Sheikh Abdulla and Marafih: Optimistic about the long-term value potential despite challenges.
Robust earnings in the domestic market, Oman and Kuwait helped Ooredoo report a consolidated net profit of QR1.76bn during January-September 2015.
Ooredoo Qatar’s net profit rose 8% to QR1.61bn on 12% expansion in revenues to QR5.9bn and 14% in customer base to 3.5mn. Data continued to be substantial driver of revenue and profit growth in Qatar.
However, consolidated net profit fell 15% year-on-year (y-o-y) on 3% fall in revenue to QR24.2bn; even as customer base grew 20% to 114.9mn.
“Excluding the foreign exchange (FX) impact, the group net profit would have been up 2% y-o-y,” an Ooredoo spokesman said.
The consolidated revenue was supported by growth in local currency terms in Qatar, Oman, Indonesia, Myanmar, Algeria, Kuwait and the Maldives. Excluding the FX impact, the group revenue would have increased by 4% y-o-y, he said, adding data revenue now represents 35% of the group’s total revenue.
“Revenue growth in local currency terms continued across our key markets demonstrating strong underlying performance of the group and significant market potential for us in our footprint. In addition, the group profit margins showed an improved trend in the third quarter of 2015,” Ooredoo chairman Sheikh Abdulla bin Mohamed bin Saud al-Thani said.
He said the group remains optimistic of the long term value potential despite some of the challenges such as currency depreciation in some of its markets and instability in Iraq.
“Our focus remains on our core business in consumer and enterprise segments. Ooredoo is executing data strategy effectively across its global footprint,” Dr Nasser Marafih, Ooredoo group chief executive said.
Ooredoo Oman’s net profit grew 10% to QR306mn on 12% jump in revenue to QR1.83bn on continued investments and robust growth in both mobile and fixed data. Customers grew 10% to 2.8mn.
Ooredoo Kuwait’s net profit soared 51% to QR105mn on 4% jump in revenues to QR1.69bn and customer base was 2.4mn.
Highlighting that the ongoing security situation in Iraq impacted Asiacell’s results, Ooredoo said net profit plummeted 82% to QR152mn on 23% fall in revenue to QR3.71bn. Customer base stood at 10.6mn.
Ooredoo Algeria’s net profit plunged 58% to QR187mn as revenue declined 12% to QR3.1bn; even as customer base expanded 14% to 13.1mn. It recorded 10% revenue growth in local currency terms while figures reported in riyal were impacted by 19% depreciation of the Algerian dinar in the period compared to last year.
Ooredoo Tunisia’s customer base was 7.5mn at the end of first half of 2015. Net profit tanked 40% to QR151mn. Impacted by 16% depreciation of the Tunisian dinar and challenging economic conditions, revenues fell 21% to QR1.41bn. Indosat grew its customer base 27% to 69mn but revenue fell 2% to QR5.37bn.
But 12% depreciation in Indonesian rupiah led it to book a net loss of QR301mn, which however lower by 20% y-o-y. Excluding the foreign exchange impact, Indosat would have recorded a net profit of QR220mn.
Ooredoo Myanmar, whose operations started in August 2014, generated QR782mn revenue. By the end of September 30, 2015, it had 4.8mn mobile customers.
