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Ooredoo Group boasts 8% EBITDA improvement in Q1

27 Apr 2017

Qatar-based Ooredoo Group reports that its consolidated revenue increased by 2% year-on-year to around QAR8.0 billion (USD2.2 billion) in the first quarter of 2017, whilst in local currency terms (excluding foreign exchange impact) turnover grew 3%, driven by divisional sales growth in Indonesia, Qatar, Oman, Tunisia, Myanmar and the Maldives. Group Q1 EBITDA increased by 8% y-o-y to around QAR3.4 billion, with an improved EBITDA margin of 43%, helped by strong cost control and operational performance especially in Qatar, Indonesia, Kuwait, Algeria, Tunisia, the Maldives and Myanmar. Net Profit attributable to Ooredoo shareholders decreased by 34% y-o-y to QAR584 million in January-March 2017, due to foreign exchange gains in 1Q16 of QAR380 million (excluding these gains, net profit in Q1 2017 was up by 3%). Ooredoo also highlighted continued strong data growth from consumer and enterprise customers: data revenue increased to 43% (QAR3.5 billion) of group revenue in 1Q17. Quarterly B2B revenue, meanwhile, increased by 17% to QAR1.4 billion, reflecting Ooredoo’s ongoing investment in services for business customers. Ooredoo’s consolidated customer base increased by 26% y-o-y to reach 149 million across ten countries at the end of March 2017, with 4G mobile services now operated in eight markets.

Ooredoo Qatar delivered a 2% rise in Q1 revenue to QAR2.0 billion, whilst its number of customers was ‘stable’ at 3.5 million; Qatari EBITDA stood at QAR1.0 billion for Q1 2017, 9% above Q1 2016’s figure. Indosat Ooredoo (Indonesia) saw revenue increase by 8% to QAR2.0 billion, while its EBITDA climbed 6% to QAR902 million, with Indosat customers growing by 37% to reach 96 million at end-1Q17. Ooredoo Myanmar returned to a positive EBITDA margin of 6% in the quarter after significant margin uplift and cost reduction initiatives which will continue being a focus for the company for the remainder of the year. Revenues in Myanmar stood at QAR323 million and EBITDA was QAR20 million, up by 129% compared to Q1 2016, as local customers exceeded nine million by end-March, up 35% compared to the same period last year, driven by 4G network deployment and additional 3G site rollouts.

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