Ooredoo Group’s revenue for 2021 stood at QR30bn, registering a 4% increase compared with the same period in 2020 mainly driven by growth in Qatar, Indonesia, and Tunisia. Excluding FX impact, revenue increased 7%.
Group EBITDA for the period was QR13bn with a corresponding EBITDA margin of 44%, driven by growth in Indonesia, improving macroeconomic conditions in Kuwait, and increased customer confidence in Algeria. EBITDA growth rate stood at 8% and at 11%, excluding FX impact. Free cash flow increased by 30% to reach QR8.2bn.
Group net profit stood at QR47mn. The 96% reduction was mainly due to FX losses and impairments in Myanmar. The negative impact was partly offset by profit from the sale and leaseback of Indosat Ooredoo’s tower assets (QR1,000mn). Excluding these one-offs and FX impact, net profit had a growth of 61%.
Consolidated customer base at year-end exceeded 121mn due to strong performances in Indonesia, Oman, Algeria, and Iraq. The board recommended the distribution of a cash dividend of QR0.30per share. This recommendation is based on healthy balance sheet, adequate liquidity, and overall solid operational performance.
On December 28, 2021 Ooredoo Group and CK Hutchison announced the approval of the $6.0bn merger between the two businesses following an EGM. Vikram Sinha will serve as chief executive officer of the merged entity: Indosat Ooredoo Hutchison. The transaction was closed post-quarter on January 4, 2022.
On May 11, 2021, regulators approved Indosat Ooredoo’s sale and leaseback agreement with Edge Point Indonesia for more than 4,200 telecommunications towers. The transaction was valued at $750mn, making it one of the largest deals of its kind in Asia.
On November 23, 2021, Indosat Ooredoo and Google Cloud launched a strategic partnership to accelerate digitalisation across consumer and enterprise segments in Indonesia.
Post period, Asiacell was named ‘Fastest Mobile Network’ and ‘Best Mobile Coverage’ in Iraq by a leading independent technology research company. On September 30, 2021, Ooredoo Group announced title sponsorship of Qatar’s first-ever Formula 1 race, officially named the ‘Formula 1 Ooredoo Qatar Grand Prix’. On November 8, Ooredoo Qatar was named as official Middle East & Africa telecommunications operator of the 2022 FIFA World Cup and FIFA Arab Cup Qatar 2021.
Sheikh Faisal bin Thani al-Thani, chairman of Ooredoo, said: “Ooredoo Group ended 2021 demonstrating further resilience, as we reported solid results for the end of the year, driven by the ongoing implementation of our digital transformation and cost optimisation programmes in our core markets. Revenues increased to QR30bn, and our EBITDA margin improved to 44%, up from 42% for FY 2020. We are proud to report an improvement in our free cash flow by 30%.
“During 2021, we maintained our position as a digital enabler through rolling out innovative products to our customers and providing reliable connectivity across all the markets in which we operate, which subsequently resulted in increased customer confidence in our business.”
He added: “We are excited about our new partnership in Indonesia, where Indosat Ooredoo Hutchison will become a stronger number two player, a compelling value creation in a new world-class digital telecoms and internet company for Indonesia.
“Finally, I am pleased to announce that the board will recommend the distribution of a cash dividend of QR0.30 per share at the annual general meeting taking place on March 8.”
Aziz Aluthman Fakhroo, managing director of Ooredoo said: “We are pleased to announce a very strong business performance with revenue growth of 4% and even stronger EBITDA growth of 8%. Our successful transformation process resulted in an impressive free cash flow of QR8.2bn, an increase of 30%.
“Our net profit increased by 61%, excluding the FX impact and a one-off negative impairment in Myanmar that was partially offset by a gain from the Indonesian tower sale and leaseback transaction. Qatar, our home market, continues to deliver strong results with growth in revenue of 6% to QR7.5bn and a strong EBITDA margin of 52%.
“Further rollout of the 5G network combined with innovative new product offers had a positive impact on Ooredoo Kuwait’s performance with a slight increase in revenue to QR2.5bn. Ooredoo Algeria and Ooredoo Tunisia both reported top-line growth in local currency terms in 2021 of 8% and 6%, respectively. Ooredoo Oman’s customers increased by 2%.”
He added: “Asiacell was recognised as best mobile network operator in Iraq due to its rating as the fastest mobile network and the best mobile coverage by an independent third-party research company.
“Finally, Indosat Ooredoo had a stellar year with double-digit growth in revenue and EBITDA. The company reported an increase in revenue to QR8.0bn and an improved EBITDA margin of 49%, driven by cost optimisation initiatives. We look forward to reporting the further growth of the business in due course.”
Group net profit stood at QR47mn. The 96% reduction was mainly due to FX losses and impairments in Myanmar. The negative impact was partly offset by profit from the sale and leaseback of Indosat Ooredoo’s tower assets (QR1,000mn). Excluding these one-offs and FX impact, net profit had a growth of 61%.
Consolidated customer base at year-end exceeded 121mn due to strong performances in Indonesia, Oman, Algeria, and Iraq. The board recommended the distribution of a cash dividend of QR0.30per share. This recommendation is based on healthy balance sheet, adequate liquidity, and overall solid operational performance.
On December 28, 2021 Ooredoo Group and CK Hutchison announced the approval of the $6.0bn merger between the two businesses following an EGM. Vikram Sinha will serve as chief executive officer of the merged entity: Indosat Ooredoo Hutchison. The transaction was closed post-quarter on January 4, 2022.
On May 11, 2021, regulators approved Indosat Ooredoo’s sale and leaseback agreement with Edge Point Indonesia for more than 4,200 telecommunications towers. The transaction was valued at $750mn, making it one of the largest deals of its kind in Asia.
On November 23, 2021, Indosat Ooredoo and Google Cloud launched a strategic partnership to accelerate digitalisation across consumer and enterprise segments in Indonesia.
Post period, Asiacell was named ‘Fastest Mobile Network’ and ‘Best Mobile Coverage’ in Iraq by a leading independent technology research company. On September 30, 2021, Ooredoo Group announced title sponsorship of Qatar’s first-ever Formula 1 race, officially named the ‘Formula 1 Ooredoo Qatar Grand Prix’. On November 8, Ooredoo Qatar was named as official Middle East & Africa telecommunications operator of the 2022 FIFA World Cup and FIFA Arab Cup Qatar 2021.
Sheikh Faisal bin Thani al-Thani, chairman of Ooredoo, said: “Ooredoo Group ended 2021 demonstrating further resilience, as we reported solid results for the end of the year, driven by the ongoing implementation of our digital transformation and cost optimisation programmes in our core markets. Revenues increased to QR30bn, and our EBITDA margin improved to 44%, up from 42% for FY 2020. We are proud to report an improvement in our free cash flow by 30%.
“During 2021, we maintained our position as a digital enabler through rolling out innovative products to our customers and providing reliable connectivity across all the markets in which we operate, which subsequently resulted in increased customer confidence in our business.”
He added: “We are excited about our new partnership in Indonesia, where Indosat Ooredoo Hutchison will become a stronger number two player, a compelling value creation in a new world-class digital telecoms and internet company for Indonesia.
“Finally, I am pleased to announce that the board will recommend the distribution of a cash dividend of QR0.30 per share at the annual general meeting taking place on March 8.”
Aziz Aluthman Fakhroo, managing director of Ooredoo said: “We are pleased to announce a very strong business performance with revenue growth of 4% and even stronger EBITDA growth of 8%. Our successful transformation process resulted in an impressive free cash flow of QR8.2bn, an increase of 30%.
“Our net profit increased by 61%, excluding the FX impact and a one-off negative impairment in Myanmar that was partially offset by a gain from the Indonesian tower sale and leaseback transaction. Qatar, our home market, continues to deliver strong results with growth in revenue of 6% to QR7.5bn and a strong EBITDA margin of 52%.
“Further rollout of the 5G network combined with innovative new product offers had a positive impact on Ooredoo Kuwait’s performance with a slight increase in revenue to QR2.5bn. Ooredoo Algeria and Ooredoo Tunisia both reported top-line growth in local currency terms in 2021 of 8% and 6%, respectively. Ooredoo Oman’s customers increased by 2%.”
He added: “Asiacell was recognised as best mobile network operator in Iraq due to its rating as the fastest mobile network and the best mobile coverage by an independent third-party research company.
“Finally, Indosat Ooredoo had a stellar year with double-digit growth in revenue and EBITDA. The company reported an increase in revenue to QR8.0bn and an improved EBITDA margin of 49%, driven by cost optimisation initiatives. We look forward to reporting the further growth of the business in due course.”
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