Ooredoo Reports Strong Revenue Growth, Despite Slashing Capex in H1

Ooredoo announced impressive financial results for the first half of 2023, showcasing a robust performance across its various markets.
Ooredoo 5G in MaldivesOoredoo’s revenue surged by 3 percent, reaching QAR 11.4 billion compared to QAR 11.1 billion in the same period last year. All revenue segments experienced growth, highlighting the company’s steady expansion. Notably, Ooredoo achieved remarkable revenue growth in Iraq, Algeria, Kuwait, and the Maldives, contributing significantly to the overall positive results.

Ooredoo’s customer base touched 3 million in Qatar, 3.1 million in Oman, 2.8 million in Kuwait, 17.1 million in Asiacell – Iraq; 1.4 million in Palestine; 13 million in Algeria; 6.9 million in Tunisia; 100 million at Indosat Ooredoo Hutchison; 400,000 in Maldives and 8.5 million in Myanmar.

However, Ooredoo faced some challenges in certain markets, experiencing a decline in revenue from Qatar and Tunisia. Furthermore, foreign exchange depreciation in Myanmar and Palestine also impacted the company’s financial performance.

Despite these challenges, Ooredoo’s net profit soared to QAR 1.8 billion in H1 2023, marking an impressive 20 percent increase compared to QAR 1.5 billion in the same period last year. The significant growth in net profit demonstrates the company’s effective strategies in managing costs and optimizing operational efficiency.

Ooredoo Group’s Capital Expenditure (Capex) for H1 2023 reached QAR 873 million, showcasing a 10 percent decrease from the same period last year. However, the company expects to ramp up Capex in the second half of the year, aiming for strategic investments to further strengthen its network and services.

Ooredoo’s Capex reached QR 166.9 million in Qatar, QR 163.5 million in Iraq, QR 176.7 million in Oman, QR 16.9 million in Myanmar, QR 346.2 million in Wataniya, QR 72.2 million Kuwait, QR 105.3 million in Tunisia, QR 124.8 million in Algeria, QR 29.7 million in Maldives and QR 14.1 million in Palestine.

The telecommunications giant’s customer base also witnessed steady growth, reaching 56.2 million customers in H1 2023. This represents a remarkable 3 percent increase compared to 54.8 million customers during the same period last year, reflecting Ooredoo’s successful efforts to attract and retain customers in its markets.

Looking ahead, Ooredoo aims to maintain stable revenue targets while projecting the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin to be in the low 40 percent range. Additionally, the company plans to increase its Capital Expenditure for the year to approximately QAR 3 billion, with a strong focus on enhancing its infrastructure and expanding its service offerings.

Ali Al Kuwari, Group CEO of Ooredoo, expressed his satisfaction with the company’s performance and remains optimistic about the future. He stated, “We are delighted to report such positive results for the first half of 2023. Ooredoo remains committed to delivering innovative and high-quality services to our customers, ensuring sustained growth and profitability.”

The company’s consistent financial growth and expansion highlight its position as a market leader in the telecommunications sector, with a strong foundation for continued success in the coming months and beyond.