Ooredoo 2016 net profit soars 75% to KD 46.7mn

Group’s total customer base increases by 6% to 25 million; dividend of 85 fils recommended

22/02/2017 05:47 AST

National Mobile Telecommunications Company K.S.C.P — Ticker: NMTC (Ooredoo), a member of Ooredoo Group, announced today its financial results for the year 2016:

Financial Highlights:

* Total customer base increased by 6% to 25.2 million in 2016, compared to 23.8 million in 2015.

* Revenues for 2016 stood at KD 706.8 million, compared with KD 718.4 million for the same period in 2015, a decrease of 2%.

* EBITDA for 2016 was KD 240.2 million, compared to EBITDA of KD 250.2 million for the same period in 2015.

* The Net Profit attributable to NMTC in 2016 stood at KD 46.7 million compared with a Net Attributable Profit of KD 26.7 million for the same period in 2015. Good performances in the Maldives supported the increase. Additionally Net Profit in 2015 contained a non-cash KD 16.7 million impairment loss on investment in Tunisia due to the economic challenges in the market.

* The consolidated Earnings per Share was 93 fils compared to 53 fils per share earned for the same period last year.

* Ooredoo Kuwait (NMTC) acquisition of “FASTtelco”, a Kuwait based ISP, to offer advanced fixed broadband and mobile services finalized in October 2016.

* Ooredoo Maldives is preparing for an IPO on the local Stock Exchange in 2017.

Sheikh Saud Bin Nasser Al Thani, Chairman of the Board of Directors commented: “During the year 2016, Ooredoo consolidated its leading position across key markets, with customer base increasing 6% to reach more than 25 million. Ooredoo maintained a stable EBITDA of KD 240 million for the year ended 2016. In a highly competitive market, Ooredoo Kuwait cemented its position as a leading ICT company with the acquisition of “FASTtelco”, a Kuwait based ISP, through which it can expand its offer of advanced fixed broadband and mobile services.

Ooredoo Kuwait delivered a 5% increase in Revenues and maintained a healthy EBITDA of KD 51 million. A significant development for the year, Ooredoo Kuwait deployed more LTE sites and by the end of 2016 it had successfully covered the entire populated area of Kuwait. In Algeria the 6% growth in our customer base was supported by successful marketing strategies, network upgrades and deployments. With the launch of 4G and continued expansion of the 3G network, Ooredoo Algeria covered a vast majority of the population by the end of the year. Due to continued currency depreciation and challenges associated with the slowdown of tourism, Ooredoo Tunisia saw a slight decrease in Revenue.

Despite these challenges, we maintained our market leadership and grew our customer base by 6% to 8 million at the end of 2016. In local currency terms Revenue actually increased by 4% year on year. Ooredoo Maldives increased Revenues by 33% to reach KD 32 million and showed significant growth in profitability, EBITDA increased 56% to KD 17 million in 2016. Ooredoo Maldives is well positioned to continue delivering growth as it is preparing for the public listing in 2017 on the local stock exchange. Wataniya Palestine also strengthened its market position, growing customer numbers by 10% number serving now more than three quarters of a million customers. Wataniya Palestine maintained profitability and delivered Revenues of KD 25 million for the year ended 2016.”

The Chairman of the Board of Directors declared that the Board decided to submit a recommendation to the AGM to distribute cash dividends to the Company Shareholders valued 85% of the nominal value of share, which is equivalent to 85 Fils.”

Review of Operations

The Group’s operational performance can be summarized as follows:

Ooredoo — Kuwait

Ooredoo’s customer base in Kuwait stood at 2.3 million at the end of 2016 a 3% increase over the previous year. Revenues for 2016 were KD 197.8 million, an increase of 5% compared to KD 188.1 million in 2015. EBITDA was KD 51.0

Arab Times