecured notes in October 2024 under its existing USD 5 billion Global Medium Term Notes programme. Priced with a spread of 88 basis points over 10-year U.S. Treasuries, this marks the tightest spread ever achieved in Ooredoo's history as well as one of the lowest in the emerging markets and the lowest for a global telecommunications company on a 10-year bond since 2020. The funds raised from this issuance will be used for general corporate purposes, including refinancing existing debt. Customer base The best-in-class network and unmatched customer experience is attracting more customers to the network, ending 2024 with a total of 51.5 million customers, reflecting a 5% increase YoY (excluding Ooredoo Myanmar). Including IOH, the customer base reached a total of 146.2 million. Dividends The Board will recommend the distribution of a cash dividend of QAR 0.65 per share at the Annual General Meeting, to be held in March 2025. This represents a dividend increase of 18% YoY and a payout of 58% of normalised earnings in line with the dividend policy. Ooredoo Group has a sustainable and progressive dividend policy which aims for a payout in the range of 40% to 60% of normalised earnings. Operating Companies FY 2024 highlights Middle East Ooredoo Qatar Ooredoo Qatar delivered a robust financial performance in a highly competitive environment as the demand for digital and data services across Qatar increased in 2024. Ooredoo Qatar's reported revenue decreased by 2% YoY to QAR 7,123 million as 2023 base included revenue from data centres and one-off projects. Normalising for these items, revenue was 1% below the prior year, mainly due to lower mobile services and device sales. The operation sustained profitability despite market challenges, with EBITDA reaching QAR 3,683 million, reflecting a 2% increase YoY on a reported basis. Normalising for the above revenue items and one-time bad debt provisions recorded in 2023 and 2024, EBITDA declined by 1% YoY. EBITDA margin improved by 2pp, reaching an industry-leading 52%, reflecting the continued benefit of initiatives to drive operational efficiencies and cost controls. Ooredoo Qatar remains the largest telco provider in the country with a customer base that remained flat YoY to reach 3.0 million driven by enhanced digital experiences, strong partnerships with leading brands and the introduction of innovative services tailored to evolving consumer demands. Ooredoo Kuwait The operation achieved a healthy underlying result for the year. This performance was underpinned by a comprehensive strategic focus on innovation, delivering excellent customer experience, and optimising efficiencies. Revenue increased by 7% YoY to QAR 3,132 million backed by higher service revenue owing to a rise in usage of data and digital services as well as equipment revenue. The one-off bad debt provisions recorded in 2024 led to a decrease in EBITDA of 14% YoY to QAR 839 million and a reduction in the EBITDA margin of 7pp to 27%. Normalising for the one-off bad debt provisions, EBITDA remained flat YoY. Ooredoo Kuwait's customer base increased by 2% YoY, ending the 2024 year with 2.9 million customers on its network. Ooredoo Oman Ooredoo Oman continued to navigate a highly competitive telecommunications landscape with intensifying market activity. While revenue in Oman declined by 3% YoY to QAR 2,381 million due to challenging market dynamics, the launch of new 5G initiatives is expected to stabilise performance in FY 2025. EBITDA reached QAR 1,084 million, reflecting a 6% decrease YoY, impacted by lower service revenue and higher operating costs. EBITDA margin ended at a resilient 46%, down 2pp YoY. Ooredoo Oman's customer base declined by 10% YoY to close the year with 2.8 million customers on its network. The operation is focused on expanding its 5G footprint and enhancing mobile and fixed connectivity offerings to improve its competitive position through targeted customer-centric initiatives, including hyper-personalised digital experiences, innovative IoT solutions, and differentiated B2B services. Ooredoo Oman continued to innovate and, during the year, launched 'walletii,' the Sultanate's first mobile money app offering a remittance marketplace. Additionally, we strengthened global connectivity by signing an agreement to land the 2Africa Cable System in Oman. As the world's largest subsea cable network, this project will enhance connectivity for over three billion people across 33 countries. Asiacell – Iraq Asiacell delivered another noteworthy performance leveraging the favourable market conditions resulting in higher customer acquisitions and a healthy performance in the data segment. Asiacell achieved double-digit revenue growth of 16% YoY to QAR 5,164 million. EBITDA expanded by 22% YoY to QAR 2,374 million with a 2pp EBITDA margin improvement to 46%. Asiacell grew its customers by 8% YoY to reach a customer base of 19.1 million. Ooredoo Palestine In a year marked by unprecedented challenges, the company demonstrated unwavering commitment to its customers, employees, and the broader community, reinforcing its role as a critical enabler of connectivity in Palestine. Notwithstanding the challenging operating environment, Ooredoo Palestine delivered a resilient 2024 performance. The operation prioritised the connectivity needs of its customers driving an 8% increase YoY to close the year with a total of 1.6 million customers. The results were impacted by the challenging conditions and foreign exchange fluctuations; revenue remained flat at QAR 397 million while EBITDA declined by 6% YoY to QAR 146 million. EBITDA margin for the year ended at 37%. North Africa Ooredoo Algeria Ooredoo Algeria achieved strong results in 2024, recording another year of double-digit revenue and EBITDA growth underpinned by the strong performance in data and digital revenue streams and continued strategic investments in network expansion and digitalisation. Revenue reached QAR 2,839 million, marking a 15% increase YoY which in turn drove a 21% YoY expansion in EBITDA to QAR 1,199 million with a solid EBITDA margin of 42%, up by 2pp. The customer base jumped to 14.7 million at the end of 2024, representing a growth of 10% YoY, reaping the benefits of network densification, which improved customer experience. Ooredoo Tunisia Ooredoo Tunisia achieved solid financial and operational growth in 2024 driven by an increase across most of its service segments and operational efficiencies. The operation capitalised on opportunities through strategic investments in the fixed business driven by strong demand and the expansion of fibre-optic networks and fixed wireless broadband access. Revenue for the year grew by 5% YoY to QAR 1,542 million. EBITDA saw significant growth, improving YoY by 16%, or 6% when excluding the exceptional bad debt reported in 2023. EBITDA margin expanded by 4pp to 42% attributable to good topline performance and effective cost management. The customer base was lower by 3% YoY to close the year with a total of 7.0 million customers on its network. Asia Indosat Ooredoo Hutchison (IOH) IOH, equity-accounted JV, announced its 2024 financial results on 10 February 2025 (IOH), with results once again reflecting strong YoY growth across all key metrics: revenue up by 9%, EBITDA grew by 10% and EBITDA margin remained flat at 47%. Ooredoo Maldives Ooredoo Maldives delivered a strong performance for 2024 maintaining its leadership position through a strong focus on customer engagement, innovation, strategic partnerships, and a growing service portfolio aligned to market demands. Revenue increased by 5% YoY to QAR 520 million backed by growth in the mobile segment. EBITDA grew by 2% YoY to QAR 284 million benefitting mainly from higher service revenue partially offset by higher operating costs. EBITDA margin ended at a strong 55%, down by 2pp. The customer base increased by 3% YoY to 405k customers as Ooredoo Maldives continued to improve the digital experiences of its customers while contributing to the development of a Digital Maldives. A key milestone in 2024 was the expansion of its 5G network to cover 60% of the population, positioning Ooredoo Maldives as the largest 5G network provider in the country. The shift towards 5G is expected to continue driving demand for mobile broadband services. -Ends- About Ooredoo Ooredoo is an international communications Company operating across the Middle East, North Africa, and Southeast Asia. It serves consumers and businesses in nine countries, delivering Ooredoo a broad range of content and services through its advanced, data-centric mobile and fixed networks. As of 31 December 2024, Ooredoo generated full-year Revenue of QAR 23 billion. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange. Contact: Investor Relations Email: IR@ Follow us on Twitter: @OoredooIR For additional information, including detailed supplemental schedules, financial statements, and details about our investor call, please visit our website at Disclaimer Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of ('Ooredoo Group') cautions investors that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or predictions of the future and, as such, are forward-looking statements. Ooredoo Group management wishes to further caution the reader that forward-looking statements are not historical facts and are only estimates or predictions. Actual results may differ materially from those projected because of risks and uncertainties including, but not limited to: Our ability to manage domestic and international growth and maintain a high level of customer service Future sales growth Market acceptance of our product and service offerings Our ability to secure adequate financing or equity capital to fund our operations Network expansion Performance of our network and equipment Our ability to enter strategic alliances or transactions Cooperation of incumbent local exchange carriers in provisioning lines and interconnecting our equipment Regulatory approval processes Changes in technology Price competition Other market conditions and associated risks This document does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in any company within the Ooredoo Group The Ooredoo Group undertakes no obligation to update publicly or otherwise any forward-looking statements, whether because of future events, new information, or otherwise
