Ooredoo Group net profit up 5% to QR960mn in Q1-2025

01/05/2025 03:33 AST

Ooredoo Group reported a QR960mn net profit in Q1-2025, up 5% year-on-year (y-o-y) from QR913mn. Net profit for the quarter accounts for the initial impact of Pillar 2 (QR59mn), in line with new global minimum tax requirements.

Normalised net profit was slightly lower by 4% y-o-y to QR962mn from QR1.0bn. Normalised net profit is adjusted for foreign exchange and impairment.

Group revenue for the quarter was at QR5.8bn, increasing by 3% y-o-y, excluding the impact of the Myanmar exit. Algeria, Iraq, Tunisia and Kuwait demonstrated sustained commercial momentum.

The group closed Q1-2025 with a 2% y-o-y increase in EBITDA, excluding the impact of the Myanmar exit, reaching QR2.5bn. EBITDA margin remained stable at 43%. Kuwait, Algeria and Iraq increased their contribution to the group's profitability.

The group deployed a total of QR538mn of CAPEX for the first quarter, reflecting an increase of 41% y-o-y, largely from higher investments in Iraq, Oman, Kuwait, Algeria and Tunisia. Free Cash Flow (FCF) decreased by 8% to QR2.0bn. The strong EBITDA performance was offset by an acceleration of targeted network projects.

Ooredoo Group maintained its healthy financial and liquidity position during Q1 2025 with investment-grade ratings. As at March 31, 2025, the group's Net-Debt-to-EBITDA ratio stood at 0.6x, below the board's guidance of 1.5x to 2.5x.

The group maintains a conservative approach, ensuring the fixed rate portion continues to dominate the floating rate debt, providing strong protection against interest rate volatility and enhancing stability.

The group has QR14.6bn in cash reserves (net of restricted cash) and QR5.4bn available in undrawn facilities, reflecting a strong liquidity position. Group customer base stood at 52.0mn, reflecting an increase of 5% y-o-y, excluding the impact of the Myanmar exit. Including IOH, the customer base reached a total of 147.4mn.

Ooredoo Group is making steady progress towards achieving its FY 2025 targets. Revenue is expected to grow between 2% to 3% with an EBITDA margin in the low 40s% range. Additionally, full-year CAPEX is expected to be within the range of QR4.5bn to QR5.0bn.

Ooredoo chairman Sheikh Faisal bin Thani al-Thani said, "Ooredoo Group has made a solid start to 2025. Excluding the impact of the Myanmar exit, first quarter revenue increased by 3% y-o-y to QR5.8bn. Healthy net profit growth of 5% y-o-y to QR960mn. Our results are in line with expectations, demonstrating that our multi-year transformation strategy is on track.

"Additionally, we are pleased to report that the recommendation by the board of directors to distribute a cash dividend of QR0.65 per share was approved by our shareholders during the AGM held on March 11, 2025."

He added: "As we pursue our vision to lead the region's digital infrastructure, our focus remains firmly on sustainable growth and long-term value creation. With strong financial foundations, clear strategic direction, and accelerating momentum, we are well-positioned to navigate change, capitalise on growth prospects, and deliver consistent returns for our shareholders."

Ooredoo Group CEO Aziz Aluthman Fakhroo said: "Ooredoo Group began the year on a strong note underpinned by sustained operational momentum across our markets with a focus on efficiencies and execution of key strategic initiatives. Excluding the impact of the Myanmar exit, revenue increased by 3% y-o-y to QR5.8bn and EBITDA grew by 2% to QR2.5bn. EBITDA margin was maintained at 43%.

"The group's performance during the quarter was bolstered by strong growth in Kuwait, Algeria and Iraq. The group's net profit increased by 5% to finish the quarter at QR960mn, while FCF remains healthy at QR2.0bn."

He added: "During the quarter, we successfully launched Syntys, a fully independent, carrier-neutral data centre company spun off from Ooredoo after over two years of strategic planning. Syntys is supported by Iron Mountain as a strategic shareholder to accelerate data centre expansion and support hyperscalers and enterprises in our region's rapidly evolving tech landscape. The achievements in the first quarter are owed to the Ooredoo teams' diligent efforts.

"Looking ahead, we remain confident in delivering on our full-year guidance and reinforcing our position as the region's leading digital infrastructure provider. Our strong customer base, broad network footprint, and healthy balance sheet provide us with the resilience and flexibility to continue investing in innovation and capture growth opportunities."

Ooredoo Qatar posts QR1,751mn revenue
Ooredoo Qatar reported a QR1,751mn revenue, down 4% year-on-year (y-o-y) mainly due to lower device sales (-29% y-o-y), the impact of the Asian Football Confederation (AFC) revenue in Q1-2024, and data centre carve out. Normalising for the AFC and data centre carve-out impact, revenue declined by 2% y-o-y.

EBITDA reached QR928mn for the first quarter, reflecting a 2% decrease y-o-y on a reported basis. Normalising for the AFC and data centre carve-out impact, EBITDA remained flat y-o-y.

EBITDA margin improved by 1pp, reaching a strong 53%, benefiting from ongoing efforts to improve operational efficiencies. The customer base decreased by 3% y-o-y to 3.0mn as Q1-2024 included AFC related connections.

Gulf Times