Chairman of Ooredoo, Sheikh Faisal bin Thani Al Thani (left), and Managing Director of Ooredoo, Aziz Aluthman Fakhroo.
Doha: Ooredoo Group announced yesterday net profit of QR1.1bn in 2020 and the Board proposed a cash dividend of QR0.25 per share. Group’s net profit attributable to Ooredoo shareholders decreased by 35 percent year-on-year in 2020 mainly due to lower EBITDA and one off gains in 2019 from the Indonesian tower sales. In fourth quarter (Q4) of 2020, the net profit was negatively impacted by foreign exchange losses mainly due to the devaluation of the Iraqi dinar and a one off impairment from an investment.
Revenue declined by 4 percent year-on-year to QR28.9bn in 2020, due to the COVID-19 pandemic impact, with a reduction in handset sales and roaming business as well as macroeconomic weakness in some of our markets. This was partially offset by growth in Indonesia, Myanmar and Palestine.
Data revenues account for more than 50 percent of total revenue driven by its data leadership and digital transformation initiatives across the countries it operates in. EBITDA declined by 6 percent year-on-year to QR12.1bn in 2020, impacted by lower revenues and challenging market conditions across most markets. The company maintains its focus on digitalization and cost optimisation, which has been reflected in a healthy EBITDA margin of 42 percent for FY 2020.
Ooredoo Group expanded its customer base by 3 percent to 121 million customers, boosted by additions in Iraq, Indonesia and Myanmar.
Commenting on the results, Chairman of Ooredoo, Sheikh Faisal bin Thani Al Thani, said: “Ooredoo Group demonstrated the resilience of its operations in 2020, delivering a net profit of QR1.1bn, maintaining healthy cash reserves and liquidity levels, and expanding its customer base despite of the challenging environment.
2020 was a year unlike any other, which disrupted lives and challenged organisations.”
“I am proud of the role that we played in keeping communities connected and the economy moving. Our focus on innovation and digitisation has enabled us to seamlessly serve our customers through our digital channels while allowing our staff to work from home in a safe and productive manner,” he said. “The global pandemic will have a lasting impact on customer expectations and the way people use technology. Ooredoo Group continues to invest in its digital transformation strategy and network capabilities to meet the evolving need of our customers and to help them unlock the true value of new technologies. I am pleased to announce that the Board of Directors will recommend the distribution of a cash dividend of QR0.25 per share at the annual general meeting in March 3, 2021,” he added.
Ooredoo Group reinforced its leadership as a digital enabler becoming the first operator to launch prepaid 5G internet in Kuwait, while in Tunisia it registered the fastest 4G mobile data speeds in the country. In Indonesia its network improvements were recognised at the “Opensignal Global Mobile Experience Award”, 2020 with a Global Rising Star award.
Managing Director of Ooredoo, Aziz Aluthman Fakhroo, said: “I am pleased to report a solid financial performance across our operations, in spite of the Covid-19 pandemic and the challenging macro-economic environment. Group revenues were QR28.9bn in 2020, down 4 percent compared to the previous year, due to macroeconomic weaknesses in some of our markets. Throughout the year, we remained focused on our cost optimisation strategy, which enabled us to maintain a robust EBITDA margin of 42 percent in 2020. EBITDA during the year was QR12.1bn, down slightly from QR12.8bn in the previous year due to the decline in revenues.”
“Ooredoo Qatar provided a solid performance in 2020 growing its customer base at strong EBITDA margin, despite a range of challenges caused by COVID-19. Indosat Ooredoo delivered a strong performance with revenues and EBITDA increasing year on year by 4 percent and 11 percent, respectively while Ooredoo Myanmar’s market leading infrastructure supported an increase in revenues, EBITDA and a 28 percent increase in its customer base. Ooredoo Tunisia reaffirmed its position as the number one telecom player by customer market share,” he added. “Ooredoo Group continues to witness strong demand for its product and services, as demonstrated by the 3 percent increase in our customer base to 121 million during these challenging times, supported by strong customer growth in Myanmar, Indonesia and Iraq,” he said.
Ooredoo Qatar delivered a solid performance in 2020, despite a range of challenges caused by the COVID-19 pandemic. Reported revenue stood at QR7bn (FY 2019: QR7.3bn), down 3 percent mainly as a result of the pandemic. EBITDA was QR3.7bn (FY 2019: QR4bn), 7 percent below FY 2019, with an EBITDA margin of 52 percent.
Customer numbers were 3.3 million by year-end in line with 2019, with the mobile customer base growing by 1 percent and the postpaid base growing by 10 percent compared to Q4 of 2019.
Support for the community remained a top priority, with extended network and telecom support provided to quarantine centres and hubs across the country. In addition, Ooredoo was also named one of 10 best brands in Qatar in efforts to combat COVID-19.
The company boosted the range of entertainment options for customers, launching an OSN Streaming App with postpaid services, a new version of Ooredoo tv app for Apple tv customers, and introducing Disney+ for Ooredoo ONE and Mobile Plans. The Ooredoo ONE ‘All-In-One’ Home Service support growth of 1.0% in the OTV customer base compared to Q4 of 2019.
