Doha: Ooredoo Group Q.P.S.C. (Ooredoo) reported QR30bn revenue for the full year ended 31 December 2021, an increase of 4 percent compared to the same period last year, mainly driven by growth in its home market Qatar, Indonesia, and Tunisia. Excluding FX impact, revenue increased 7 percent.
Group net profit attributable to shareholders stood at QR47m for the year ended 31 December 2021. The 96 percent reduction was mainly due to FX losses and impairments in Myanmar. The negative impact was partly offset by profit from the sale and leaseback of Indosat Ooredoo’s tower assets (QR1,000m). Excluding these one-offs and FX impact, Net Profit had growth of 61 percent.
Group EBITDA for the period was QR13bn with a corresponding EBITDA margin of 44 percent, driven by growth in Indonesia, improving macroeconomic conditions in Kuwait and increased customer confidence in Algeria. The EBITDA growth rate stood at 8 percent and at 11 percent excluding FX impact. Free Cash Flow increased by 30 percent to reach QR8.2bn
Consolidated customer base at year end exceeded 121m due to strong performances in Indonesia, Oman, Algeria, and Iraq. The Board recommends the distribution of a cash dividend of QR0.30 per share. This recommendation is based on healthy balance sheet, adequate liquidity, and overall solid operational performance.
Commenting on the results, Chairman of Ooredoo Sheikh Faisal bin Thani Al Thani, said: “Ooredoo Group ended 2021 demonstrating further resilience, as we reported solid results for the end of the year, driven by the ongoing implementation of our digital transformation and cost optimisation programmes in our core markets. Revenues increased to QR30bn, and our EBITDA margin improved to 44 percent, up from 42 percent for FY 2020. We are proud to report an improvement in our free cash flow by 30 percent.”
“During 2021, we maintained our position as a digital enabler through rolling out innovative products to our customers and providing reliable connectivity across all the markets in which we operate, which subsequently resulted in increased customer confidence in our business,” he said.
“We are excited about our new partnership in Indonesia, where Indosat Ooredoo Hutchison will become a stronger No.2 player, a compelling value creation in a new world-class digital telecoms and internet company for Indonesia,” he added. “Finally, I am pleased to announce that the Board will recommend the distribution of a cash dividend of QR0.30 per share at the annual general meeting, taking place on 8 March 2022,” he said.
Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director of Ooredoo said: “We are pleased to announce a very strong business performance with revenue growth of 4 percent and even stronger EBITDA growth of 8 percent. Our successful transformation process resulted in an impressive free cash flow of QR8.2bn, an increase of 30 percent.”
“Our Net Profit increased by 61 percent excluding the FX impact and a one-off negative impairment in Myanmar that was partially offset by a gain from the Indonesian tower sale and leaseback transaction. Qatar, our home market, continues to deliver strong results with growth in revenue of 6 percent to QR7.5bn and a strong EBITDA margin of 52 percent,”
“Further roll out of the 5G network combined with innovative new product offers had a positive impact on Ooredoo Kuwait’s performance with a slight increase in revenue to QR2.5bn. Ooredoo Algeria and Ooredoo Tunisia both reported top line growth in local currency terms in 2021, of 8 percent and 6 percent respectively. Ooredoo Oman’s customers increased by 2 percent,” he said.
“Asiacell was recognised as best mobile network operator in Iraq due to its rating as the fastest mobile network and the best mobile coverage by an independent third-party research company,” he added. “Finally, Indosat Ooredoo had a stellar year, with double digit growth in revenue and EBITDA. The Company reported an increase in revenue to QR8bn and an improved EBITDA margin of 49 percent, driven by cost optimisation initiatives. We look forward to reporting the further growth of the business in due course,” he said.
Ooredoo Group and CK Hutchison announced on December 28 last year, the approval of the $6bn merger between the two businesses following an EGM. The transaction was closed post quarter on January 4, 2022
On May 11, 2021, regulators approved Indosat Ooredoo’s sale and leaseback agreement with Edge Point Indonesia for more than 4,200 telecommunications towers. The transaction was valued at USD 750m, making it one of the largest deals of its kind in Asia. On November 23, Indosat Ooredoo and Google Cloud launched a strategic partnership to accelerate digitalization across consumer and enterprise segments in Indonesia.
Post period, Asiacell was named ‘Fastest Mobile Network’ and ‘Best Mobile Coverage’ in Iraq by a leading independent technology research company.
On September 30, Ooredoo Group announced title sponsorship of Qatar’s first-ever Formula 1 race, officially named the ‘Formula 1 Ooredoo Qatar Grand Prix’.
On November 8, Ooredoo Qatar was named as the official Middle East & Africa telecommunications operator of the FIFA World Cup Qatar 2022 and FIFA Arab Cup Qatar 2021.
Ooredoo Qatar delivered a robust performance in 2021, boosted by Qatar’s strong economy. Reported revenue was up 6 percent year-on-year to QR7.5bn, driven by growth in post-paid services, Ooredoo tv, ICT services and increased sale of devices. Full-year service revenue grew by 5 percent. EBITDA was QR3.8bn, 4 percent higher than 2020, with an EBITDA margin of 52 percent. Total customer numbers stood at 3.2m.
The company continued to innovate in the entertainment space, launching its first eSports tournament as part of its new eSports brand, Ooredoo Nation – Gamers’ Land. In addition, new channels and enhanced features helped to grow its Ooredoo TV customer base by 6 percent compared to Dec 2020.
Ooredoo Qatar joined the 5G Accelerator programme with leading technology companies to showcase Remote Video Sports Broadcasting during the FIFA Arab Cup 2021 and developed connectivity solutions for major events in Qatar such as the Formula 1 Ooredoo Qatar Grand Prix. It also announced a strategic partnership with Qatar Development Bank to support small-to-medium enterprises on their digital journey.
In the first half of 2021 the Communications Regulatory Authority’s Financial Sanctions Committee imposed QR3.5m to Ooredoo Qatar for violating instructions issued by the CRA. QR2m were fined due to Ooredoo’s non-compliance with the rules applicable to access the interconnection between licensed Service Providers and QR1.5m were fined due to Ooredoo’s non-compliance with its obligations to file with the CRA and get the CRA prior approval for tariffs for fixed telecom services.
Ooredoo Qatar, as consortium leader, launched the TASMU Platform, a partnership with the Ministry of Transport and Communication in conjunction with an international consortium under the patronage of His Excellency the Prime Minister and Minister of Interior.
Ooredoo Oman’s performance was further impacted by increasing competition and the entrant of the third operator in the market which led to a pronounced decline in revenue, with the prepaid segment being affected the most. The government-imposed lockdowns and the effects of the Tropical Cyclone ‘Shaheen’ resulted in a decline in revenue of 7 percent to QR2.3bn in 2021. Consequently, EBITDA for the year declined 10 percent to QR1.2bn compared to QR1.3bn in 2020.
Ooredoo Oman’s customer base increased to 2.9m for the year ended 30 December 2021, compared to 2.8m for the same period last year.
The gradual lift on COVID restrictions during the quarter as well as the further stabilisation of oil prices, positively impacted the Kuwaiti economy and Ooredoo Kuwait’s revenue and margins for the year. Furthermore, the company enhanced its 5G reach significantly by the end of 2021.
With this, the company reported a slight increase in revenue to QR2.5 billion for the year ended 31 December 2021. EBITDA increased 20 percent, supporting an improved EBITDA margin of 29 percent.
Asiacell reported revenue of QR3.7bn during 2021, a decrease of 9 percent mainly due to the devaluation of the Iraqi Dinar by 18 percent. In local currency terms, the revenue was up 9 percent and EBITDA increased 13 percent supporting a strong EBITDA margin of 46 percent driven by ongoing cost optimisation initiatives. The company witnessed a significant increase in data consumption after it extended its 4G coverage to 90 percent of the sites, launched 4G+ and increased LTE-enabled sites in the network.
Ooredoo Algeria continued to demonstrate resilience during 2021, despite a challenging market environment. Despite the continued devaluation in the Algerian Dinar, Ooredoo Algeria reported strong numbers. Revenues stood at QR2.3bn in 2021, which was up by 8 percent in local currency terms. EBITDA increased by 6 percent to QR786m compared to QR744m in 2020.
Customer base increased by 2 percent to 12.8 million in 2021 compared to 12.5 million in 2020. Despite challenging macroeconomic conditions, Ooredoo Tunisia remained resilient and maintained its solid financial position by reporting revenue growth of 7 percent to QR1.6bn, compared to QR1.5bn the previous year.
Indosat Ooredoo reported solid results and continued to outperform the market in 2021. Revenue increased by 14 percent, supported by an increase in EBITDA of 22 percent to QR3.9bn, driven by solid top line growth and ongoing cost optimisation initiatives.
The Company broadened its roll out of 5G in two major cities in Q4 – Makassar and Balikpapan. The successful network roll-out and capacity expansion resulted in nearly 9,000 4G and 35 5G base transceiver stations (BTS) by year-end.
Source: https://thepeninsulaqatar.com/article/15/02/2022/ooredoo-posts-qr30bn-revenue-for-2021
