Ooredoo reports QR913mn net profit in Q1

Ooredoo Group recorded a solid normalised net profit growth of 26% year-on-year (y-o-y) to end Q1 2024 at QR1.0bn from QR795mn. Normalised net profit is adjusted for foreign exchange, impairments, and exceptional items.

The group posted a net profit of QR913mn, down 5% y-o-y from QR961mn. Q1 2023 included the one-off gain from the NMTC legal case.

Revenue grew by a solid 4% y-o-y to QR5.9bn (Q1 2023, QR5.6bn) driven by the sustained commercial momentum in Iraq, Algeria, Kuwait, Maldives, and Tunisia. This was partially offset by the revenue decline in Qatar and Oman, along with the foreign exchange currency affecting Myanmar and the war impact in Palestine.

The Group ended the first quarter of 2024 with an EBITDA of QR2.5bn, a healthy growth of 6% y-o-y, demonstrating the strong operating leverage delivered by the business. EBITDA margin expanded by 1pp to 43%. The group’s performance was supported by enhanced profitability in Iraq, Algeria, Tunisia, and Maldives. This was partially offset by lower EBITDA in Qatar, Oman, Myanmar and Kuwait.

The group spent QR382mn CAPEX for Q1 2024, reflecting a 3% y-o-y decrease. The robust expansion of EBITDA generated an 11% y-o-y increase in normalised free cash flow to QR2.2bn. Iraq, Algeria, Tunisia, Maldives, and Oman contributed positively to the FCF generation in Q1 2024.

Ooredoo Group sustained its robust financial and liquidity position while maintaining an investment grade rating. As of March 31, 2024, the group’s net-debt-to-EBITDA ratio stood at 0.8x, which is below the board guidance of 1.5x to 2.5x.

The group’s financial position remains secure against interest rate risks as approximately 96% of the debt is structured on a fixed rate basis. Liquidity remains strong, with QR10.0bn in cash reserves and QR5.1bn available in undrawn facilities.

The group added 2mn customers y-o-y, up by 4%, to close Q1 2024 with a total of 58.5mn customers on the network. Including IOH, the customer base reached a total of 159.3mn.

Sheikh Faisal bin Thani al-Thani, chairman of Ooredoo, said: “Ooredoo commenced the first quarter of 2024 on a strong note, delivering revenue of QR5.9bn, up by 4% with an increase in normalised net profit of 26%. This performance is supported by our commitment to excellence across our global footprint with the delivery of best-in-class connectivity and exceptional customer experience.

“We are pleased to report that the recommendation by the board of directors to distribute a cash dividend of QR0.55 per share was approved by our shareholders during the AGM held on March 6, 2024.”

He added: “Looking ahead, Ooredoo will continue to deliver lasting value for our stakeholders through operational efficiencies and key strategic initiatives. Our clear strategy, seasoned leadership, and advanced networks position us as an industry leader.”

Aziz Aluthman Fakhroo, CEO of Ooredoo Group, said: “Ooredoo made a strong start to the year, achieving solid financial KPIs with continued customer growth. Ooredoo is progressing well against its strategic priorities. In our fintech operation, we are pleased to announce that in Oman, we have been granted a Payment Service Provider licence on April 28, 2024.

“The strong results achieved in the first quarter is credited to the Ooredoo teams’ diligent efforts and steadfast dedication to enhancing efficiency and profitability. Looking ahead, Ooredoo aims to build on its successful transformation to drive new revenue sources and sustain its strong financial position, delivering greater value and returns for our stakeholders, as we evolve toward becoming the leading digital infrastructure provider in the region.”