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Ooredoo reports revenues down, but net profits way up

Qatar-based Ooredoo reached 118 million global subscribers

Qatar-based telecom group Ooredoo posted QAR 7.88 billion ($2.16 billion) in revenues during the first quarter of 2016, down 2% from QAR 8.04 billion in the same quarter a year ago. The group’s net profits for the period totaled QAR 879 million, up 75% year-on-year.
The operator’s earnings before interest, taxes, depreciation and amortization amounted to QAR 3.18 billion in Q1, down 1% year-over-year. The telco ended the quarter with 118 million subscribers in its global operation, climbing 6% compared to the same quarter in 2015. Ooredoo said the increase was chiefly driven by strong acquisitions in Myanmar, Indonesia, Algeria and Qatar.
Data accounted for 38% of the group’s revenue in the first quarter of the year, compared to 30% in Q1 2015. The telco said growth in the data segment was due to focus on network expansion and modernization and its strategy of marketing data services for individuals and businesses. Revenue from data contributed QAR 3 billion in the first quarter of 2016.
“The first three months of 2016 demonstrated robust performances in our key markets of Qatar, Oman, Indonesia and Myanmar,” said Ooredoo CEO Saud bin Nasser Al Thani. “Our results have been impacted by the challenges in Iraq due to the security situation as well as the sustained economic slowdown in Tunisia.”
In Qatar, Ooredoo ended March with 3.5 million mobile subscribers, up 6% year-over-year. The operation in Qatar accounted for 25.4% of the group’s overall Q1 revenues.
The carrier said it continued with its “Ooredoo Supernet” network enhancement program in Qatar during the first quarter, successfully piloting Voice over LTE across a substantial part of its nationwide network ahead of the service’s commercial launch, which is scheduled for the coming months.
Ooredoo now has LTE deployed across five of its nine markets. In Qatar and Kuwait, the company currently offers LTE-Advanced services. The telco operates in Qatar, Kuwait, Oman, Tunisia, Algeria, Iraq, Indonesia, Myanmar and the Maldives.

Dutch telco KPN ends Q1 with 5.23 million residential mobile subs

In other EMEA news, Dutch operator KPN recorded 1.69 billion euros (USD $1.92 billion) in Q1 revenues, a decline of 3.9% compared to the same quarter in 2015.
KPN’s EBITDA was down 4.5% at 568 million euros, while operating profit dropped 19% to 141 million euros. Net profit increased from 23 million euros in Q1 2015 to 48 million euros million this year, mainly due to lower net finance costs.
The operator said it ended March with 5.23 million consumer mobile connections, up from 5.09 million a year earlier, and 1.79 million business mobile lines, almost flat-year-on-year. Residential broadband subscriptions reached 2.85 million at the end of Q1.
KPN’s capital expense for Q1 totaled 318 million euros, down 4.8% vs. the same quarter the previous year.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.

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