Ooredoo reports KD 175m revenue for Q1 2018
Customer base up by 2% to reach 26 million
KUWAIT: National Mobile Telecommunications Company K.S.C.P “Ooredoo” announced yesterday its financial results for the quarter ended 31 March 2018:
Financial highlights:
• Consolidated customer base increased by 2% to reach 25.8 million in Q1 2018, compared to 25.4 million in Q1 2017.
• Revenue increased 3% to KD 174.6 million in Q1 2018, compared to KD 169.0 million for the same period in 2017.
• EBITDA was KD 55.3 million in Q1 2018, compared to KD 64.9 million for the same period in 2017.
• Net Profit Attributable to NMTC was KD 9.2 million in Q1 2018, compared to KD 12.9 million for the same period last year. The decrease was mainly caused by a lower Algerian contribution due to a weak economic environment and higher taxes.
• The consolidated Earnings per Share was 18 fils in Q1 2018, compared to 26 fils per share earned for the same period last year.
Sheikh Saud Bin Nasser Al-Thani, Chairman of the Board of Directors commented: “On Group level for the three months ended March 31st 2018, we’ve increased our customer base by 2 percent and we now proudly serve almost 26 million customers. Revenue was up 3 percent to KD 175 million. EBITDA and net profit were adversely impacted by the challenges in the Algerian market and additional taxes.
In Kuwait, the significant increase in revenue of 37 percent in Q1 2018 was mainly driven by non-recurring business. Higher handset sales lead to a compression of margins.
In Tunisia we maintained our market leadership, particularly in the mobile data space. In Q1
2018 our customer base and local currency revenue increased by 7 percent and 8 percent, respectively compared to the same period last year, leading to stable
EBITDA levels.
In Algeria we sustained our mobile data leadership and continued to deploy the 4G network across the country.
In Palestine, our West Bank customers are now enjoying high quality data services via our 3G network. Furthermore, we launched services in Gaza in October 2017, that led to a 55 percent increase in customer numbers and a 15 percent increase in revenue, compared to the same period last year.
Review of operations
The Group’s operational performance can be summarized as follows:
Ooredoo - Kuwait
Ooredoo’s customer base in Kuwait stood at 2.2 million in Q1 2018, representing a 5 percent decrease compared to the same period in 2017 due to intense competition and weak market conditions. Revenues for Q1 2018 were KD 65.5 million, an increase of 37 percent compared to KD 47.8 million for the same period in 2017. Higher handset sales led to an increase in revenue, while at the same time negatively impacting margins. Consequently, EBITDA was KD 11.8 million in Q1 2018, slightly lower than KD 12.4 million in Q1 2017.
Ooredoo - Tunisia
Ooredoo’s customer base in Tunisia reached 8.5 million in Q1 2018, an increase of 7 percent compared to the same period in 2017. Revenues were stable at KD 31.9 million in Q1 2018, compared to KD 31.8 million for the same period in 2017. EBITDA was KD 11.9 million compared to KD 12.1 million for the same period in 2017.
Ooredoo - Algeria
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, compared with the same period in 2017. Revenues also decreased to KD 60.4 million in Q1 2018, compared to KD 73.8 million for the same period in 2017. EBITDA was KD 25.2 million in Q1 2018, down from KD 33.4 million in Q1 2017.
Wataniya - Palestine
Wataniya Palestine made good progress in the first three months of the year, with the launch of the 3G network in the West Bank in January 2018. Customer numbers increased by 55 percent to 1.2 million also benefiting from the Gaza launch in October 2017. Revenue increased to KD 7.1 million, up by 15 percent compared to KD 6.2 million for the same period in 2017. EBITDA was slightly down at KD 1.1 million, compared to KD 1.5 million in Q1 2017.
Ooredoo - Maldives
Ooredoo Maldives reported a 2 percent increase in revenue in Q1 2018 to KD 9.6 million, compared to KD 9.5 million for the same period in 2017. EBITDA stood at KD 5.2 million in Q1 2018, compared to KD 5.6 million for the same period in 2017. Ooredoo Maldives now serves a total of 442k customers, a 9 percent increase compared to the same period in 2017.