Ooredoo Q1 profit up 27pc to top $42m

25/04/2017 07:16 AST

Telecom provider Ooredoo posted a net profit of KD12.9 million ($42.3 million) for the first quarter of the year compared with KD10.2 million for the same period in 2016, marking an increase of 27 per cent.

Revenues for Q1 2017 stood at KD169.0million, compared with KD175.3 million for the same period in 2016, representing a decrease of4 per cent.

Consolidated customer base increased by 5 per cent to 25.4 million in Q1 2017, compared to24.1 million for the same period in 2016. EBITDA for Q1 2017 was KD64.9million, compared to EBITDA of KD56.9 million for the same period in 2016.

Ooredoo Maldives plans to proceed with a listing of its shares on the Maldives Stock Exchange. The offering will represent up to 40 per cent of the company’s share for subscription and is expected to open for subscription on April 30, a statement said.

Sheikh Saud Bin Nasser Al Thani, chairman of the Board of Directors said: “Despite a highly competitive environment, Ooredoo increased the customer base by 5 per cent to reach 25 million, testament to the company’s award-winning network, a wide range of competitive products and good customer service. Ooredoo grew profitability levels during Q1 2017, with net profit increasing by 27 per cent to reach KD13 million. Growth for the period was mainly supported by our performance in Ooredoo Algeria and Ooredoo Maldives.”

“Driven by improved efficiency and cost optimisation initiatives, Ooredoo increased EBITDA by 14 per cent to reach KD65 million and maintained a healthy EBITDA margin of 38 per cent for the quarter ended March 31. “Capitalizing on last year’s launch of 4G and further expansion of the 3G network, Ooredoo Algeria increased its customer base to almost 14 million customers up by 5 per cent over Q1 2016. Ooredoo Algeria also maintained a good grasp on operational efficiencies, increasing EBITDA by 14 per cent to reach KD33.4 million.

“Ooredoo Maldives delivered a strong set of results, increasing revenues by 14 per cent to reach KD9.5 million and showed significant growth in profitability, with EBITDA up 20 per cent to KD5.6 million in Q1 2017. Ooredoo Maldives is well positioned to continue delivering growth as it is preparing to list on the local stock exchange at the end of this month,” he added.

Ooredoo Kuwait’s customer base in Kuwait stood at 2.3 million at the end of Q1 2017, representing a 2 per cent decrease compared to the same period in 2016. Revenues for Q1 2017 were KD47.8million, a decrease of4 per cent compared to KD50.0 million in 2016. EBITDA was KD12.4 million versus EBITDA for Q1 2016 of KD10.2million.

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