(MENAFN- The Peninsula) The Peninsula
Doha: Ooredoo Group revenue rose two percent to QR5.6bn in the first quarter (Q1) 2023 according to the financial results released yesterday for the first three-month ended 31 March 2023.
Chairman of Ooredoo Sheikh Faisal bin Thani Al Thani said:“Ooredoo Group closed the first quarter of 2023 with outstanding results, boasting a revenue of QR5.6bn and a remarkable increase in normalised net profit. This success bears testament to our commitment to deliver robust connectivity, exceptional customer experiences, and maximizing stakeholder value.
Our digital transformation strategy has been instrumental in our success, enabling us to effectively capitalize on market opportunities and position ourselves well for further growth. Our ability to remain agile and adapt to the rapidly changing nature of the markets in which we operate, positions us well for sustained progress and strong returns.
We are pleased to report that the recommendation by the BoD to distribute a cash dividend of QR0.43 per share has been approved by our shareholders during the AGM held on 7 March 2023.
Looking ahead, we will continue to explore strategic options that will unlock significant capital and maximize stakeholder value.”
Managing Director of Ooredoo, Aziz Aluthman Fakhroo said:“I am delighted that our reported revenue has seen a healthy growth of 2 percent, reaching QR5.6bn. Our EBITDA margin improved by one percentage point to reach 43 percent which continues to demonstrate the solid operational execution as well as the dedication and hard work of all our employees, amidst many challenges. Our normalised net profit saw a noteworthy expansion of 15 percent.
Through the quarter, we have remained committed to delivering outstanding customer experiences, which truly reflects our Company's unwavering dedication to excellence.
In Q1 2023, Qatar, our primary market, has once again demonstrated its excellence as a leading telecommunications and ICT provider. Ooredoo Qatar achieved a 3 percent increase in revenue, reaching QR1.9bn. The Revenue uptick can be attributed to B2B fixed services, Ooredoo tv, Ooredoo Financial Services and handset sales.
Ooredoo Oman has delivered a 2 percent increase in Revenue in Q1 2023 backed by postpaid services, wholesale revenues, and devices. We are delighted to announce the appointment of Bassam Al Ibrahim as the new CEO of Ooredoo Oman, effective from 1 March 2023.
Ooredoo Qatar started of the quarter well and is setting the scene for a successful year, recording a YoY increase of 3 percent in revenue to QR1.9bn in Q1 2023.
This was driven by growth in B2B fixed services, Ooredoo tv, Ooredoo Financial Services and handset sales. EBITDA improved by 1 percent YoY with a healthy margin of 51 percent.
Ooredoo Qatar customer base stood at 3.4 million, up by 6 percent YoY with a slight decline of 250 thousand customers compared to Q4 2022, as anticipated after the World Cup.
Overall, Ooredoo Qatar kicked off the year with several transformations to its services, a first in Qatar. It launched Microsoft teams as a new service for its business customers and announced the upcoming readiness of innovative technology Fibre to the Room (FTTR), a new revolutionary solution for home internet customers.
Most recently, during the holy month of Ramadan, Ooredoo launched a few CSR activities under its campaign 'Connecting and Giving.' Ooredoo Oman's Revenue amounted to QR624m representing an increase of 2% YoY, driven by postpaid services, wholesale revenues, and devices. EBITDA for the period decreased by 8 percent YoY to QR294m impacted by lower margin.
Ooredoo Oman's customer base increased to 3.0 million representing a 7 percent growth YoY.
Ooredoo Oman received the“Most Trusted Brand 2022” award by Apex media, demonstrating Ooredoo's Oman's customer-centric focus bearing testament to operation's commitment to meet the evolving needs of its customers by offering both highly digitized and personalised experiences.
Roll out of 5G continued, with 5G population coverage reaching almost 40%.
Ooredoo Kuwait increased Q1 2023 revenue to QR709m with a growth of 2 percent YoY. Additionally, the Company recorded a 16 percent increase in EBITDA YoY, with the EBITDA margin reaching 32 percent. This solid performance is backed by the growth in revenue and effective cost management.
The case regarding number range has been resolved, with the court ruling in favor of NMTC. As a result, a total of KWD 43.8m (~QR510m) has been paid to NMTC, which is 92 percent owned by Ooredoo QPSC.
The customer base has grown 8 percent YoY, reaching a total of 2.8 million. This increase has benefited from the favorable macroeconomic conditions brought about by stable oil prices and export revenues.
In Iraq two key decisions were implemented by Government, namely the removal of the 20 percent VAT on any recharge and the strengthening of the official exchange rate.
Asiacell reported solid Revenue growth of 6 percent YoY in Q1 2023, reaching a total of QAR 938 million with an increase in EBITDA of 10 percent YoY due to growth from B2C and B2B revenue.
Ooredoo Palestine reported total revenue of QR101m in Q1 2023, a 4 percent decrease YoY. The decrease is attributable to the local currency depreciation (10 percent) against US dollar (reporting currency).
EBITDA for the period increased 2 percent YoY to QR41m. The increase was driven by disciplined cost control leading to a strong EBITDA margin of 40 percent.
Ooredoo Algeria ended Q1 2023 with a solid EBITDA margin of 39 percent reflecting management's focus on cost control measures. Strong appreciation of the Algerian Dinar helped deliver 5% higher revenue YoY.
Ooredoo Tunisia revenues came in at QR344m in Q1 2023, compared to QR380m in Q1 2022 representing a 9 percent drop YoY driven by a soft economic environment with reduced customer purchasing power.
The Tunisian dinar depreciated 6%, in local currency terms Revenue dropped 3%.
EBITDA was down by 39% in Q1 2023 impacted by pressure on top line and an increase in provisions for doubtful receivables. Tunisian customer base increased by 2 percent YoY to reach 7.1 million in Q1 2023.
It has been a year since the merger between Indosat Ooredoo and 3 Indonesia took place, officially forming Indosat Ooredoo Hutchison (IOH) on January 4th, 2022. This strategic partnership has been a tremendous success, resulting in IOH being recognized as a joint venture, rather than a subsidiary. As a result, Ooredoo Group now only recognizes a 33 percent contribution to its EBITDA from IOH's profits. IOH's performance has exceeded all expectations, delivering results even better than originally planned.
Ooredoo Maldives concluded Q1 2023 with a Revenue of QR121m, an increase of 5 percent YoY. Revenue growth was supported by mobile, fixed and roaming.
Despite the challenging business environment characterized by the ongoing shutdown of internet services in Upper Myanmar, high inflation rates and high electricity outages, Ooredoo Myanmar demonstrated resilience and achieved a 2 percent revenue growth YoY in local currency. The expansion was primarily fueled by the performance of the mobile revenue segment encompassing voice and data services, which was accomplished despite the unfavorable trading conditions.