Ooredoo reports 21% increase in net profit for H1 2017

KUWAIT: National Mobile Telecommunications Company K.S.C.P “Ooredoo” (Ticker: OOREDOO) announced yesterday its financial results for the first half ended 30 June 2017:

Financial Highlights:
* Consolidated customer base increased by 4% to reach 25.6 million at 1H 2017, compared to 24.6 million for the same period in 2016.
* Revenues for 1H 2017 stood at KD 343.8 million, compared with KD 350.8 million for the same period in 2016, representing a decrease of 2%.
* EBITDA increased 11% in 1H 2017 to KD 128.9 million, compared to EBITDA of KD 115.8 million for the same period in 2016.

* The net profit attributable to NMTC in 1H 2017 was KD 23.3 million, representing a strong growth of 21% compared with KD 19.3 million for the same period last year. Net Profit growth was supported by good performances by Ooredoo Algeria and by Ooredoo Maldives.
* The consolidated earnings per share was 46 fils compared to 38 fils per share earned for the same period last year.

* Ooredoo Maldives is proceeding with the listing of its shares on the Maldives Stock Exchange as planned. A total of 14,045,260 shares will be allocated to 8,257 applicants. This is equivalent to MVR 421.4 million (KD 8.1 million) and constitutes 9.5% of the issued paid up shares of Ooredoo Maldives. Trading of the shares is expected to start during August 2017

Sheikh Saud Bin Nasser Al-Thani, Chairman of the Board of Directors commented: “Ooredoo has made good progress in the first half of the year, with increases in its customer base, EBITDA and net profit. He added that in a highly competitive market, revenue was down 2 percent to KD 343.8 million, compared with KD 350.8 million for the same period in 2016.

However, testament to the company’s strong efficiency and cost optimization program, Ooredoo delivered 11 percent growth in EBITDA to KD 128.9 million. Company profitability also went up, with net profit increasing 21 percent to reach KD 23.3 million compared with KD 19.3 million for the same period last year. The growth in profitability was supported by good performances by Ooredoo Algeria and Ooredoo Maldives, where we continue to benefit from last year’s 4G launch and further expansion of our 3G network.

We remain committed to delivering a state-of-the-art network experience, an innovative product portfolio, and a differentiated customer experience. Our customers are at the heart of our business and I am pleased to report we have increased our customer base by 4 percent to 26 million customers.

Review of Operations

The Group’s operational performance can be summarized as follows:
Ooredoo – Kuwait
Ooredoo’s customer base in Kuwait stood at 2.3 million at the end of 1H 2017, representing an 8 percent decrease compared to the same period in 2016 due to intense competition and the overall market condition. Revenues for 1H 2017 were KD 105.2 million, an increase of 5 percent compared to KD 100.2 million in 2016. EBITDA was KD 27.0 million, up from KD 21.3 million in 1H 2016.

Ooredoo – Tunisia

Ooredoo’s Tunisia customer base reached 8 million at the end of 1H 2017, an increase of 6 percent compared to the same period in 2016. Revenues for 1H 2017 stood at KD 62.2 million, compared to KD 69.5 million in 1H 2016. EBITDA was KD 23.3 million compared to KD 25.5 million for the same period in 2016. In local currency terms, revenue increased by 2 percent and EBITDA by 4 percent.

Ooredoo – Algeria

Ooredoo’s customer base in Algeria increased to 14.0 million customers in 1H 2017, up by 5 percent compared with the same period in 2016. Revenues for 1H 2017 were KD 145.5 million compared to revenues of KD 152.9 million for the same period in 2016, negatively impacted by the increase in VAT and a weak economic environment. EBITDA for 1H 2017 increased to KD 65.1 million, representing a 13 percent growth compared to KD 57.4 million in 1H 2016.

Wataniya – Palestine

The total customer base for Wataniya Mobile Palestine at the end of 1H 2017 was eight hundred thousand, an increase of 8 percent from the same period in 2016. Revenues for 1H 2017 stood at KD 12.6 million compared to revenues of KD 12.5 million for the same period in 2016. EBITDA for 1H 2017 was KD 3.3 million compared to an EBITDA of KD 3.9 million for the same period in 2016.

Ooredoo – Maldives

At the end of 1H 2017 Maldives total customer base was four hundred thousand, an increase of 8 percent from the same period in 2016. Revenues for 1H 2017 were KD 18.2 million, an increase of 16 percent compared to KD 15.7 million for the same period in 2016. EBITDA for 1H 2017 was KD 10.4 million, an increase of 20 percent compared to an EBITDA of KWD 8.7 million for the same period in 2016.

 

This article was published on 25/07/2017