Board proposed a cash dividend of QAR 0.43 per share
Doha, Qatar, 14 February 2023: Ooredoo Q.P.S.C. (“Ooredoo”) – Ticker: ORDS today announced its financial results for the year ended 31 December 2022.
Financial Highlights:
Due to the merger of Indosat Ooredoo (IO) and Hutchison in Indonesia as of January 4, 2022, the accounting treatment of Ooredoo’s previous largest international operation has been changed. Indosat Ooredoo Hutchison (“IOH”) Revenue, EBITDA, customers, and Capex are no longer consolidated, as the operation is now classified as a “joint venture company.” For “a like for like” comparison, we have added a proforma table excluding the Indonesian consolidated results in 2021 and normalising for major non-recurring items.
| Proforma Numbers | Normalised Proforma, excl. Indosat Ooredoo in Q4 2022* | Normalised Proforma excl. IO in FY 2022 | ||||
| Q4 2022 | Q4 2021 | % Change | FY 2022 | FY 2021 | % Change | |
| Consolidated Revenue (QAR m) | 5,845 | 5,653 | 3% | 22,698 | 21,906 | 4% |
| EBITDA (QAR m) | 2,273 | 2,317 | -2% | 9,129 | 9,274 | -2% |
| EBITDA Margin (%) | 39% | 41% | 40% | 42% | ||
| Net Profit attributable to Ooredoo Shareholders (QAR m) | 722 | 643 | 12% | 2,821 | 2,223 | 27% |
| CAPEX (QAR m) | 1,174 | 1,270 | -8% | 2,729 | 3,084 | -12% |
| CAPEX/Revenue (%) | 20% | 22% | 12% | 14% | ||
| Free Cash Flow (QAR m) | 1,099 | 1,048 | 5% | 6,401 | 6,189 | 3% |
| Customers in million (consolidated) | 56 | 58 | -3% | 56 | 58 | -3% |
*Normalised Proforma numbers excluding IO and major non-recurring items
| Reported Numbers | Quarterly Analysis | Full Year Analysis | ||||
| Q4 2022 | Q4 2021 | % Change | FY 2022 | FY 2021 | % Change | |
| Consolidated Revenue (QAR m) | 5,845 | 7,782 | -25% | 22,698 | 29,900 | -24% |
| EBITDA (QAR m) | 2,273 | 3,147 | -28% | 9,375 | 13,050 | -28% |
| EBITDA Margin (%) | 39% | 40% | 41% | 44% | ||
| Net Profit attributable to Ooredoo Shareholders (QAR m) | 312 | 806 | -61% | 2,360 | 47 | 4931% |
| CAPEX (QAR m) | 1,174 | 1,823 | -36% | 2,729 | 4,845 | -44% |
| CAPEX/Revenue (%) | 20% | 23% | 12% | 16% | ||
| Free Cash Flow (QAR m) | 1,099 | 1,323 | -17% | 6,646 | 8,205 | -19% |
| Customers in million (consolidated) | 56 | 121 | -54% | 56 | 121 | -54% |
Financial highlights:
- Proforma Revenue for the full year ended 31 December 2022 rose by 4% to at QAR 22.7 billion, compared to QAR 21.9 billion in 2021
- Group normalised EBITDA for the period was QAR 9.1 billion with a corresponding EBITDA margin of 40%. The 2% EBITDA drop was driven by higher cost of sales and OPEX in Iraq and higher staff cost at Group level mainly due the implementation of a new, future ready, unified operating platform “OneOoredoo” and the “braveheart” transformation project, partially offset by stronger EBITDA performances in other markets.
- CAPEX for the period stood at QAR 2.7 billion
- Normalised Free Cash Flow increased 3% to reach QAR 6.4 billion driven by reduced CAPEX which was partially offset by reduced EBITDA
- Normalised Net Profit for the period stood at QAR 2.8 billion compared to QAR 2.2 billion in 2021. NP has been normalised in the same manner as EBITDA plus impairments and FX impact. Net Profit in 2021 included two major one-off items (QR 2.3 billion Myanmar impairment loss and QR 1.0 billion gain from Indonesian tower sales)
- Consolidated customer base stood at 56 million, driven by growth in most markets offset by a decline in Myanmar
- The Board recommends the distribution of a cash dividend of QAR 0.43 per share. This recommendation is based on healthy balance sheet, adequate liquidity, and overall solid operational performance.
Operational highlights:
- Ooredoo Qatar achieved record-breaking Revenue at the conclusion of the FIFA World Cup, a sporting mega-event, cementing its position as a world-leading telecommunications and ICT provider. Additionally, the company has named Sheikh Ali Bin Jabor Al Thani post period on 8 January 2023 as its new CEO.
- S&P upgraded Ooredoo to ‘A/A-1’ on improved Free Cash generation; Outlook Stablepost period on February 9
- On December 7, Ooredoo Kuwait becomes the first Kuwaiti telecoms company to integrate Apple Pay within its application
- On December 4, Ooredoo Maldives received Gold 100 award, which is a prestigious award given to the leading one hundred business entities in the Maldives
- On November 24, Ooredoo Algeria partnered with the Algerian National Bank to enable account holders to pay for Ooredoo services via ATM cash machines and the Wimpay e-banking service, which supports QR code payments and is available via a dedicated app at no extra charge. In December, the company won Best African Operator award and Best African CSR Initiative at the Telecom Review Leaders’ Summit.
- Ooredoo Oman received the Best Middle Eastern Digital Customer Experience Award from Telecoms review, as well as achieving Bronze for “Excellence in Innovation in Technology Industries” at the Stevie Awards Middle East.
- Htar Thant Zin assumed her new role as Acting CEO of Ooredoo Myanmar, effective 1 November 2022
Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said:
“Ooredoo Group ended the year 2022 with outstanding results, boasting a revenue of QAR 22.7 billion and a remarkable increase in normalised net profit. This success is a testament to our commitment to delivering robust connectivity, exceptional customer experiences, and maximizing shareholder value.
Furthermore, I am proud to announce that the company’s credit rating has been upgraded by S&P Global to A/A-1 with stable outlook. This reflects the company’s robust financial position. This upgrade is a testament to our commitment to delivering value to all our stakeholders and is a direct result of our improved free cash generation.
Driven by our digital transformation strategy, we are effectively capitalizing on market opportunities and are confidently poised for further success. Our ability to remain agile and adapt to the rapidly evolving nature of the markets in which we operate positions us well for continued growth and strong returns.
Finally, I am pleased to announce that the Board will recommend the distribution of a cash dividend of QAR 0.43 per share at the annual general meeting, taking place on 7 March 2023.”
Also commenting on the results, Aziz Aluthman Fakhroo, Managing Director of Ooredoo said:
“I am thrilled to report a 27% increase of our normalised Net Profit reaching QAR 2.8 billion, our best result since 2013. Our Proforma revenues have experienced a remarkable growth of 4% to reach QAR 22.7 billion. Our EBITDA margin remains strong at a robust 40%. This is a testament to the exceptional challenging work and commitment of each one of our employees. Despite the challenges, we have consistently kept our sights set on delivering exceptional customer experiences – a true reflection of our company’s unwavering commitment to excellence.
Qatar, our home market, performed exceptionally achieving record-breaking Revenue at the conclusion of the FIFA World Cup, cementing its position as a world-leading telecommunications and ICT provider. Ooredoo Qatar delivered an impressive performance in 2022, with reported revenue up 7% to QAR 8.0 billion. This was driven by growth in postpaid services, Ooredoo TV, ICT services and increased sale of devices. We also initiated 2023 by welcoming the newly appointed CEO Sheikh Ali Bin Jabor Al Thani, who will build on the strong foundations put in place by his predecessors and enable Ooredoo Qatar to continue to innovate and drive value creation in our home market.
Ooredoo Oman delivered solid performance in 2022 closing the year with a 5% growth in revenue, driven by a growth in postpaid, devices and wholesale revenues.
Asiacell’s customer base experienced a significant increase of 7% in 2022 as many promotions such as free data bundles, add-on packages, World Cup roaming bundles, as well as bundle cards were rolled out.
Ooredoo Tunisia is becoming increasingly competitive in fiber because of its targeted strategy that has allowed it to win major projects, particularly in the private sector. The fibre rollout continues to make timely progress. Ooredoo Tunisia celebrates a successful year marked with a solid EBITDA margin of 44% in 2022.”
