Ooredoo Group Achieves Strong Growth in First Half 2023

Doha, Qatar: Ooredoo Q.P.S.C. ("Ooredoo"), a leading telecommunications company, has released its financial results for the first six months ending June 30, 2023. During this period, the company demonstrated impressive growth with a 3% increase in revenue, reaching QR11.4 billion compared to QR11.1 billion in the same period last year. All revenue segments experienced positive growth, showcasing the company robust performance.

The remarkable financial performance is highlighted by a solid net profit of QR1.8 billion, marking a substantial 20% YoY expansion compared to QR1.5 billion in H1 2022. Similarly, the normalized net profit, which considers adjustments such as foreign exchange impact and other factors, exhibited a 20% YoY growth, reaching QR1.6 billion, compared to QR1.4 billion in H1 2022. These outstanding figures underscore Ooredoo unwavering commitment to profitability and efficient operational management.

Throughout H1 2023, the company maintained a stable EBITDA of QR4.8 billion, with a corresponding EBITDA margin of 42%, benefiting from robust revenue growth. Notable EBITDA improvements were observed in Iraq, Kuwait, and Algeria, although a decline was noted in Qatar, Tunisia, Myanmar, and Oman.

Ooredoo Group strategic investments were reflected in its CAPEX expenditure, which reached QR873 million in H1 2023, showing a 10% decrease compared to the previous year. This investment emphasizes the company dedication to driving growth and enhancing operations in its targeted markets. Anticipated CAPEX increases are expected in the latter half of the year.

Commenting on the results, Sheikh Faisal bin Thani Al Thani, Chairman of Ooredoo, expressed his satisfaction: "Ooredoo Group exceptional performance in the first half of 2023, with revenue of QR11.4 billion and normalized Net Profit reaching QR1.6 billion, underscores our commitment to providing robust connectivity, outstanding customer experiences, and value creation for our stakeholders."

Aziz Aluthman Fakhroo, Managing Director and CEO of Ooredoo, also highlighted the company strategy-driven success: "Our strategy, centered on operational excellence and exceptional customer service, has yielded strong results. Notably, our normalized net profit increased by 26% in Q2 YoY, keeping us on track to achieve our 2023 guidance targets."

Ooredoo Group focus on fiscal strength was evident in its normalized free cash flow, which saw a notable 7% YoY increase, reaching QR3.9 billion, driven by higher normalized EBITDA and disciplined CAPEX management. Strong financial performance was observed in Qatar, Iraq, Kuwait, Oman, and Algeria.

Maintaining its commitment to financial prudence, Ooredoo Group upheld a robust investment grade rating with a Net Debt/EBITDA ratio of 1.1x, well below the board guidance range. The company liquidity remained strong, boasting QR8,652 million in cash reserves and QR4,636 million available in undrawn facilities.

Ooredoo Group consolidated customer base reached 56.2 million, reflecting a 3% YoY growth. Notably, the company continued its progress toward 2023 targets, with stable revenue expectations and an EBITDA margin projected in the low 40% range. The planned CAPEX for the year is set to increase in the second half, reaching approximately QR3 billion.

Throughout the first half of 2023, Ooredoo Group operating companies (OpCos) demonstrated notable achievements. Ooredoo Kuwait received recognition at the Asian Telecom Awards 2023, Ooredoo Palestine welcomed a new Chief Executive Officer, Ooredoo Algeria displayed strong revenue growth, and Ooredoo Oman made strides in digitalization and technology.

Amidst a competitive landscape, Ooredoo Oman achieved a 1% YoY revenue increase, supported by higher device sales and ICT/IOT revenue. Ooredoo Kuwait performance showcased revenue growth of 4%, driven by strong economic conditions and strategic initiatives.

Asiacell in Iraq achieved substantial revenue growth of 16%, attributed to increased data revenue. Ooredoo Palestine demonstrated disciplined cost control measures, resulting in EBITDA growth of 5%. Ooredoo Tunisia, however, experienced a decline in revenues due to changing market trends.

The successful merger between Indosat Ooredoo and 3 Indonesia formed Indosat Ooredoo Hutchison (IOH), surpassing expectations and positioning IOH as a joint venture. Ooredoo Maldives achieved positive results, with revenue growth of 7% and improved EBITDA.

Ooredoo Myanmar resilient performance was marked by a 4% YoY revenue growth despite challenging circumstances. The company dedication to sustainability was also showcased through its recycling program and CSR initiatives.

In conclusion, Ooredoo Group strong financial performance, strategic investments, and commitment to innovation position it for continued growth and success in the telecommunications industry.