(MENAFN- The Peninsula) The Peninsula
DOHA: Ooredoo Group yesterday announced revenue of QR29.9bn and net profit of QR1.7bn in 2019. Group EBITDA increased by five percent year-on-year to QR12.8bn, with a corresponding EBITDA margin of 43 percent, driven by efficiency programmes in some operating companies and a positive impact from the implementation of the new IFRS 16 accounting standard.
Commenting on the results, 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, he added.
'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, he said.
The company said that reported group revenue was stable at QR29.9bn, 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 the markets.
The company said that group net profit attributable to Ooredoo shareholders increased by 10 percent to QR1.7bn in 2019, compared to last year. Growth was driven by an increase in EBITDA, a more favourable 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.
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 QR29.9bn 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, he added.
The Board has recommended the distribution of a cash dividend of QR0.25 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 percent to 60 percent of normalized earnings.
The Group customer base was 117 million, up by 2 percent compared to 2018, mainly driven by new customers in Indonesia, Myanmar and Kuwait.
Ooredoo Qatar delivered a steady performance in 2019, building on its global leadership in 5G services to provide an excellent online experience for customers. Revenue stood at QR7.3bn, impacted by a fall in handset sales but enhanced by business-to-business growth. Ooredoo Qatar reported stable EBITDA of QR4.bn with an increased EBITDA margin of 54 percent. Customer numbers were 3.3 million by year-end in line with 2018.
Ooredoo Qatar's strong 5G presence continued to be well received by customers, while an enhanced portfolio of digital services contributed to a growth in post-paid customers. The new Ooredoo ONE ‘all-in-one' home service increased the number of digital entertainment customers.
A focus on cost optimization, through multiple initiatives and further digitization, helped to boost efficiency throughout 2019. The increasing range of online and digital channels for self-service and self-care made it easier for customers to find, buy and use Ooredoo services in Qatar.
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