Ooredoo Group Revenue Rises By 2% To QR23.2Bn

Doha, Qatar: Ooredoo (“Ooredoo”) – Ticker: ORDS yesterday announced its financial results for the year ended 31 December 2023. The revenue grew ahead of FY 23 guidance target with an increase of 2% YoY to QR23 (2022: QR22) driven by sustained growth in Iraq, Algeria, Kuwait, and Maldives. This was partially offset by a decline in Revenue in Qatar, Tunisia as well as in Myanmar and Palestine (due to foreign exchange depreciation).

The net profit increased 28% YoY to QR3 (2022: QR2). Normalized net profit grew by 16% YoY to reach QR3, compared to QR2 in FY 2022 net profit is net profit adjusted for foreign exchange, impairments, and exceptional items (QR446m gain from the NMTC legal case, Meeza IPO gain of QR139m, QR56m gain on the disposal of towers and QR37m gain on data center carve out in Indonesia).

Commenting on the results, Sheikh Faisal bin Thani Al Thani, Chairman of Ooredoo, said:“Ooredoo strives to enhance people's digital lives and deliver value to its stakeholders. In 2023, we continued to provide best-in-class connectivity and deliver superior customer experience by investing in our capabilities and infrastructure. Revenue grew by 2% to QR23 while reported net profit increased by a healthy 28% to QR3bn, a historical high.

I am pleased to announce that the Board of Directors will recommend a cash dividend distribution of QR0.55 per share, in line with our sustainable and progressive dividend policy, at the Annual General Meeting in March.

Our success is facilitated by our ongoing digital transformation, which not only contributes to our resilience but also empowers us to capitalize on market opportunities and position ourselves for long-term sustainable growth. Our adaptability in navigating a dynamic market landscape ensures sustained success and attractive returns.

Looking forward, we remain dedicated to our strategic path that unlocks capital and enhances value for our stakeholders, solidifying our position as an industry leader.”

Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo Group said:“2023 was a noteworthy year. We improved our financial position and made substantial progress against our strategic priorities.

We delivered financial results in line with ourfull-year2023 guidance. Revenue grew by 2% to QR23. EBITDA increased by 4% to QR9 and the EBITDA margin expanded by1pp to 42%, supported by top line growth and disciplined approach to costs.

The growth for the year was driven by solid performances in Iraq, Kuwait, Algeria, and Maldives.

The Group achieved an all-time high reported Net Profit of QR3bn, up by 28% and strong normalized FCF generation of QR6, up 6%.

We announced the establishment of the region's largest independent tower company in partnership with Zain and TASC at a $2 valuation, marking a significant milestone.

These accomplishments are the result of teamwork, and I am immensely proud of my colleagues' dedication.

As we look ahead, we will continue to drive operational efficiency for profitability and cash generation while advancing our strategic priorities as we evolve toward becoming the leading digital infrastructure provider in the region.”

Ooredoo's focus on profitability led to an EBITDA of QR9, up by 4% YoY. EBITDA margin expanded by 1pp to 42% thanks to healthy service revenue growth and disciplined approach to cost control.

The strong profitability improvement in Iraq, Algeria, and Kuwait was partially offset by lower EBITDA in Qatar, Oman, and Tunisia.

Group CAPEX spend at QR2 for FY 2023, reflecting a 3% YoY growth.

Normalized Free Cash Flow increased by 6% YoY to QR6 supported by EBITDA expansion. Solid performances in Iraq, Kuwait, Algeria, and Maldives contributed positively to additional FCF generation in the year.

The Board will recommend the distribution of a cash dividend of QR0.55 per share at the Annual General Meeting, to be held in March 2024. This represents an increase of 28% YoY and a payout of 59% of normalized earnings and is 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 normalized earnings.

Ooredoo Qatar increased its customer base by 2% YoY (excluding the FIFA 2022 connections)to 3.0 million despite a challenging operating environment (softer economic activity and increased competition in the mobile segment).

Qatar delivered revenue of QR7,286m in 2023 (2022: QR7,960m). On a reported basis, this reflects an 8% decrease YoY as the FY 2022 base was bolstered by the World Cup.

During the year, the operation decided to scale down the low margin wholesale business and carved-out Ooredoo Financial Services. On a like-for-like basis excluding the FIFA impact, revenue remained flat.

EBITDA decreased by 6% YoY to QR3,603m due to a higher comparison base and one-off impacts. Normalizing for the aforementioned items and as well as one-off provisions, EBITDA declined by 1% YoY.

The operation sustained a solid EBITDA margin of 49%, up by 1pp YoY.

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