Ooredoo Group announced a strong set of financial results despite macroeconomic weakness in some of their markets. The Doha-based company said its net profit increased by 16%to QAR 1.47 billion in the first nine months to 30 September from QAR 1.26 billion in the same period in 2019 in a more favorable foreign exchange environment.
Revenue declined by 3% year-on-year to QAR 21.41 billion from QAR 21.96 billion because of COVID-19, with a reduction in handset sales and roaming business. This was partially offset by growth in Indonesia.
Commenting on the results, Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said, “Ooredoo Group has been fortunate to have a well-diversified business – across geography and customer composition – in addition to a strong balance sheet, which has helped us maintain resilience during these challenging times.”
Data revenues accounted for more than 50% of total revenue, supported by data leadership and digital transformation initiatives in the countries where Ooredoo operates. EBITDA declined by 4% year-on-year to QAR 9.2 billion from QAR 9.66 billion in 2019, hit by lower revenues and higher cost of sale as well as challenging market conditions in Algeria, Kuwait, Iraq and Oman.
The company maintains its focus on digitalization and cost optimization, which is reflected in the EBITDA margin of 43%, compared with 44% in 2019.
Indosat Ooredoo’s strategy to offer simple, relevant, and transparent products continues to yield results in a highly competitive environment. The company’s revenues increased 6% to QAR 5.1 billion during the first nine months of 2020 compared to the same period last year, supported by strong mobile revenue. Indosat Ooredoo’s strong top line performance led to EBITDA growth of 11% for the nine-month period compared to the same period last year to QAR 2.4 billion, as the company increased efficiency and optimised costs. EBITDA margins for the period expanded to 46% compared 44% for the same period last year. Indosat Ooredoo’s customer base grew by 3% to 60.4 million, supported by the company’s robust digital channels and by its leading network infrastructure.
Ooredoo Myanmar continued to make good progress on its digital transformation, supporting the growth of its customer base to 13.1 million at the end of the first nine months of 2020, up 31% compared to the same period last year. Revenues for the nine-month period were QAR 872 million, up 8% compared of the same period last year, driven by favorable Foreign Exchange rates, increased data consumption which offset declines in voice revenue. EBITDA decreased 12% to QAR 198 million during the first nine months of 2020 compared to the same period last year, due to increased customer acquisition costs. Ooredoo Myanmar supported the nation’s efforts to combat COVID-19, by donating ventilators, defibrillators, patient monitors and other emergency medical equipment to the Yangon General Hospital.