(MENAFN- The Peninsula) The Peninsula
DOHA: Telecom major Ooredoo Group reported a solid QR7.8bn in revenue for the first quarter of 2018 (Q1 2018). The first quarter revenue was mainly driven by strong contributions from Iraq, Kuwait, Tunisia, Palestine and Myanmar offset by Indonesia and Algeria.
Group EBITDA stood at QR3.0bn with a corresponding EBITDA margin of 39 percent. Excluding Foreign Exchange translation impact, Group EBITDA decreased by 10 percent year-on-year compared to the reported 11 percent decrease.
Group Net Profit attributable to Ooredoo shareholders decreased by 17 percent to QR486m. The positive performance in Iraq and Myanmar was offset by market challenges in Indonesia and Algeria.
Increased monetization of data business, with significant data growth coming from consumer and enterprise customers saw data revenue increasing to 43 percent of Group revenue. Revenue from data contributed QR3.3bn in Q1 2018.
Ooredoo's Customer base stood solid in Q1,18, increasing 1 percent yoy to more than 150 million, driven by multiple customer acquisition activities in Iraq, Tunisia, Maldives and Palestine.
Ooredoo continues to be a data leader in its markets with 4G networks now available in 8 of Ooredoo's 10 markets. In Palestine, Wataniya Mobile made exceptional progress in customer acquisitions with the launch of its West Bank 3G network in January 2018, following the launch of services in the Gaza strip in October 2017
Customer base increased 55 percent to more than 1.2 million at the end of March 2018.
Commenting on the results, Sheikh Abdulla bin Mohammed bin Saud Al Thani, Chairman of Ooredoo, said: 'The start of 2018 saw good performances in some of our markets, however challenging market conditions and new regulations impacted the overall performance of the Group. Operationally, I am pleased to report that we maintained our pioneering position in providing customers with the latest telecom services and digital solutions. In all our markets we remain committed to helping customers, cities and countries meet their own digital transformation goals, thus enabling the development of citizens in emerging economies. We are proud to serve more than 150 million people. Following the successful launch of operations in Gaza last year, Wataniya Palestine commenced 3G services in the West Bank in January. The company continues to invest in 4.5G in anticipation of further growth opportunities. We are a well monetized data business, with QR 3.3bnin data revenue now accounting for 43 percent of our total revenues.
Sheikh Saud bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo said: 'The first Quarter 2018 saw a mixed set of results across our operations, with strong performances in Iraq, Kuwait, Tunisia, Palestine and Myanmar being more than offset by challenging market conditions in our biggest market in Indonesia and also in Algeria. Group Revenue was QR7.8bn and EBITDA margin stood at 39 percent. By focusing on digital growth and cost optimisation, Ooredoo Group delivered a net profit of QR486m. Our financial results for the period reflect the challenges of the markets we operate in. Market competition, certain regulatory and tax changes have adversely impacted our financial results for the first three months of the year.
Qatar and Indonesia continue to be Ooredoo's biggest contributors to group revenue, with QR2.0bn and QR1.5bn delivered in Q1 2018. Ooredoo Oman maintained a strong market position, while Ooredoo Kuwait reported revenue growth supported by handset sales of 39 percent in Q1 2018. Ooredoo Tunisia made good progress with 8percent revenue growth in local currency terms, defending its market leadership position. Asiacell in Iraq is benefitting from a more stable political situation and business returning to the liberated areas, revenue was up by 6 percent. In Algeria Ooredoo sustained its mobile data leadership and continued to deploy the 4G network across the country. In Myanmar it delivered record revenues and EBITDA.
Ooredoo Qatar reported revenue of QR2.0bn, while EBITDA was QR955m. Lower mobile voice and roaming revenues were partially offset by sales of Ooredoo TV and devices, reflecting the strong market appetite for new technology in Qatar. Customer numbers stood at 3.3million, following a concerted effort to clear-up customer records and remove inactive SIMs from the market.
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