Slide 1: Ooredoo Group Results Presentation
04 November 2024 OOREDOO GROUP RESULTS PRESENTATION For the period ended 30 September 2024
Slide 2: Disclaimer
Disclaimer ▪ Ooredoo (parent company Ooredoo Q.P.S.C.) and the group of companies which it forms part of (“Ooredoo Group”) caution 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 review Operations review Results review Aziz Abdulla Aluthman Ahmed Fakhroo Al-Zaman Group CEO Group CFO | 4 November 2024 |
Slide 4: Strategy Review
01 STRATEGY REVIEW Aziz Aluthman Fakhroo | Group CEO | |
Slide 5: Transforming Ooredoo into the region's leading digital infrastructure provider
Vision Enriching people’s digital lives Our Strategy (2022-2024) Excellence in Value Focused Portfolio [Reduce Asset Base With Better External Use] Customer Experience [Protect & grow our customer asset] People Strengthen the Core [Build skills, talent & ways of working [Drive profitability in our c
Slide 6: Strategy update
Strategy update Making strides towards becoming the MENA region's digital infrastructure provider of choice Major milestone: Secured QAR 2 billion through a significant financing deal to accelerate the expansion of our data centre business Towers Data centres Fintech • Primary focus remains on final
Slide 7: Successful financing initiatives
Successful financing initiatives To power future growth and evolution of Ooredoo into the region’s leading digital infrastructure provider Secured QAR 2 billion Raised USD 500 million facility through bond issuance • Signed with QNB, Doha Bank and Masraf Al Rayan • On October 10, 2024, Ooredoo compl
Slide 8: Results Review
02 RESULTS REVIEW Aziz Aluthman Fakhroo | Group CEO | |
Slide 9: Group results 9M 2024 | Snapshot
Group results 9M 2024 | Snapshot Maintaining a strong growth trajectory while driving consistent profitability Revenue Net Profit QAR 17.7 billion QAR 2.9 billion +2% YoY +10% (normalised +15%**) YoY EBITDA Free cashflow QAR 7.7 billion QAR 5.8 billion +4% (normalised +5%*) YoY -1% (normalised flat*
Slide 10: Group 9M 2024 YoY highlights
Group 9M 2024 YoY highlights Continuing to deliver solid commercial and financial momentum +2% +4% +1pp +2pp to 11% +5%* +1pp* Capex intensity Revenue EBITDA EBITDA margin Capex QAR 17.7 billion QAR 7.7 billion 44% QAR 1.9 billion -1% +10% -0.3x +5%*** Flat* +15%* -4%** Free cashflow Net Profit Net
Slide 11: Group Q3 2024 YoY highlights
Group Q3 2024 YoY highlights Robust performance in Q3 - - +1% Flat Flat +4pp to 16% Capex intensity Revenue EBITDA EBITDA margin Capex QAR 5.9 billion QAR 2.6 billion 44% QAR 0.9 million -11% +21% -0.3x +5%*** +15%* -4%** Free cashflow Net Profit Net debt/EBITDA Customers QAR 1.6 billion QAR 1.1 bil
Slide 12: Revenue
Revenue Healthy operational performance across most operating companies supports revenue growth Group revenue Quarterly YoY change QAR mn QAR mn and % Quarterly +2% +1% +29 17,240 17,657 23 22 5 116 4% -1% -2% 3% 6% -2% 162 18% >100% (1) (11) (37) (43) -100% 5,832 14% 5,861 (206) 9M-23 9M-24 Group I
Slide 13: EBITDA
EBITDA Continued revenue growth and focus on operational efficiencies drives EBITDA growth and margin expansion Group EBITDA and margin Quarterly YoY change QAR mn QAR mn and % - Quarterly +4% 0% +6 7,698 15 3 1 7,391 76 2% 2% 2% -10% -7% 91 28% (4) -54% (21) (22) -22% 2,579 16% (58) -100% 2,585 43%
Slide 14: Net Profit | 9M 2024 Reported and Normalised
Net Profit | 9M 2024 Reported and Normalised Ongoing benefit from healthy operational growth 9M 2024 Net profit attributable to Ooredoo shareholders (QAR mn) Reported Normalised +10% +15% 2,923 2,903 2,664 2,534 9M-23 9M-24 9M-23 9M-24 • Normalised Net Profit (excludes FX impact, impairments & major
Slide 15: Net Profit | 9M 2024 Reported to Normalised reconciliation
Net Profit | 9M 2024 Reported to Normalised reconciliation 9M 2024 9M 2023 Net Profit reported to normalised Net Profit reported to normalised (QAR mn) (QAR mn) 2,923 4 2,903 (56) 94 (118) 250 2,664 262 (446) (139) 2,534 9M-24 FX impact Impairment^ Myanmar 9M-24 9M-23 Impairment^ FX impact IOH tower
Slide 16: Net Profit | Q3 2024 Reported and Normalised
Net Profit | Q3 2024 Reported and Normalised Q3 YoY growth in Net Profit Q3 2024 Net profit attributable to Ooredoo shareholders (QAR mn) Reported Normalised +21% +15% 1,051 1,042 909 869 Q3-23 Q3-24 Q3-23 Q3-24 • Normalised Net Profit (excludes FX impact, impairments & major one-offs) increased by
Slide 17: Net Profit | Q3 2024 Reported to Normalised reconciliation
Net Profit | Q3 2024 Reported to Normalised reconciliation Q3 2024 Q3 2023 Net Profit reported to normalised Net Profit reported to normalised (QAR mn) (QAR mn) 1,051 1,042 1 (10) 87 (139) 909 869 92 Q3-24 Impairment FX impact Q3-24 Q3-23 FX impact Impairment Meeza IPO gain Q3-23 Reported Normalised
Slide 18: Capex
Capex Targeted investments for strong returns | FY24 Capex guidance of ~QAR 3.5 billion Group Capex 9M 2024 (QAR mn) | Capex / Revenue % 9M 2024 (Change %) +22% Kuwait 59 Iraq 53 1,946 Algeria 15 1,592 Oman 19 Palestine 12 Tunisia 10 11% Qatar 1 9% Maldives -23 9M-23 9M-24 Myanmar -43 Capex breakdow
Slide 19: Free cash flow (FCF: EBITDA – Capex)
Free cash flow (FCF: EBITDA – Capex) Strong EBITDA performance offset by an acceleration in Capex projects Group FCF Quarterly YoY change QAR mn QAR mn and % Quarterly -1% -11% 5,799 5,753 -210 34 3 89 1,860 (3) (4) (23) >100% (53) (64) (77) 1,650 (113) 9M-23 9M-24 Group Algeria Qatar Tunisia Maldiv
Slide 20: Customers
Customers Customer satisfaction and focus on innovation is attracting more customers to the network Consolidated customers YoY change mn ‘000 +5% -11% 56.7 -6,001 48.3 50.7 1,482 1,294 115 26 8 3 56,715 >100% (262) (297) 50,714 (8,369) 9M-23 9M-23 (excl 9M-24 Group Iraq Algeria Palestine Qatar Maldi
Slide 21: Debt Profile
Debt Profile Upholding a strong financial and liquidity position, sustaining an investment-grade rating QAR’mn Repayment schedule Fixed vs Floating rate debt portion Summary 5,222 255 • Net Debt/EBITDA ratio of 0.6x, below current Board guidance 2% of 1.5x to 2.5x 12,389 • Strong liquidity position
Slide 22: FY 2024 guidance reaffirmed
FY 2024 guidance reaffirmed Solid performance for the first 9 months of 2024 – on track to meet guidance 9M 2024 Guidance Revenue QAR 17.7 billion +2% YoY Flat EBITDA margin 44% +1pp YoY ~ low 40’s Capex QAR 1.9 billion +22% YoY ~ QAR 3.5 billion || | | 22
Slide 23: Operations Review
03 OPERATIONS REVIEW Abdulla Al Zaman | Group CFO | |
Slide 24: Qatar
Qatar Increasing customer base while maintaining a strong EBITDA margin 9M 2024 Quarterly Trend (QAR mn) (QAR mn, % YoY) -2% -37 1,734 1,786 1,816 1,763 5,276 2,804 53% 1,697 -4% 4% 4pp 51% 51% 52% 54% 53% Revenue EBITDA EBITDA margin 948 952 888 904 904 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITDA
Slide 25: Kuwait
Kuwait Solid topline growth sustained by higher service revenue 9M 2024 Quarterly Trend (KWD mn) (QAR mn, % YoY) +2% +1 68 62 64 64 2,328 607 26% 61 6% -15% -6pp 35% 36% Revenue EBITDA 29% 27% EBITDA 23% margin 22 22 20 17 15 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITDA EBITDA Margin Revenue segment
Slide 26: Oman
Oman Resilient EBITDA margin maintained in a highly competitive market 9M 2024 Quarterly Trend (OMR mn) (QAR mn, % YoY) -2% -1 63 66 64 62 62 1,786 824 46% -2pp -2% -6% 49% 44% 46% 47% 46% Revenue EBITDA EBITDA margin 31 29 30 29 28 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITDA EBITDA Margin Revenue
Slide 27: Iraq
Iraq Impressive growth maintained in favourable market conditions 9M 2024 Quarterly Trend (IQD bn) (QAR mn, % YoY) +14% +59 493 446 438 463 434 3,847 1,825 47% 1pp 19% 23% 47% 46% 48% 48% 38% Revenue EBITDA EBITDA margin 202 203 223 235 170 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITDA EBITDA Margin
Slide 28: Algeria
Algeria Impressive revenue and EBITDA growth supported by high-quality network and operational efficiencies 9M 2024 Quarterly Trend (DZD bn) (QAR mn, % YoY) +16% +4 28 24 24 25 24 2,097 907 43% 16% 24% 3pp 46% 42% 40% 43% 41% Revenue EBITDA EBITDA margin 13 10 10 10 10 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24
Slide 29: Tunisia
Tunisia Targeted investments and operational efficiency support a healthy performance 9M 2024 Quarterly Trend (TND mn) (QAR mn, % YoY) +5% +16 331 347 322 308 319 1,142 470 41% 4% 13% 3pp 44% 37% 40% 41% 42% Revenue EBITDA EBITDA margin 144 120 122 132 146 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITD
Slide 30: Maldives
Maldives Solid revenue growth across all segments | Became the largest 5G network in the country 9M 2024 Quarterly Trend (MVR mn) (QAR mn, % YoY) +4% +20 557 554 541 544 387 207 54% 524 6% 3% -2pp 55% 59% 53% 54% 54% Revenue EBITDA EBITDA margin 328 287 296 290 292 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Reve
Slide 31: Palestine
Palestine Navigating with resilience | Ensuring customers remain connected 9M 2024 Quarterly Trend (USD mn) (QAR mn, % YoY) -1% 0 28 28 28 299 115 39% 25 27 -2% -7% -2pp 41% 38% 40% 38% EBITDA 34% Revenue EBITDA margin 12 10 11 10 8 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Revenue EBITDA EBITDA Margin Revenue
Slide 32: IOH | Solid indicators overall
IOH | Solid indicators overall Revenue (IDR tn) EBITDA (IDR tn) & margin +12% +15% 41.8 19.9 37.5 17.4 48% 46% 9M-23 9M-24 9M-23 9M-24 Net Profit (IDR tn) Customers (mn) +39% -1% 4.2 99.4 98.7 3.0 9M-23 9M-24 9M-23 9M-24 Share in Net profit of IOH of 32.8% is reported by 32 Ooredoo Group above EBITD
Slide 33: Appendix
04 APPENDIX | |
Slide 34: KPIs Technology: Q3 2024
KPIs Technology: Q3 2024 4G FDD Sites as % 4G Population 5G Population 4G Contribution in Data Volume Country Total Sites Total Data Volume GB of total towers Coverage % coverage % total traffic % Grow % Algeria 7,802 95.91% 92.00% 1,215,093,416 91.36% 34.40% Iraq 7,874 99.52% 98.46% 806,648,934 91.
Slide 35: KPIs Commercial: 9M 2024
KPIs Commercial: 9M 2024 Number of MyOoredoo Post paid as Churn Churn Data users Digital complaints Country NPS* App users RMS ** % of total Mobile Fixed (‘000) recharge per 1000 (‘000) subs subs Algeria 3% - 36 8,408 1,310 97% 48% 1 14% Iraq 7% - 43 10,418 4,474 49% 57% 2 2% Kuwait 3% 2% 51 2,114 1
Slide 36: Shareholder returns | Dividends
Shareholder returns | Dividends Dividend policy – effective 2019 Dividend history 59.6% 59.1% Payout ratio Sustainable & progressive dividend policy, 48.9% 55.0% 40.0% aiming for a dividend payout in the range of 40% to 60% of normalised earnings^ 0.55 0,55 5,5 5.2% 0,50 4.7% 5,0 0,45 4.3% 0.43 4,5
Slide 37: Blended ARPU
Blended ARPU Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 104 104 71.3 72.0 70.8 70.3 103 101 102 24.8 68.3 23.8 23.4 39.4 38.4 40.2 22.6 22.8 36.3 38.1 20.9 19.7 19.1 18.1 18.5 Kuwait (QAR) Tunisia (QAR) Algeria (QAR) 17.2 16.7 61.6 61.6 61.1 16.1 16.4 16.4 60.8 60.8 16.0 14.8 1
Slide 38: 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 8 June 2009
Slide 39: Statutory corporate income tax (CIT) rates
Statutory corporate income tax (CIT) rates Statutory Losses Carry Forward Country Comments CIT rate Allowed Algeria 26% 4 years Iraq 15% 5 years GCC companies (including NMTC) are exempted from CIT, but are Kuwait 15% 3 years subject to 4.5% Zakat, KFAS & National Labour Support Tax on consolidated
Slide 40: Thank You
THANK YOU Upgrade your world. Upgrade your portfolio. @OoredooIR • IR@ooredoo.com • www.ooredoo.com Download our IR app | |