Ooredoo full-year revenue falls 4%

15 Feb 2021

Qatar-based multinational telecoms group Ooredoo reported that its consolidated annual revenue fell 4% to QAR28.867 billion (USD7.862 billion) 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 markets, partially offset by growth in Indonesia, Myanmar and Palestinian Territory. EBITDA declined by 6% to QAR12.130 billion in FY20, impacted by lower revenues and challenging market conditions across most markets. The group said it maintained its focus on digitalisation and cost optimisation, reflected in an EBITDA margin of 42% for FY 2020, down by one percentage point year-on-year. Annual net profit attributable to shareholders decreased by 35% year-on-year to QAR1.126 billion in 2020 mainly due to lower EBITDA as well as one-off gains in 2019 from Ooredoo’s Indonesian tower sales. In Q4 2020 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. More positively, the group reported that its customers grew 3% y-o-y to 121 million at end-December 2020.

Ooredoo Qatar claimed a ‘solid performance’ in 2020 despite a range of challenges caused by the COVID-19 pandemic. FY20 Qatari revenue stood at QAR7.0 billion (FY 2019: QAR7.3 billion), down 3%, while EBITDA fell 7% to QAR3.7 billion (FY19: QAR4.0 billion), with an EBITDA margin of 52%. Following service disruption during the period, customers were provided with a 50% discount on mobile bills as compensation, impacting Q4 results. Qatari mobile customers grew 1% y-o-y with the post-paid base growing by 10% in the year.

Qatar, Ooredoo Group