06-05-2025
Ooredoo QPSC (DSMD:ORDS) Q1 2025 Earnings Call Highlights: Strong Revenue and Profit Growth ...
Total Revenue: QAR5.8 billion, a 3% increase excluding Myanmar exit impact.
EBITDA: QAR2.5 billion, a 2% increase excluding Myanmar exit impact; EBITDA margin at 43%.
Net Profit: Increased by 5% to just under QAR1 billion.
CapEx: QAR538 million, a 41% increase driven by investments in Iraq, Oman, Kuwait, Algeria, and Tunisia.
Free Cash Flow: QAR2 billion, an 8% decrease due to accelerated CapEx spend.
Customer Base: Increased by 5% to 52 million, excluding Myanmar exit.
Data Center Revenue: QAR35.2 million with EBITDA at QAR13.4 million.
Fintech Revenue: Over QAR22 million, driven by international remittances.
Qatar EBITDA Margin: Improved by 1 percentage point to 53%.
Kuwait EBITDA Growth: Increased by 51%, with a margin of 34%.
Oman EBITDA Margin: Solid at 44% despite a 7% reduction in EBITDA.
Algeria Revenue and EBITDA Growth: Both increased by 12%, with an EBITDA margin of 42%.
Tunisia Revenue Growth: Increased by 4% in local currency; EBITDA margin at 39%.
Maldives EBITDA Margin: Improved by 1 percentage point to 55%.
Palestine Customer Base Growth: Increased by 6% to 1.5 million customers.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
Ooredoo QPSC (DSMD:ORDS) reported a 3% increase in revenue and a 2% growth in EBITDA, excluding the impact of the Myanmar exit.
The company maintained a strong EBITDA margin of 43% and achieved a 5% increase in net profit.
Ooredoo's data center business, rebranded as Syntys, is well-positioned for regional digital transformation, with 13 active data centers and plans for expansion.
The fintech vertical generated over QAR22 million in revenue, driven by international remittances, and holds a 20% market share in Qatar.
Ooredoo maintains a healthy balance sheet with a low leverage ratio of 0.6 times and strong liquidity of around QAR5.5 billion.
Negative Points
Revenue in Qatar decreased by 4% due to lower device sales, the impact of the data center carve-out, and non-recurring revenue from the AFC tournament.
Ooredoo Oman faced a 3% revenue decline due to high competition, leading to a 7% reduction in EBITDA.
The Maldives operation experienced a 1% revenue decrease due to competitive pressures in the prepaid market.
Free cash flow decreased by 8% due to accelerated CapEx spending on strategic projects.
The customer base in Qatar decreased by 3%, impacted by the inclusion of AFC-related connections in the previous year.
Q & A Highlights
Q: In some markets, margins have been volatile, particularly in Iraq and Kuwait. Can you explain the reasons behind this and provide insights into the expected margin trends? A: Aziz Fakhroo, Group CEO, explained that Q4 typically experiences seasonality, and in Iraq, additional operational expenses were incurred due to increased network traffic and preparations for a potential third operator's 5G launch. Abdulla Al-Zaman, Group CFO, noted that Kuwait's margins were affected by a one-off bad debt provision in 2024, but overall, Kuwait's performance remains solid.
