JAKARTA- Ooredoo Group has posted a net profit of QR1.1bn in 2020, which was down 35% year-on-year mainly due to lower EBITDA and one off gains in 2019 from the Indonesian tower sales.
In Q4, 2020 the net profit was “negatively impacted” by foreign exchange losses mainly due to the devaluation of the Iraqi dinar and a one-off impairment from an investment, Ooredoo said while announcing its financial results for 2020.
Revenue declined by 4% year-on-year to QR28.9bn in 2020, due to the Covid-19 pandemic impact, with a reduction in handset sales and roaming business as well as macroeconomic weakness in some of its markets. This was partially offset by growth in Indonesia, Myanmar and Palestine.
EBITDA declined by 6% year-on-year to QR12.1bn in 2020, impacted by lower revenues and challenging market conditions across most markets. The company said it maintains its focus on digitalisation and cost optimisation, which has been reflected in a healthy EBITDA margin of 42% for FY 2020.
Ooredoo Group expanded its customer base by 3% to 121mn customers, boosted by additions in Iraq, Indonesia and Myanmar.
The Group maintains healthy cash reserves and liquidity levels, and with a net profit of QR1.1bn, the board of directors has recommended the distribution of a cash dividend of QR0.25 per share.
On the results, Ooredoo chairman HE Sheikh Faisal bin Thani al-Thani, said, “Ooredoo Group demonstrated the resilience of its operations in 2020, delivering a net profit of QR1.1bn, maintaining healthy cash reserves and liquidity levels, and expanding its customer base despite of the challenging environment. 2020 was a year unlike any other, which disrupted lives and challenged organisations.
“I am proud of the role that we played in keeping communities connected and the economy moving. Our focus on innovation and digitisation has enabled us to seamlessly serve our customers through our digital channels while allowing our staff to work from home in a safe and productive manner.
“The global pandemic will have a lasting impact on customer expectations and the way people use technology. Ooredoo Group continues to invest in its digital transformation strategy and network capabilities to meet the evolving need of our customers and to help them unlock the true value of new technologies.
“I am pleased to announce that the board of directors will recommend the distribution of a cash dividend of QR0.25 per share at the annual general meeting in 3rd March 2021.”
Also commenting on the results, Ooredoo managing director Aziz Aluthman Fakhroo said, “I am pleased to report a solid financial performance across our operations, in spite of the Covid-19 pandemic and the challenging macro-economic environment. Group revenues were QR28.9bn in 2020, down 4% compared to the previous year, due to macroeconomic weaknesses in some of our markets.
“Throughout the year, we remained focused on our cost optimisation strategy, which enabled us to maintain a robust EBITDA margin of 42% in 2020. EBITDA during the year was QR12.1bn, down slightly from QR12.8bn in the previous year due to the decline in revenues. Net profit for the year declined to QR1.1bn, mainly due to lower EBITDA and to one off gains from the Indonesian tower sales in 2019. Ooredoo Group continues to witness strong demand for its product and services, as demonstrated by the 3% increase in our customer base to 121mn during these challenging times, supported by strong customer growth in Myanmar, Indonesia and Iraq.”