Ooredoo Group proforma revenue up 4% to QR23bn in 2022; board proposes QR0.43 cash dividend

Ooredoo Group’s proforma revenue increased by 4% to reach QR22.7bn in 2022 compared to QR21.9bn in the previous year. The board has recommended the distribution of a cash dividend of QR0.43 per share.
Group normalised EBITDA for the period was QR9.1bn with a corresponding EBITDA margin of 40%. The 2% EBITDA drop was driven by higher cost of sales and OPEX in Iraq and higher staff cost at the group level mainly due the implementation of a new, future ready, unified operating platform ‘OneOoredoo’ and the ‘braveheart’ transformation project, partially offset by stronger EBITDA performances in other markets.
CAPEX for the period stood at QR2.7bn while normalised free cash flow increased 3% to reach QR6.4bn, driven by reduced CAPEX, which was partially offset by reduced EBITDA.
Normalised net profit for the period stood at QR2.8bn compared to QR2.2bn in 2021. Net profit has been normalised in the same manner as EBITDA, plus impairments and foreign exchange impact. Net profit in 2021 included two major one-off items – QR2.3bn Myanmar impairment loss and QR1.0bn gain from Indonesian tower sales.
Consolidated customer base stood at 56mn, driven by growth in most markets offset by a decline in Myanmar.
Commenting on the results, Sheikh Faisal bin Thani al-Thani, chairman of Ooredoo Group, said: “Ooredoo Group ended 2022 with outstanding results, boasting a revenue of QR22.7bn and a remarkable increase in normalised net profit. This success is a testament to our commitment to delivering robust connectivity, exceptional customer experiences, and maximising shareholder value.
“Furthermore, I am proud to announce that the company’s credit rating has been upgraded by S&P Global to A/A-1 with stable outlook. This reflects the company’s robust financial position. This upgrade is a testament to our commitment to delivering value to all our stakeholders and is a direct result of our improved free cash generation.
He added: “Driven by our digital transformation strategy, we are effectively capitalising on market opportunities and are confidently poised for further success. Our ability to remain agile and adapt to the rapidly evolving nature of the markets in which we operate positions us well for continued growth and strong returns.
“Finally, I am pleased to announce that the board will recommend the distribution of a cash dividend of QR0.43 per share at the annual general meeting taking place on March 7, 2023.”
Aziz Aluthman Fakhroo, managing director and CEO of Ooredoo Group, said: “I am thrilled to report a 27% increase of our normalised net profit reaching QR2.8bn – our best result since 2013. Our proforma revenues have experienced a remarkable growth of 4% to reach QR22.7bn. Our EBITDA margin remains strong at a robust 40%. This is a testament to the exceptionally challenging work and commitment of each one of our employees.”
He added: “Qatar, our home market, performed exceptionally, achieving record-breaking revenue at the conclusion of the FIFA World Cup, cementing its position as a world-leading telecommunications and ICT provider.
“Ooredoo Qatar delivered an impressive performance in 2022, with reported revenue up 7% to QR8.0bn. This was driven by growth in postpaid services, Ooredoo TV, ICT services, and increased sale of devices. We also initiated 2023 by welcoming the newly-appointed CEO, Sheikh Ali bin Jabor al-Thani, who will build on the strong foundations put in place by his predecessors and enable Ooredoo Qatar to continue to innovate and drive value creation in our home market.”
Ooredoo Oman delivered a solid performance in 2022 closing the year with a 5% growth in revenue, driven by growth in postpaid revenues, devices revenues, and wholesale revenues. EBITDA for the period increased by 5% to QR1.3bn, supported by a healthy EBITDA margin of 52%. Ooredoo Oman’s customer base increased to 3.0mn in 2022 compared to 2.9mn in 2021.
Ooredoo Kuwait reported a strong revenue of QR2.8bn in 2022 or an 11% year-on-year growth. A 15% rise in EBITDA was recorded driven by growth in higher service revenue, supported by stable EBITDA margin of 30%. Ooredoo Kuwait’s customer base increased by 8% to 2.7mn in 2022 compared to 2.5mn in 2021.
Asiacell – Iraq reported solid revenue, reaching QR3.7bn in 2022. However, EBITDA decreased by 6% mainly due to higher lease line and energy cost. Customer base experienced a 7% increase in 2022 as promotions, such as free data bundles, add-on packages, World Cup roaming bundles, as well as bundle cards were rolled out.
Ooredoo Palestine displayed robust revenue growth in 2022, reporting total revenues of QR421mn, a 3% increase driven by higher revenue from postpaid services. EBITDA for the period increased 4% to QR155mn underpinned by higher total revenues with an increased data revenue component.
Ooredoo Algeria ended 2022 with a stable EBITDA margin of 35%. Reported revenue was down 2% due to FX depreciation. In Algerian dinar, revenue increased by 3%. Ooredoo Algeria saw a 2% growth in its customer base to reach 13.0mn customers in 2022 compared to 12.8mn in 2021.
Ooredoo Tunisia's revenues stood at QR1.5bn in 2022 compared to QR1.6bn in 2021. In local currency, revenue increased by 1%. EBITDA was up by 4% in 2022 to reach QR651mn, which was driven by settlement of one-off costs in 2021. EBITDA margin rose five percentage points to 44% in 2022 from the previous year. Tunisian customer base increased by 3% to reach 7.1mn.
The Indosat Ooredoo Hutchison (IOH) strategic partnership was a tremendous success, resulting in IOH being recognised as a joint venture rather than a subsidiary. As a result, Ooredoo Group now only recognises a 33% contribution to its EBITDA from IOH’s profits.
Ooredoo Maldives closed 2022 with revenue of QR454mn, an increase of 8% compared to 2021. The company reported a 17% increase in EBITDA to QR244mn in 2022 compared to QR208mn in 2021.
Despite the ongoing shutdown of Internet services in parts of the Sagaing region and the tax increase on data services to 15%, Ooredoo Myanmar reported flat revenues of QR1.0bn and a 7% increase in EBITDA supported by strong ARPU growth. In local currency terms, revenue was up by 15%.