Ooredoo Kuwait reports revenue of KD 470m for 9 months ended 30 Sept
Net profit to NMTC increased by 45% in 9 months up to 30 Sept 2019
KUWAIT: National Mobile Telecommunications Company K.S.C.P “Ooredoo Kuwait” announced yesterday its financial results for the nine months ended 30 September 2019:
• Consolidated customer base increased by 1 percent to 26.8 million for the nine months ended 30 September 2019, compared to 26.6 million for the same period in 2018.
• In local currency terms Tunisia recorded good growth in revenue. However, revenues in KD were impacted by a 15 percent depreciation of the Tunisian dinar and the decrease in Algeria revenue mainly due to the weak economic environment, currency devaluation and price competition. Consequently, consolidated revenue decreased by 6 percent to KD 470.0 million for the nine months ended 30 September 2019, compared to KD 502.4 million for the same period in 2018.
• EBITDA increased by 8 percent for the nine months ended 30 September 2019 to KD 174.4 million, compared to KD 162.1 million for the same period in 2018, supported by the implementation of IFRS 16, a new accounting standard, in addition to operational efficiencies.
• Net profit attributable to NMTC was KD 23.5 million for the nine months ended 30 September 2019, representing a strong growth of 45 percent compared with KD 16.2 million for the same period in 2018. Net profit growth was supported by good performances in Kuwait, Tunisia and Maldives.
• The consolidated earnings per share was 47 fils for the nine months ended 30 September 2019, compared to 32 fils per share earned for the same period last year.
Sheikh Saud Bin Nasser Al-Thani, Chairman of the Board of Directors commented: “I am pleased to report a robust set of results for the first nine months of 2019, with net profit up 45 percent to KD 23.5 million for Ooredoo Kuwait (NMTC). Growth was driven primarily by our strong focus on operational efficiencies, benefitting from leveraging group synergies, technology and improved resource management.
Consolidated customer base grew to 27 million at the end of the first nine months of 2019, supported by our ongoing investments to enhance customer experience and the development of innovative solutions that are tailored to the needs of a new generation of technological savvy users.
Revenues remain under pressure due to geopolitical and macroeconomic factors, including currency depreciation in Tunisia and Algeria, in addition to intense price competition in Kuwait. NMTC reported revenues of KD 470 million during the first nine months of 2019 compared to KD 502 million for the same period last year. EBITDA of the Ooredoo operation in Kuwait continued to improve, despite decreasing revenues, reflecting the success of our efficiency program.
In Tunisia we increased our customer base by 3 percent to 9.1 million, whilst also increasing EBITDA by 11 percent compared to the same period last year, despite the depreciation in the Tunisian dinar.
In Algeria, performance continues to be impacted by softening economic conditions, intense price competition and currency depreciation. In Palestine we maintained our focus on cost optimization, resulting in a 12 percent increase in EBITDA to KD 6.5 million.
Finally, in the Maldives, we reported strong results across the board, with EBITDA increasing 11 percent to KD 16 million, supported by a 5 percent increase in customer numbers.”
Review of operations
The Group’s operational performance can be summarized as follows:
Ooredoo - Kuwait operations
Ooredoo’s customer base in Kuwait increased to 2.6 million at 9M 2019, up 13 percent compared to the same period in 2018. Revenues were KD 169.7 million at 9M 2019, compared to KD 181.7 million for the same period in 2018. EBITDA was strong, increasing 44 percent to KD 53.1 million for the nine-month period in 2019, compared to KD 36.8 million for the same period in 2018. The increase of 44 percent reflected good operational efficiencies across the business as well as a positive impact of the new IFRS 16 accounting standard.
Ooredoo - Tunisia
Ooredoo’s customer base in Tunisia increased 3 percent to reach 9.1 million customers for the nine-month period in 2019, compared to the same period in 2018. The Tunisian Dinar depreciated by 15 percent year on year, leading to a decrease in revenues from KD 95.4 million at 9M 2018 to KD 91.5 million at 9M 2019. In local currency terms, revenues were up by 10 percent, reflecting a good business performance in the local market. EBITDA was KD 43.7 million at 9M 2019 compared to KD 39.5 million for the same period in 2018.
Ooredoo - Algeria
Customer base in Algeria stood at 13.4 million for the nine months ended 30 September 2019. Business in Algeria was negatively impacted by the devaluation of the Algerian Dinar, a weak economic environment and intense price competition. Consequently, revenues decreased to KD 157.3 million at 9M 2019, compared to KD 173.6 million for the same period in 2018. EBITDA was KD 55.3 million at 9M 2019, down from KD 66.3 million at 9M 2018. Algerian Dinar depreciated by 2 percent year on year.
Ooredoo - Palestine
Customer base in Palestine increased by 1 percent to reach 1.3 million customers for the nine months ended 30 September 2019. Revenue decreased to KD 22.2 million at 9M 2019, compared to KD 23.0 million for the same period in 2018. EBITDA was strong, increasing 12 percent to KD 6.5 million at 9M 2019, compared to KD 5.8 million at 9M 2018, driven by operational efficiencies across the business and the implementation of IFRS 16.
Ooredoo - Maldives
Ooredoo Maldives reported a 2 percent increase in revenues to KD 29.3 million for the nine months ended 30 September 2019, compared to KD 28.7 million for the same period in 2018. EBITDA was KD 16.0 million at 9M 2019, an increase of 11 percent compared to KD 14.4 million for the same period in 2018. Ooredoo Maldives now serves a total of 451k customers, an increase of 5 percent compared to the same period in 2018.