Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — H1 2023 Earnings Presentation
41 slides from Ooredoo Q.p.s.c's earnings presentation, Aug 3, 2023
Slide 1: Ooredoo Group H1 2023 Results
OOREDOO GROUP H1 2023 RESULTS 03 August 2023 | |
Slide 2: Disclaimer
Disclaimer ▪ Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of (“Ooredoo Group”) cautions investors that certain statements contained in this document state Ooredoo Group management's intentions, hopes, beliefs, expectations, or predictions of the future and
Slide 3: Presenters
Presenters Strategy and vision Results review Operations review Aziz Aluthman Fakhroo Abdulla Ahmed Al-Zaman MD and Group CEO Group CFO | | 3
Slide 4: Contents: Strategy and vision
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 4
Slide 5: Enriching people's digital lives
Our Vision Enriching people’s digital lives Excellence Value in Customer Focused Experience Portfolio Our strategy Protect and grow our customer assets Reduce asset base with better external use (2022-2024) People Braveheart 2.0 Build skills, talent Strengthen the Core and ways of working Drive prof
Slide 6: Contents: Results review
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 6
Slide 7: Group results: Key highlights for H1 2023
Group results Key highlights for H1 2023 Good performance for H1, delivered an increase in revenue with a solid EBITDA margin | FCF and NP growth Revenue EBITDA and FCF Net Profit Updates Strong revenue increase Reported EBITDA remained Reported net profit up 20% Entered exclusive of 3% to QAR 11.4
Slide 8: Ooredoo Group H1 2023 YoY highlights
Ooredoo Group | H1 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity - +3% - (+4%*) -1pp (+0.4pp*) -1pp QAR11.4bn QAR4.8bn 42% 8% Free Cash Flow Net Profit Net Debt/EBITDA Customers +2% (+7%*) +20% to QAR1.8bn -0.2x +3% to 56.2mn **+3% to 156.2mn QAR3.9bn *+20% to QAR1.6bn 1.1x *Norma
Slide 9: Ooredoo Group Q2 2023 YoY highlights
Ooredoo Group | Q2 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity +4% -3% (*+7%) -3pp (*+1pp) -2pp QAR5.8bn QAR2.4bn 42% 8% Free Cash Flow Net Profit Net Debt/EBITDA Customers +2% (+17%*) +1% to QAR0.8bn -0.2x +3% to 56.2mn **+3% to 156.2mn QAR1.9bn *+26% to QAR0.8bn 1.1x *Normaliz
Slide 10: Revenue
Revenue Group revenue H1 2023 Q2 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly +3% +4% +232 43 9 1 11,086 11,409 45 0% -3% 59 8% -1% -22% 222 6% -4% 5.774 11% (3) (3) (59) 26% (81) 5.541 Group Iraq Algeria Kuwait Others Maldives Tunisia Palestine Oman Myanmar Qatar Group Q2 2022 Q2 2023
Slide 11: EBITDA
EBITDA Group EBITDA H1 2023 Q2 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly EBITDA margin (%) -3% -87 0% 51 5 3 0 131 9% 9% 0% -8% -18% 27% -11% 4,824 4,812 (13) (19) 35% (35) -135% 2,491 (80) -14% 2,404 (131) 44% 42% Group Iraq Algeria Maldives Palestine Kuwait Tunisia Myanmar Oman Ot
Slide 12: Net Profit | H1 2023 Reported and Normalized
Net Profit | H1 2023 Reported and Normalized H1 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +20% +20% 1,795 1,625 1,498 1,350 H1 2022 Reported H1 2023 Reported H1 2022 Normalized H1 2023 Normalized • Net Profit excl. FX impact & major one offs (NMTC legal case gain, impairment of Oo
Slide 13: Net Profit | H1 2023 Reported to Normalized reconciliation
Net Profit | H1 2023 Reported to Normalized reconciliation H1 2023 Net Profit reported to H1 2023 normalized H1 2022 Net Profit reported to H1 2022 normalized (QARmn) (QARmn) 158 (56) 1,795 175 (446) 1,498 1,625 97 (245) 1,350 H1 2023 Impairment^ FX impact IOH tower NMTC legal H1 2023 H1 2022 FX imp
Slide 14: Net Profit | Q2 2023 Reported and Normalized
Net Profit | Q2 2023 Reported and Normalized Q2 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +1% +26% 827 834 831 661 Q2 2022 Reported Q2 2023 Reported Q2 2022 Normalized Q2 2023 Normalized • Q2 2023 Net Profit excl. FX impact & impairment increased by 26% YoY reaching QAR 831 millio
Slide 15: Net Profit | Q2 2023 Reported to Normalized reconciliation
Net Profit | Q2 2023 Reported to Normalized reconciliation Q2 2023 Net Profit reported to Q2 2023 normalized Q2 2022 Net Profit reported to Q2 2022 normalized (QARmn) (QARmn) 834 72 (75) 831 827 79 (245) 661 Q2 2023 Impairment on FX impact Q2 2023 Q2 2022 FX impact Data centre sale gain Q2 2022 Repo
Slide 16: Capex
Capex Group Capex H1 2023 (QAR mn) & Capex / Revenue % H1 2023 (Change %) MAL 52 -10% IRA 20 965 873 PAL 15 OMA 15 TUN 7 KUW -9 ALG -28 9% 8% QAT -34 1H-22 1H-23 MYN -52 Capex breakdown (H1 2023) Capex will ramp up in H2; H1 summary: • Tunisia: Driven by investments in Fibre & TDD projects OMA QAT 2
Slide 17: Free Cash Flow (FCF: EBITDA – Capex)
Free Cash Flow (FCF: EBITDA – Capex ) Group FCF H1 2023 Q2 2023 YoY Change (QAR mn) Amount (QAR mn) and % - quarterly +2% +2% 3,859 3,939 +29 14 6 3 77 (2) (8) (13) 111 (77) 1,927 1,898 (82) Group Iraq Algeria Kuwait Tunisia Palestine Maldives Myanmar Oman Others Qatar Group 1H-22 1H-23 Q2 2022 Q2 2
Slide 18: Customer base
Customer base Total Customers at H1 2023 YoY Change (‘000) (mn) +3% +1,414 +3% 161 77 29 23 56,205 192 186 54.8 56.2 767 195 (218) 54,791 Group Iraq Myanmar Kuwait Oman Algeria Tunisia Palestine Maldives Qatar Group Q2 2022 Q2 2023 1H-22 1H-23 Customers breakdown Summary (H1 2023) KUW PAL MAL • Cont
Slide 19: Group Results: H1 2023 Actual & FY 2023 Guidance
Group Results H1 2023 Actual & FY 2023 Guidance Group Finance KPIs 1H-23 % change (H1 YoY) 2023 Guidance targets Revenue QAR 11.4 billion +3% Flat EBITDA margin -1pp ~ low 40%’s 42% (normalized +0.4pp) Capex QAR 873 million -10% ~QAR 3 billion • On track to meet guidance • Revenue ahead of guidance
Slide 20: Debt Profile
Debt Profile QAR’mn Strong investment grade rating Repayment schedule Fixed vs Floating rate debt portion • Net debt/ EBITDA ratio of 1.1x, below current board guidance of 1.5x to 2.5x • Strong liquidity position (combination of Cash and undrawn RCFs ) • RCF facilities expiring in 2023 and 2024 have
Slide 21: Contents: Operations review
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 21
Slide 22: Qatar
Qatar QAR mn Quarterly Trend (QAR mn) Revenue EBITDA EBITDA Margin Revenue EBITDA -4% -81 2,222 YTD - 23 YTD - 23 1,899 1,952 1,948 1,818 3,766 1,810 -1% -6% 50% 51% 47% 44% 45% YoY YoY EBITDA Margin 953 911 988 988 822 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 48% -3pp YoY H1 2023 QAR mn • Revenue down
Slide 23: Kuwait
Kuwait QAR mn Quarterly Trend (KWD mn) Revenue EBITDA EBITDA Margin Revenue EBITDA +3% +4 63 59 60 60 60 YTD - 23 YTD - 23 1,460 451 4% 7% 31% 30% 31% 32% 30% YoY YoY 19 19 EBITDA Margin 19 18 18 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 31% 1pp H1 2023 YoY KWD mn • Healthy revenue growth, up 5% in LC Yo
Slide 24: Oman
Oman QAR mn Quarterly Trend (OMR mn) Revenue EBITDA EBITDA Margin Revenue EBITDA -1% 0 68 66 YTD - 23 64 64 YTD - 23 61 1,230 588 1% -10% 54% 52% 51% YoY 47% 48% YoY EBITDA Margin 35 35 31 31 31 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 48% -5pp YoY H1 2023 OMR mn • Revenue grew by 1% YoY, in a highly co
Slide 25: Iraq
Iraq QAR mn Quarterly Trend (IQD bn) Revenue EBITDA EBITDA Margin Revenue EBITDA +12% +43 392 395 386 393 350 YTD - 23 YTD - 23 2,024 925 45% 46% 43% 44% 41% 16% 23% YoY YoY 174 163 173 182 EBITDA Margin 151 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 YTD-23 46% 2pp IQD mn YoY H1 2023 • Solid revenue growth, up b
Slide 26: Algeria
Algeria QAR mn Quarterly Trend (DZD bn) Revenue EBITDA EBITDA Margin Revenue EBITDA +1% +1 YTD - 23 YTD - 23 23 22 21 22 21 1,170 463 8% 17% YoY YoY 40% 40% 39% 35% 29% EBITDA Margin 8 9 8 9 6 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 40% 3pp DZD mn YoY H1 2023 Mobile Fixed • Strong performance supported
Slide 27: Tunisia
Tunisia QAR mn Quarterly Trend (TND mn) Revenue EBITDA EBITDA Margin Revenue EBITDA +1% +4 YTD - 23 YTD - 23 332 307 307 707 247 303 293 -5% -24% YoY YoY 44% 46% 44% 41% EBITDA Margin 29% 135 152 135 125 85 YTD-23 35% Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 -9pp YoY H1 2023 TND mn Mobile Fixed • Revenue decli
Slide 28: Myanmar
Myanmar QAR mn Quarterly Trend (MMK bn) Revenue EBITDA EBITDA Margin +5% Revenue EBITDA +7 138 138 138 145 136 YTD - 23 YTD - 23 438 172 -20% -24% 41% 39% 36% 36% 38% YoY YoY 54 49 49 51 60 EBITDA Margin Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 YTD-23 39% -2pp YoY H1 2023 MMK mn • Revenue up by 4% in LC terms
Slide 29: Maldives
Maldives QAR mn Quarterly Trend (MVR mn) Revenue EBITDA EBITDA Margin Revenue EBITDA +8% +36 YTD - 23 500 514 502 YTD - 23 466 471 240 133 7% 8% YoY YoY 55% 53% 52% 55% 56% EBITDA Margin 283 280 257 249 260 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 55% 1pp YoY MVR mn H1 2023 Mobile Fixed • Revenue increa
Slide 30: Palestine
Palestine QAR mn Quarterly Trend (USD mn) Revenue EBITDA EBITDA Margin Revenue EBITDA -3% -1 YTD - 23 YTD - 23 29 30 28 28 28 203 82 -3% 5% YoY YoY 40% 41% 37% 37% 35% EBITDA Margin 11 11 10 11 11 YTD-23 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 41% 3pp YoY H1 2023 USD mn • Revenue increased YoY in local curren
Slide 31: Indonesia
7 N Cellular +8.4% Revenue *S:\ ARPU “@ USD 1,409 Mn IDR 21.2 Tn USD 2.38 +8.6% IDR35.8k QoQ Total Revenue USD 1,642 Mn IDR 2471 "10% PT Indosat Tbk. 1H 2023 Net Profit ae USD 127 Mn +5.4% IDR 19 Tn QoO EBITDA yN USD758Mn +24% IDR 114 Tn YoY we. i Data A EBITDA a oe Traffic br Margin +5.4bps e a 0S
Slide 32: IR updates
IR updates Conferences Capital Markets Day BoA MENA conference November 2023 Riyadh, 7-8 Nov 2023 Dubai, 9 Nov 2023 Date TBC QE and BoA/ML roadshow New York, 20-21 Nov 2023 || | | 32
Slide 33: Q&A
Q&A | |
Slide 34: Contents: Additional information
Contents 1 Strategy and vision 2 Results review 3 Financial review 4 Additional information | |
Slide 35: KPIs technology: Q2 2023
KPIs technology: Q2 2023 4G FDD Sites as % of 4G Population 5G Population 4G Contribution in total Data Volume Grow Country Total Sites Total Data Volume GB total towers Coverage % coverage % traffic % % Algeria 6,561 84.45% 75.60% n/a 570,254,198 82.85% 25.77% Iraq 7,535 98.98% 96.68% n/a 322,177,3
Slide 36: KPIs Commercial: Q2 2023
KPIs Commercial : Q2 2023 MyOoredoo Number of Churn Data users Digital Post paid as % Country Churn Mobile NPS App users RMS (*) complaints Fixed (‘000) recharge of total subs (‘000) per 1000 subs Algeria 3% N/A 33 7,641 119 95% N/A 1 9% Iraq 8% N/A 39 8,549 2,585 40% 55% 1 1% Kuwait 3% 2% 34 2,046
Slide 37: Dividend policy
Dividend policy • The Ooredoo Board has approved a sustainable and progressive dividend policy for the company, aiming for a dividend payout in the range of 40% to 60% of normalized earnings • Board paid a cash dividend of QAR 0.43 per share for 2022, dividend yield of 4.77% as of 12 Feb 2023 • Divi
Slide 38: Blended ARPU
Blended ARPU Qatar (QAR)* Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 113 114 110 104 21.8 43.2 69.9 67.9 22.7 23.0 100 41.3 40.5 67.8 66.8 67.4 19.3 19.6 37.9 39.5 18.8 21.3 21.0 21.2 16.1 Kuwait (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR) 10.1 10.2 62.3 62.0 61.8 61.3 61.7 15.2 9.7 9.
Slide 39: Opcos licence general information
Opcos licence general information Fixed Licence Mobile Licence Country Issuance date Expiry date Issuance date Expiry date Qatar 7 October 2007 6 October 2032 7 October 2007 6 October 2027 13 October 1997 Kuwait -- -- Indefinite Emiri Decree Iraq -- -- 30 August 2007 29 August 2030 Oman 6 June 2009
Slide 40: Statutory corporate income tax (CIT) rates
Statutory corporate income tax (CIT) rates Statutory Losses Carry Forward Country Comments Tax Rate Allowed Algeria 26% 4 years Indonesia 22% 5 years The Tax Rate is 22% for tax year 2022 onwards Iraq 15% 5 years GCC companies (including NMTC) are exempted, but are subject to 4.5% Kuwait 15% 3 years
Slide 41: Thank you
THANK YOU Upgrade your world. Upgrade your portfolio. @OoredooIR • IR@ooredoo.com • www.ooredoo.com | |