Ooredoo counts over 8 million users
The Qatar-based telco signed up 1.1 million users in Myanmar in the second quarter of 2016 after becoming the first operator to launch fourthgeneration services.
OOREDOO has racked up more than 8 million users in Myanmar according to the company’s second-quarter results – a 1.1 million increase on the previous quarter.
The Qatar-based telco said it had doubled its customer base in Myanmar by 108 percent year-on-year and reported that its data network now covers more than 85pc of the population.
In an announcement to investors, Ooredoo said it “continues to be the data leader in its markets”, including Myanmar and Algeria. The telco made history in May when it became the first operator to launch fourth-generation services in Myanmar’s three largest cities.
CEO Rene Meza said at a launch event on May 20 that the 4G network will cover one-half of Yangon’s townships, all of Mandalay and about 90 percent of Nay Pyi Taw. The company now counts around 200,000 4G subscribers across its user base.
For the first half of 2016, revenue growth was 41pc to 717 million Qatari riyals (US$196.9 million) from 510 million riyals in the first half of 2015, driven by growth in the data business.
Ooredoo’s net profit in Myanmar was 79 million riyals over the period compared to a net loss of 302 million riyals in the opening half of last year. Earnings before interest, tax, depreciation and amortization, or EBITDA, were negative 3 million riyals, up from negative EBITDA of 18 million riyals this time last year.
The company noted that the kyat’s increase in value against the dollar in the first half had helped boost earnings. The kyat appreciated by 10.7pc to the dollar in the first six months of the year, according to Central Bank data.
Despite healthy growth, Ooredoo’s performance has lagged that of international rival Telenor, which reported a subscriber base of 16.9 million customers in its Q2 results last week.
The Norwegian operator, which won its licence at the same time as Ooredoo, added 1.4 million new subscribers over the three months to June – a slower growth in customers than it has seen in the past.
In an announcement last week, Telenor CEO Sigve Brekke attributed the slowdown to growing competition.
“We see quite aggressive offers now from both our competitors on on-net traffic,” he said. “We are responding to that.”
Telenor and Ooredoo share the market with state-owned Myanma Posts and Telecommunications.
A fourth operator, likely to be run by Vietnam’s Viettel in cooperation with a Myanmar government stakeholder and a local consortium, is still at the negotiating table and yet to receive a licence.
Workers hoist an Ooredoo sign on to a storefront.