Ooredoo reports 8% increase in net profit for 9 months
KUWAIT: National Mobile Telecommunications Company K.S.C.P “Ooredoo” (Ticker: OOREDOO) announced yesterday its financial results for the nine months ended 30 September 2017:
Financial highlights
• Consolidated customer base increased by 5% to reach 26.1 million for the nine months ended 30 September 2017, compared to 24.9 million for the same period in 2016.
• Revenues for nine months ended 30 September 2017 stood at KD 522.6 million, compared with KD 533.0 million for the same period in 2016, representing a decrease of 2%.
• EBITDA increased by 9% for the nine months ended 30 September 2017 to KD 197.6 million, compared to EBITDA of KD 181.1 million for the same period in 2016.
• The net profit attributable to NMTC for the nine months ended 30 September 2017 was KD 34.8 million, representing a strong growth of 8% compared with KD 32.2 million for the same period last year. Net Profit growth was supported by good performances by Ooredoo Algeria and Ooredoo Maldives.
• The consolidated Earnings per Share was 69 fils compared to 64 fils per share earned for the same period last year.
• Ooredoo Maldives completed the listing of its shares on the Maldives Stock Exchange on August 9th, 2017. A total of 14,045,260 shares were sold to 8,257 applicants, resulting in IPO proceeds of MVR 421,357,800 (KD 8.1 million), making the Ooredoo Maldives IPO the most successful listing in the country. Sheikh Saud Bin Nasser Al-Thani, Chairman of the Board of Directors commented: “Against a backdrop of challenging market conditions, I am pleased to report growth in company profitability, customer numbers and EBITDA, with Ooredoo continuing to deliver good value to its customers and shareholders.
Net profit attributable to shareholders increased 8 percent for the nine months ended 30 September to reach KD 26 million. The growth in company profitability was supported by good performance across our operations in Ooredoo Algeria and Ooredoo Maldives. With a relentless focus on efficiency and cost optimization, EBITDA increased 9 percent to approximately KD 198 million. EBITDA growth was driven by our operations in Kuwait, Algeria and Maldives.
Ooredoo’s investments in a state-of-the-art network and our relentless focus on customer excellence and product innovation have helped us continue a positive growth trend for the nine months of 2017. Our operations in Tunisia, Algeria, Palestine and Maldives strengthened their customer base. I am pleased to report that we have increased our customer base by 5 percent and we are now proudly serving 26 million customers. A highlight for the period was the completion of the listing of shares of Ooredoo Maldives on the local stock exchange. On the 9th of August 2017, a total of approximately 14 million shares were sold to more than 8,000 applicants, making the Ooredoo Maldives IPO one of the most successful listings in the country. We are proud to have contributed to the education of investors in the market and to attract new investors to the Maldives Stock Exchange, with more than half of the shareholders who purchased Ooredoo’s stock in the IPO being first-timers.”
Review of operations
The Group’s operational performance can be summarized as follows:
Ooredoo - Kuwait Ooredoo’s customer base in Kuwait stood at 2.3 million for the nine months ended 30 September 2017, representing a 4 percent decrease compared to the same period in 2016 due to intense competition and the overall market condition. Revenues at 9M2017 were KD 160.7 million, an increase of 8 percent compared to KD 148.7 million for the same period in 2016. EBITDA was KD 39.6 million, up from KD 36.0 million for the same period in 2016.
Ooredoo - Tunisia Ooredoo’s customer base in Tunisia reached 8.3 million for the nine months ended 30 September 2017, an increase of 6 percent compared to the same period in 2016. Revenues stood at KD 96.2 million, compared to KD 106.8 million in for the same period in 2016. EBITDA was KD 38.0 million compared to KD 41.8 million for the same period in 2016. In local currency terms, revenue increased by 2 percent and EBITDA by 2 percent for the nine months ended 30 September 2017.