Ooredoo reported a net profit of QR1.8bn in the first half of 2023 or a 20% expansion compared to QR1.5bn in H1 2022.
Normalised net profit, which takes into account various adjustments such as the foreign exchange impact, impairment, and two one-off items (QR446mn gain from the NMTC legal case and QR56mn gains from Indonesian tower sales), grew by 20% to QR1.6bn compared to QR1.4bn in H1 2022. These strong growth figures reflect the group’s continued focus on profitability and the effective management of its operations.
In H1 2023, revenue recorded a 3% growth reaching QR11.4bn compared to QR11.1bn in H1 2022. All revenue segments also recorded growth. Solid growth in Iraq, Algeria, Kuwait, and Maldives was partially offset by a decline in revenue from Qatar and Tunisia, as well as foreign exchange depreciation in Myanmar and Palestine.
EBITDA remained stable at QR4.8bn in H1 2023 with a corresponding EBITDA margin of 42%, benefiting from strong topline growth. Solid EBITDA improvement in Iraq, Kuwait, and Algeria were offset by a decrease in Qatar, Tunisia, Myanmar, and Oman’s EBITDA.
Ooredoo Group’s capital expenditure (Capex) reached QR873mn in H1 2023, decreasing by 10% compared to the same period last year. Notably, Capex expenditure for the period highlights the strategic investments made in the countries to drive growth and enhance our operations. Capex is expected to ramp up in the second half of the year.
In H1 2023, normalised free cash flow showed a notable year-on-year (y-o-y) increase of 7% (up by 17% in Q2) to QR3.9bn, driven by a higher normalised EBITDA and a lower Capex spend. Qatar, Iraq, Kuwait, Oman, and Algeria contributed to the free cash flow generated during the period, highlighting the strong financial performance and cash generation capabilities of these markets.
Ooredoo Group maintained a robust investment grade rating in H1 2023 with a net debt/EBITDA ratio of 1.1x, which is well below the board’s guidance range of 1.5x to 2.5x. Furthermore, the group’s financial position is protected from interest rate risks as approximately 94% of the debt is fixed rate and the company has sufficient cash balances to cover the floating rate portion of debt. Additionally, the company’s liquidity remains strong with QR8,652mn in cash reserves and QR4,636mn available in undrawn facilities.
The group’s consolidated customer base reached 56.2mn, representing a 3% y-o-y growth compared to 54.8mn in the same period last year. H1 2023 saw strong customer growth across all operations except for Qatar. Including IOH, Ooredoo recorded 156.2mn customers or a 3% increase.
Ooredoo Group is making steady progress towards achieving its 2023 targets. The revenue target is expected to remain stable, while the EBITDA margin is projected to be in the low 40% range. Additionally, the planned CAPEX for the year will increase in the second half of the year to reach approximately QR3bn.
Sheikh Faisal bin Thani al-Thani, chairman of Ooredoo, said: “Ooredoo Group concluded the first half of 2023 with an outstanding performance, recording revenue of QR11.4bn and a remarkable surge in normalised net profit reaching QR1.6bn.”
Aziz Aluthman Fakhroo, managing director and CEO of Ooredoo, said: “These strong set of results validates our strategy, which places operational excellence and customer service at its core. Notably, our normalised net profit increased 26% in Q2 y-o-y and we remain on track to achieve our guidance targets for 2023.”