In Q4, 2020 the net profit was “negatively impacted” by foreign exchange losses mainly due to the devaluation of the Iraqi dinar and a one-off impairment from an investment, Ooredoo said while announcing its financial results for 2020.
Revenue declined by 4% year-on-year to QR28.9bn in 2020, due to the Covid-19 pandemic impact, with a reduction in handset sales and roaming business as well as macroeconomic weakness in some of its markets. This was partially offset by growth in Indonesia, Myanmar and Palestine.
EBITDA declined by 6% year-on-year to QR12.1bn in 2020, impacted by lower revenues and challenging market conditions across most markets. The company said it maintains its focus on digitalisation and cost optimisation, which has been reflected in a healthy EBITDA margin of 42% for FY 2020.
Ooredoo Group expanded its customer base by 3% to 121mn customers, boosted by additions in Iraq, Indonesia and Myanmar.
The Group maintains healthy cash reserves and liquidity levels, and with a net profit of QR1.1bn, the board of directors has recommended the distribution of a cash dividend of QR0.25 per share.
On the results, Ooredoo chairman HE Sheikh Faisal bin Thani al-Thani, said, “Ooredoo Group demonstrated the resilience of its operations in 2020, delivering a net profit of QR1.1bn, maintaining healthy cash reserves and liquidity levels, and expanding its customer base despite of the challenging environment. 2020 was a year unlike any other, which disrupted lives and challenged organisations.
“I am proud of the role that we played in keeping communities connected and the economy moving. Our focus on innovation and digitisation has enabled us to seamlessly serve our customers through our digital channels while allowing our staff to work from home in a safe and productive manner.
“The global pandemic will have a lasting impact on customer expectations and the way people use technology. Ooredoo Group continues to invest in its digital transformation strategy and network capabilities to meet the evolving need of our customers and to help them unlock the true value of new technologies.
“I am pleased to announce that the board of directors will recommend the distribution of a cash dividend of QR0.25 per share at the annual general meeting in 3rd March 2021.”
Also commenting on the results, Ooredoo managing director Aziz Aluthman Fakhroo said, “I am pleased to report a solid financial performance across our operations, in spite of the Covid-19 pandemic and the challenging macro-economic environment. Group revenues were QR28.9bn in 2020, down 4% compared to the previous year, due to macroeconomic weaknesses in some of our markets.
“Throughout the year, we remained focused on our cost optimisation strategy, which enabled us to maintain a robust EBITDA margin of 42% in 2020. EBITDA during the year was QR12.1bn, down slightly from QR12.8bn in the previous year due to the decline in revenues. Net profit for the year declined to QR1.1bn, mainly due to lower EBITDA and to one off gains from the Indonesian tower sales in 2019. Ooredoo Group continues to witness strong demand for its product and services, as demonstrated by the 3% increase in our customer base to 121mn during these challenging times, supported by strong customer growth in Myanmar, Indonesia and Iraq.”
Ooredoo Qatar delivers ‘solid’ performance in 2020; customer numbers at 3.3mn by year-end
Ooredoo Qatar delivered a “solid” performance in 2020, despite a range of challenges caused by the Covid-19 pandemic.
Reported revenue stood at QR7bn (FY 2019: QR7.3bn), down 3% mainly as a result of the pandemic.
EBITDA was QR3.7bn (FY 2019: QR4bn), 7% below FY 2019, with an EBITDA margin of 52%.
Following a service disruption during the period, customers were provided with a 50% discount on mobile bills as compensation, impacting the Q4 results, Ooredoo said.
Customer numbers were 3.3mn by year-end in line with 2019, with the mobile customer base growing by 1% and the post-paid base growing by 10% compared to Q4 2019.
Ooredoo said, “Support for the community remained a top priority, with extended network and telecom support provided to quarantine centres and hubs across the country. In addition, Ooredoo was also named one of 10 best brands in Qatar in efforts to combat Covid-19.”
The company boosted the range of entertainment options for customers, launching an OSN Streaming App with postpaid services, a new version of Ooredoo tv app for Apple tv customers, and introducing Disney+ for Ooredoo ONE and Mobile Plans.
The Ooredoo ONE ‘All-In-One’ Home Service support posted growth of 1% in the OTV customer base compared to Q4, 2019.
Ooredoo Qatar continues to work with the Ministry of Transport and Communications on the ‘Smart Qatar Central Platform,’ a key project for Qatar’s Vision 2030, making important progress during the year.
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