Ooredoo Reports Strong H1 2023 Financial Results and Strategic Tower Company Negotiations

August 3, 2023

2 min read

Author: Aayushya Ranjan

Ooredoo Q.P.S.C. (“Ooredoo”), a leading telecommunications company, has reported its financial results for the first half of 2023. The highlights of the H1 2023 performance demonstrate robust growth and positive financial indicators.

Notably, Ooredoo achieved a strong year-on-year revenue growth of 3%, amounting to QAR 11.4 billion. The company also recorded healthy EBITDA of QAR 4.8 billion, with a margin of 42%, and an exceptional 20% YoY growth in normalized net profit, reaching QAR 1.6 billion. Additionally, normalized free cash flow saw a 7% YoY increase, reaching QAR 3.9 billion. The capex intensity decreased by 1 percentage point to 8%.

Ooredoo has expanded its customer base to 156.2 million, showing a solid 3% YoY growth, including IOH.

As part of its commitment to value-focused portfolio, Ooredoo announced its entry into exclusive negotiations with Zain and TASC Towers Holding to establish an independent tower company consisting of up to 30,000 towers. This strategic move is expected to uplift both Ooredoo Group’s and Zain Group’s enterprise value through an efficient capital structure, while also reducing carbon footprint in the MENA region. The definitive agreements for this transaction are expected to be signed around Q3 2023.

Ooredoo’s tower network in Oman is following a separate stand-alone process.

Ooredoo Group continues to progress towards achieving its 2023 targets. The revenue target is expected to remain stable, while the EBITDA margin is projected to be in the low 40% range. Moreover, the planned CAPEX for the year will increase in the second half to reach approximately QAR 3 billion.

The company has also received recognition for its excellence. Ooredoo Kuwait was honored with the prestigious Asian Telecom Awards 2023 for Best Application and Best Website of the Year in Kuwait.

Ooredoo Algeria has been actively working on enhancing customer satisfaction with its network densification efforts. The company has successfully achieved a total of 6,556 sites, which significantly improves coverage and user experience.

With a steadfast strategy and unwavering commitment, Ooredoo Group aims to create sustainable value for its customers, stakeholders, and the communities it serves.