Telecom operator Ooredo said it reported lower EBITDA and net profit in the first quarter of 2018 due to a lower Algerian contribution due to a weak economic environment and higher taxes.
Ooredo has reported revenue of KWD 174.6 million (+3 percent), EBITDA of KWD 55.3 million (KWD 64.9 million) and net profit of KWD 9.2 million (KWD 12.9 million) in Q1 2018.
Ooredo said its customer base increased 2 percent to 25.8 million in Q1 2018, compared to 25.4 million in Q1 2017.
Ooredo Chairman Sheikh Saud Bin Nasser Al Thani said: “We’ve increased our customer base by 2 percent and we now proudly serve almost 26 million customers.”
Ooredoo’s customer base in Kuwait stood at 2.2 million in Q1 2018, representing a 5 percent decrease due to competition and weak market conditions. Revenues for Q1 2018 were KWD 65.5 million (+37 percent). Higher handset sales led to an increase in revenue, while at the same time negatively impacting margins. EBITDA was KWD 11.8 million, slightly lower than KWD 12.4 million in Q1 2017.
Ooredoo’s customer base in Tunisia reached 8.5 million (+7 percent). Revenues were stable at KWD 31.9 million in Q1 2018, compared to KWD 31.8 million for the same period in 2017. EBITDA was KWD 11.9 million compared to KWD 12.1 million for the same period in 2017.
Business in Algeria was negatively impacted by an increase in taxes and a weak economic environment. Customer numbers of Ooredoo Algeria declined by 3 percent to 13.5 million in Q1 2018. Revenues also decreased to KWD 60.4 million in Q1 2018, compared to KWD 73.8 million for the same period in 2017. EBITDA was KWD 25.2 million in Q1 2018, down from KWD 33.4 million in Q1 2017.
Wataniya – Palestine
Wataniya Palestine launched 3G network in the West Bank in January 2018. Customer base increased by 55 percent to 1.2 million also benefiting from the Gaza launch in October 2017. Revenue increased to KWD 7.1 million (+15 percent). EBITDA was slightly down at KWD 1.1 million, compared to KWD 1.5 million in Q1 2017.
Ooredoo Maldives reported a 2 percent increase in revenue to KWD 9.6 million. EBITDA stood at KWD 5.2 million in Q1 2018, compared to KWD 5.6 million for the same period in 2017. Ooredoo Maldives serves a total of 442k customers, a 9 percent increase compared to the same period in 2017.