Ooredoo Group’s net profit attributable to the shareholders reached QR841m for the first half of 2019 (H1, 19), up by 22 percent compared to the same period last year. The year-on-year increase was partially aided by a favourable FX environment and offset by a negative IFRS16 impact on net profit.
The Group’s first half revenue stood at QR14.5bn, a decline of 4 percent compared to the same period last year, impacted by an industry wide shift from voice services to data services, as well as macroeconomic and currency weakness in some of our markets. Increased monetization of data business, with significant data growth coming from consumer and enterprise customers saw data revenue increase to 52 percent of Group revenue. Revenue from data contributed QR7.5bn, Ooredoo announced yesterday.
Commenting on the results, Sheikh Abdulla bin Mohammed bin Saud Al Thani, Chairman of Ooredoo, said: “We are making excellent progress with our digital strategy, whilst effectively managing our costs and overheads to support the growth of our business and long-term shareholder value generation.
“Ooredoo Group reported a solid set of results for the first half of the year with revenue of QR14.5bn and a 22 percent increase in net profit despite the pressure in the operating environment in our markets and industry challenges associated with the decline in voice revenues.
“We remain focused on providing reliable connectivity and innovative products to our customers and are proud to be at the forefront of the global 5G revolution. In our home market in Qatar, we now have around 100 live 5G sites as we prepare our network to cater to the future needs of our customers. We are proud to play our role in facilitating a tremendous opportunity that 5G will bring to people and business and have now launched a commercial 5G network in Kuwait as well.”
Also commenting on the results, Sheikh Saud bin Nasser Al Thani, Group Chief Executive Officer of Ooredoo, said: “During the period we invested further into our networks while at the same time improving the profitability of the company.
Sheikh Abdulla bin Mohammed bin Saud Al Thani, Chairman of Ooredoo and Sheikh Saud bin Nasser Al Thani (R), Group Chief Executive Officer of Ooredoo
Indosat Ooredoo, our second biggest market in terms of contribution to revenues, continues to turn around its business delivering robust growth across the board. This was underpinned by our strategic refresh designed to create a more loyal customer base with lower churn rates, following the implementation of regulation for SIM card registration. As a result Indosat Ooredoo reversed the trend and started to add new customers again.
In Oman, we grew our customer base by 5 percent as we launched exciting new features through our AI powered chatbot, whilst in Myanmar our customer base surged 19 percent despite increased competition from a fourth telecommunications operator. In Kuwait we launched 5G and we substantially grew our EBITDA supported by careful execution of our cost optimisation initiatives and enhanced operational efficiency. In Algeria, our data traffic more than doubled year on year, as we extended our 4G coverage to 58 percent of the population.
Looking ahead we remain optimistic about the opportunities available to Ooredoo Group, as the telecommunications industry transitions towards a more digital model. We believe that we have made the right investments and strategy to ensure long term value for our shareholders, customers and countries we operate in.” The Group customer base stood at 115million and increased sequentially by 2.7 million as Indosat Ooredoo reversed its trend and attracted new customers.
Ooredoo continued to lead in 5G adoption. At the 2019 Emir Cup final, Ooredoo Qatar showcased its 5G capabilities, achieving data speeds of up to 1.2 Gbps on 5G handsets and delivered more than 6 TB of mobile traffic during the event. Whilst Ooredoo Kuwait launched 5G commercially with a host of new 5G internet plans.
Network expansion and improvements remain a key driver of growth, Ooredoo Qatar maintained its fibre rollout programme which now covers 423 thousand homes in Qatar and Ooredoo Algeria extended its 4G network to cover 58 percent of the population, more than doubling the year on year data usage. Ooredoo Oman extended its 4G Supernet network to 25 new areas.
The launch of new digital initiatives continues to support customer acquisition and loyalty. Ooredoo Qatar launched ‘Ooredoo Sports’ - a conversational AI (artificial intelligence) platform that brings a new level of engagement to sports fans. Ooredoo Oman launched new features in its app through its AI powered Chatbot.
Ooredoo continues to be a data leader in its markets with 4G networks now available in 8 of Ooredoo’s 10 markets, while 5G is available in Qatar and Kuwait.
Ooredoo Qatar continued to hold a strong leadership position at the end of the first half of 2019, with both fixed line and mobile networks ranking among the fastest globally. Reported revenue was slightly lower at QR3.7bn (H1 ‘18: QR3.9bn), due to a fall in handset sales while EBITDA increased to QR2.1bn (H1 ‘18: QR2bn). Customer numbers remained stable at 3.3million.
EBITDA margin showed a healthy improvement year-on-year, rising to 57 percent (H1 ’18: 51 percent). EBTIDA improvements were driven by a successful and ongoing cost optimization program and a more favorable product mix and IFRS 16 impact.
Ooredoo Qatar leveraged its strong sporting heritage to extend its 5G leadership position during the period, conducting 5G trials with a ‘Virtual Stadium’ at Mall of Qatar and deploying a 5G-connected ambulance for the final of the Amir Cup in May.
The company now has around 100 live 5G sites. Ooredoo Qatar launched Ooredoo Sports, an innovative conversational Artificial Intelligence (AI) platform for sports fans that leverages AI and Augmented Reality technologies, and announced a two-year sponsorship of Qatar’s national football team.
The company deployed a diverse range of Internet of Things (IoT) solutions during the period and enabled the digital transformation of several leading organisations through partnerships and the launch of a new portfolio of business internet services offering enhanced speeds, security and additional value.
