Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — H1 2024 Earnings Presentation
41 slides from Ooredoo Q.p.s.c's earnings presentation, Aug 5, 2024
Slide 1: H1 2024 Results
H1 2024 RESULTS 05 August 2024 OOREDOO GROUP
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 1 Strategy review 2 Results review 3 Operations review Aziz Abdulla Aluthman Ahmed Fakhroo Al-Zaman Group CEO Group CFO | 5 August 2024 |
Slide 4: Strategy Review
01 STRATEGY REVIEW Aziz Fakhroo | Group CEO | |
Slide 5: Positioning Ooredoo as the leading digital infrastructure provider in the region
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 Progressing in our transformation into a telecom and infrastructure holding company Towers Data centres Fintech • Established MENA Digital Hub, carrier neutral DC • PSP license granted in Oman • Focus on closing transaction in each market company • Progressing on closing Qatar • ‘wal
Slide 7: Ooredoo at the forefront of Artificial Intelligence in the region
Ooredoo at the forefront of Artificial Intelligence in the region Pioneering deal in the MENA region Strategic collaboration • Aligned with our strategy of becoming the leading digital infrastructure provider in the region • Pioneering deal signed to deploy NVIDIA’s advanced AI technology across our
Slide 8: Results Review
02 RESULTS REVIEW Aziz Fakhroo | Group CEO | |
Slide 9: Group results H1 2024 | Snapshot
Group results H1 2024 | Snapshot Solid financial performance | Tangible progress on strategic priorities Robust topline growth Key updates Driving profitability & cash generation Revenue Net Profit Myanmar Completed disposal of QAR 11.8 billion QAR 1.9 billion Ooredoo Myanmar +3% YoY +4% (normalized
Slide 10: Group H1 2024 YoY highlights
Group H1 2024 YoY highlights Solid commercial and financial performance reflecting successful cost management and sustained customer satisfaction +3% +6% +1pp +1pp to 9% +8%* +2pp* Capex intensity Revenue EBITDA EBITDA margin Capex QAR 11.8 billion QAR 5.1 billion 43% QAR 1.0 billion +4% +4% -0.5x +
Slide 11: Group Q2 2024 YoY highlights
Group Q2 2024 YoY highlights Growth momentum carried forward into Q2 +3% +7% +2pp +2pp to 11% Capex intensity Revenue EBITDA EBITDA margin Capex QAR 5.9 billion QAR 2.6 billion 43% QAR 0.6 million +1% +15% -0.5x +4%*** +3%* +2%** Free cashflow Net Profit Net debt/EBITDA Customers QAR 1.9 billion QAR
Slide 12: Revenue
Revenue Growth supported by strong operational performance across most operating companies Group revenue Quarterly YoY change QAR mn QAR mn and % Quarterly +3% +3% +160 11,409 11,796 9 8 59 85 8% 2% -1% -2% 192 8% -3% 5,934 14%>100% (1) (15) (42) -38% 5,774 18% (55) (81) H1 23 H1 24 Group Iraq Alger
Slide 13: EBITDA
EBITDA Solid topline growth and cost discipline underpins EBITDA growth and margin expansion Group EBITDA and margin Quarterly YoY change QAR mn QAR mn and % - Quarterly +6% +7% +164 5,114 40 12 6 2 4,812 112 4% 4% -3% -6% 17% 5% -46% 130 (1) (18) -374% 2,568 22% (41) 2,404 16% (78) 42% 43% H1 23 H1
Slide 14: Net Profit | H1 2024 Reported and Normalized
Net Profit | H1 2024 Reported and Normalized Enhanced profitability benefitting from strong operational growth H1 2024 Net profit attributable to Ooredoo shareholders (QAR mn) Reported Normalized +4% +14% 1,871 1,861 1,795 1,625 H1 2023 H1 2024 H1 2023 H1 2024 • Normalized Net Profit (excludes FX im
Slide 15: Net Profit | H1 2024 Reported to Normalized reconciliation
Net Profit | H1 2024 Reported to Normalized reconciliation H1 2024 H1 2023 Net Profit reported to normalized Net Profit reported to normalized (QAR mn) (QAR mn) 1,871 104 3 (118) 1,861 (56) 158 1,795 175 (446) 1,625 H1 2024 FX impact Impairment^ Myanmar H1 2024 H1 2023 Impairment of FX impact IOH to
Slide 16: Net Profit | Q2 2024 Reported and Normalized
Net Profit | Q2 2024 Reported and Normalized Q2 YoY growth in Net Profit Q2 2024 Net profit attributable to Ooredoo shareholders (QAR mn) Reported Normalized +15% +3% 959 834 831 857 Q2 2023 Q2 2024 Q2 2023 Q2 2024 • Normalized Net Profit (excludes FX impact, impairments & major one-offs) increased
Slide 17: Net Profit | Q2 2024 Reported to Normalized reconciliation
Net Profit | Q2 2024 Reported to Normalized reconciliation Q2 2024 Q2 2023 Net Profit reported to normalized Net Profit reported to normalized (QAR mn) (QAR mn) 959 14 2 834 831 (118) 857 72 (76) Q2 2024 FX impact Impairment Myanmar Q2 2024 Q2 2023 AMH impairment FX impact Q2 2023 Reported disposal
Slide 18: Capex
Capex Disciplined and strategic investment to maintain ‘best in class’ network | FY24 Capex guidance of ~QAR 3.5 billion Group Capex H1 2024 (QAR mn) | Capex / Revenue % H1 2024 (Change %) +16% Algeria 40 Kuwait 24 1,011 873 Iraq 19 Tunisia 19 Palestine 16 Qatar 13 Oman 2 8% 9% Myanmar -5 H1 23 H1 2
Slide 19: Free cash flow (FCF: EBITDA – Capex)
Free cash flow (FCF: EBITDA – Capex ) Strong cash generation on the back of solid EBITDA performance Group FCF Quarterly YoY change QAR mn QAR mn and % Quarterly +4% +1% 4,103 +12 3,939 14 6 60 17 (4) (6) 134 >100% (37) (82) 1,927 1,939 (91) H1 23 H1 24 Group Qatar Iraq Maldives Tunisia Kuwait Pales
Slide 20: Customers
Customers Maintained exceptional customer experience and grew our base Consolidated customers YoY change mn ‘000 +4% -12% 56.2 -6,525 47.7 49.7 1,235 709 130 45 17 4 56,205 >100% (17) (191) 49,680 (8,457) H1 23 H1 23 (excl H1 24 Group Iraq Algeria Palestine Kuwait Qatar Maldives Tunisia Oman Myanmar
Slide 21: Debt Profile
Debt Profile Strong liquidity | Investment grade rating QAR’mn Repayment schedule Fixed vs Floating rate debt portion Summary 339 5,226 3% • Net Debt/EBITDA ratio of 0.6x, below current Board guidance of 1.5x to 2.5x 10,969 5,462 2,990 • Strong liquidity position (combination of cash & undrawn RCFs
Slide 22: Progress against FY 2024 guidance
Progress against FY 2024 guidance Solid performance in H1 2024 positioning us on track to meet guidance targets H1 2024 Guidance Revenue QAR 11.8 billion +3% YoY Flat EBITDA margin 43% +1pp ~ low 40’s Capex QAR 1.0 billion +16% YoY ~ QAR 3.5 billion || | | 22
Slide 23: Operations Review
03 OPERATIONS REVIEW Abdulla Al Zaman | Group CFO | |
Slide 24: Qatar
Qatar Growth in customer base | Improved EBITDA margin H1 2024 Quarterly Trend (QAR mn) (QAR mn, % YoY) -3% -55 1,818 1,734 1,786 1,816 1,763 3,579 1,900 53% -5% 5% 5pp 51% 51% 52% 54% 45% Revenue EBITDA EBITDA margin 822 888 904 948 952 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Rev
Slide 25: Kuwait
Kuwait Healthy underlying performance H1 2024 Quarterly Trend (KWD mn) (QAR mn, % YoY) +8% +5 68 63 64 1,571 406 26% 62 61 8% -10% -5pp 35% 36% Revenue EBITDA 30% 29% EBITDA 23% margin 19 22 22 20 15 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Revenue segments (KWD mn, % YoY) H1 2024
Slide 26: Oman
Oman Solid EBITDA margin | Performance impacted by intense competitive environment H1 2024 Quarterly Trend (OMR mn) (QAR mn, % YoY) -2% -2 64 63 66 64 62 1,198 555 46% -3% -6% -1pp 48% 49% 44% 46% 47% Revenue EBITDA EBITDA margin 31 31 29 30 29 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Mar
Slide 27: Iraq
Iraq Healthy revenue and EBITDA growth H1 2024 Quarterly Trend (IQD bn) (QAR mn, % YoY) +18% +70 446 463 434 438 2,486 1,176 47% 393 23% 27% 2pp 46% 47% 46% 48% 38% Revenue EBITDA EBITDA margin 202 203 223 182 170 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Revenue segments (IQD bn, %
Slide 28: Algeria
Algeria Strong performance with double-digit revenue and EBITDA growth H1 2024 Quarterly Trend (DZD bn) (QAR mn, % YoY) +13% +3 24 24 25 24 22 1,345 563 42% 15% 21% 2pp 42% 43% 41% 40% 40% Revenue EBITDA EBITDA margin 9 10 10 10 10 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Revenue s
Slide 29: Tunisia
Tunisia Good performance backed by strategic investment in the fixed business H1 2024 Quarterly Trend (TND mn) (QAR mn, % YoY) +4% +12 331 322 319 307 308 731 297 41% 3% 20% 6pp 44% 41% 37% 40% 41% Revenue EBITDA EBITDA margin 125 144 120 122 132 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA M
Slide 30: Maldives
Maldives Solid performance with revenue growth across all segments H1 2024 Quarterly Trend (MVR mn) (QAR mn, % YoY) +8% +39 524 557 554 541 259 138 54% 502 8% 4% -2pp 56% 55% 59% 53% 54% Revenue EBITDA EBITDA margin 280 287 328 296 290 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Reven
Slide 31: Palestine
Palestine Provided ongoing support to customers ensuring they remain connected H1 2024 Quarterly Trend (USD mn) (QAR mn, % YoY) -1% 0 198 77 39% 28 28 27 28 25 -2% -6% -1pp EBITDA 41% 41% 38% 40% Revenue EBITDA 34% margin 11 12 10 11 8 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Revenue EBITDA EBITDA Margin Reven
Slide 32: IOH | Delivering on all fronts
IOH | Delivering on all fronts Revenue (IDR tn) EBITDA (IDR tn) & margin +13% +18% 28.0 13.3 24.7 11.3 48% 46% H1 23 H1 24 H1 23 H1 24 Net Profit (IDR tn) Customers (mn) +43% +1% 2.9 100 101 2.0 H1 23 H1 24 H1 23 H1 24 Share in Net profit of IOH of 32.8% is reported by Ooredoo Group above EBITDA 32
Slide 33: IR updates
IR updates Upcoming conferences (tbc) Investor Relations App EFG-Hermes London, 11-12 September Download our IR app and keep up-to-date with the latest Bank of America and QSE developments at Ooredoo New York, 12-13 November Capital markets day November 2024 Date TBC || | | 33
Slide 34: Appendix
04 APPENDIX | |
Slide 35: KPIs Technology: Q2 2024
KPIs Technology: Q2 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 7,588 94.28% 86.70% n/a 782,269,239 89.90% 37.18% Iraq 7,746 99.46% 98.46% n/a 515,778,7
Slide 36: KPIs Commercial: H1 2024
KPIs Commercial: H1 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 4% - 35 8,040 1,200 96% 48% 0.5 15% Iraq 7% - 43 10,073 3,881 49% 57% 1.5 1% Kuwait 3% 2% 51 2,0
Slide 37: 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 normalized earnings^ 0.55 0,55 5,5 5.2% 0,50 4.7% 5,0 0,45 4.3% 0.43 4,5
Slide 38: Blended ARPU
Blended ARPU Qatar (QAR) Iraq (QAR) Oman (QAR) Maldives (QAR) Palestine (QAR) 104 104 104 71.3 72.0 70.8 70.3 103 101 24.8 67.4 23.8 22.8 39.5 39.4 38.4 38.1 21.8 22.6 36.3 21.2 20.9 19.7 19.1 18.1 Kuwait (QAR) Tunisia (QAR) Algeria (QAR) 14.8 16.7 61.7 61.6 60.8 60.8 61.6 16.1 16.4 16.4 14.4 15.3 1
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 8 June 2009
Slide 40: 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 41: Thank You
THANK YOU Upgrade your world. Upgrade your portfolio. @OoredooIR • IR@ooredoo.com • www.ooredoo.com | |