Doha, Qatar: Ooredoo Q.P.S.C. (“Ooredoo”) – Ticker: ORDS, has released its financial results for the nine-month period ending September 30, 2024.
Key Highlights for 9M 2024:
- Revenue increased by 2% to QAR 17.7 billion.
- EBITDA grew by 4% to QAR 7.7 billion.
- EBITDA margin rose to 44%, up by one percentage point.
- Normalized Net Profit reached QAR 2.9 billion, an increase of 15%.
- Capital expenditure (CAPEX) amounted to QAR 1.9 billion.
- The customer base totaled 149.4 million (including Indosat Ooredoo Hutchison and excluding Myanmar).
- Secured QAR 2 billion in a 10-year facility to accelerate the expansion of the data center business.
- Following the period, Ooredoo issued a USD 500 million, 10-year bond with a record-tight spread to address upcoming maturity.
The disposal of Ooredoo Myanmar operations was completed on May 31, 2024, with Ooredoo Group’s financial results for 9M 2024 reflecting Myanmar’s results only until that date.
In commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, stated: “Ooredoo Group achieved revenue growth of 2% to QAR 17.7 billion and a healthy 15% increase in normalized Net Profit during the first nine months of 2024. Our operational transformation initiatives continue to yield positive outcomes, focusing on high-value assets and sustainable growth across our markets.”
He further emphasized the successful acquisition of funds through bank financing and long-term bond issuance, reinforcing Ooredoo’s reputation as a secure and reliable investment option. As Ooredoo strategically evolves into a leading digital infrastructure provider in the region, the company will continue to prioritize efficiency and value creation.
Aziz Aluthman Fakhroo, CEO of Ooredoo Group, added: “Ooredoo Group demonstrated a robust performance during Q3 2024, with growth across key financial metrics. Our commitment to operational efficiencies has driven profitability, resulting in a 4% increase in EBITDA and a strong performance across multiple markets, including Iraq, Algeria, Qatar, Tunisia, and the Maldives.”
Ooredoo is advancing its journey toward becoming the MENA region’s leading digital infrastructure provider, having secured QAR 2 billion to accelerate the expansion of its data center and AI business. This financing will help separate existing data center assets from telecom operations, focusing on boosting capacity and upgrading infrastructure in response to rising demand.
After the quarter closed, Ooredoo successfully completed a historic, oversubscribed USD 500 million international bond issuance, achieving the narrowest spread over 10-year U.S. Treasuries in the company’s history. The strong demand reflects investor confidence in Ooredoo’s strategy and financial performance.
Strategic Review:
Ooredoo remains committed to its strategy based on five key pillars: delivering exceptional customer experience, empowering talent, driving innovation, fortifying core operations, and maintaining a value-focused portfolio. The company provides exposure to dynamic growth markets and aims to enhance shareholder value through strategic growth initiatives.
TowerCo and Data Centers:
In December 2023, Ooredoo Group announced a partnership with Zain Group and TASC Towers Holding to create the largest tower company in the MENA region, with transactions expected to finalize within 18 to 24 months. Ooredoo has also established a carrier-neutral data center company and secured a QAR 2 billion financing deal to facilitate data center expansion, marking a significant milestone in Qatar’s tech industry.
Fintech Initiatives:
Ooredoo Financial Technology International (OFTI), its fintech arm, is dedicated to advancing financial inclusion. OFTI holds a significant market share in international remittances and has launched the ‘walletii by Ooredoo’ mobile money app, aiming to build an integrated marketplace to capture untapped potential in the MENA digital payment market.
Financial Performance:
Group revenue increased by 2% year-over-year to QAR 17.7 billion, driven by strong performance in Iraq, Algeria, Kuwait, Tunisia, and the Maldives. EBITDA rose by 4% to QAR 7.7 billion, while the normalised net profit grew by 15% to QAR 2.9 billion.
Ooredoo’s capital expenditure rose to QAR 1.9 billion, marking a 22% increase, primarily due to investments across multiple markets. The company maintains a strong financial position with a Net-Debt-to-EBITDA ratio of 0.6x and substantial liquidity, including QAR 12.4 billion in cash reserves.
Ooredoo’s customer base decreased by 11% year-over-year to 50.7 million customers for 9M 2024 (excluding Myanmar), with an overall total of 149.4 million, up by 1%.
Operating Companies Highlights:
- Ooredoo Qatar: Revenue decreased by 4% year-over-year to QAR 5.3 billion. EBITDA grew by 4% to QAR 2.8 billion, with a margin of 53%. Customer base increased by 1% to 3.0 million.
- Ooredoo Kuwait: Revenue grew by 6% year-over-year to QAR 2.3 billion, while EBITDA decreased by 15% due to one-off provisions. Customer base remained stable at 2.9 million.
- Ooredoo Oman: Revenue fell by 2% to QAR 1.8 billion, with a 6% decrease in EBITDA. Customer base closed at 2.8 million.
- Asiacell – Iraq: Revenue increased by 19% to QAR 3.8 billion, and EBITDA grew by 23%. Customer base reached 18.6 million.
- Ooredoo Palestine: Customer base increased by 8% to 1.5 million, while revenue decreased by 2% due to challenging conditions.
- Ooredoo Algeria: Revenue grew by 16% to QAR 2.1 billion, and EBITDA expanded by 24%. Customer base increased by 10% to 14.5 million.
- Ooredoo Tunisia: Revenue rose by 4% to QAR 1.1 billion, and EBITDA increased by 13%. Customer base decreased by 4% to 7.0 million.
- Indosat Ooredoo Hutchison (IOH): Achieved a 12% increase in revenue and a 15% increase in EBITDA.
- Ooredoo Maldives: Revenue increased by 6% to QAR 387 million, with customer base rising by 2% to 399,000.
About Ooredoo: Ooredoo is a global communications company operating across the Middle East, North Africa, and Southeast Asia, serving consumers and businesses in nine countries. Its shares are listed on the Qatar Stock Exchange and the Abu Dhabi Securities Exchange.
