Ooredoo Q.p.s.c · QSE:ORDS
Ooredoo Q.p.s.c — Ooredoo — Q3 2023 Earnings Presentation
41 slides from Ooredoo Q.p.s.c's earnings presentation, Nov 6, 2023
Slide 1: Ooredoo Group Q3 2023 Results
OOREDOO GROUP Q3 2023 RESULTS 06 November 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: Presented by
Presented by: 1 Strategy and vision 2 Results review Operational review 3 Abdulla Ahmed Al Zaman Aziz Aluthman Fakhroo GCFO MD and GCEO | | 3
Slide 4: Contents
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
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 6
Slide 7: Group results | Key highlights for 9M 2023
Group results | Key highlights for 9M 2023 Sustained positive trajectory into Q3 2023, showcasing robust operational and financial results Revenue EBITDA and FCF Net Profit Updates Good revenue growth of 2% to Reported EBITDA grew 4% Healthy reported Net Profit up 28% to Exclusive negotiations with
Slide 8: Ooredoo Group | 9 Months 2023 YoY highlights
Ooredoo Group | 9 Months 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity - +2% +4% (+6%*) +1pp (+2pp*) Stable QAR17.2bn QAR7.4bn 43% 9% Free Cash Flow Net Profit Net Debt/EBITDA Customers +4% (+8%*) +28% to QAR2.7bn -0.3x +2% to 56.7mn +1%** to 156.1mn QAR5.8bn +19%* to QAR2.5bn 0.9
Slide 9: Ooredoo Group | Q3 2023 YoY highlights
Ooredoo Group | Q3 2023 YoY highlights Revenue EBITDA EBITDA margin Capex intensity +1% +12% (*+12%) +4pp (*+4pp) +2pp QAR5.8bn QAR2.6bn 44% 12% Free Cash Flow Net Profit Net Debt/EBITDA Customers +8% (+8%*) +49% to QAR0.9bn -0.3x +2% to 56.7mn +1%** to 156.1mn QAR1.9bn +16%* to QAR0.9bn 0.9x *Norma
Slide 10: Revenue
Revenue Group revenue 9M 2023 Q3 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly +2% +1% +65 30 12 10 16,854 17,240 62 35 -6% 4% 11% 3% -7% 231 47% -18% 11% (6) (45) (47) -11% 5.832 5.767 24% (218) Group Iraq Algeria Others Kuwait Maldives Tunisia Palestine Oman Myanmar Qatar Group Q3 202
Slide 11: EBITDA
EBITDA Group EBITDA 9M 2023 Q3 2023 YoY change (QAR mn) Amount (QAR mn) and % - Quarterly EBITDA margin (%) +12% +266 +4% 40 9 1 47 16% 3% -2% -17% 2,579 123 17% -2% -13% 7,391 22% (4) (15) 7,136 130 (22) (42) 75% 2,313 30% 42% 43% Group Iraq Others Kuwait Algeria Maldives Palestine Tunisia Myanmar
Slide 12: Net Profit | 9M 2023 Reported and Normalized
Net Profit | 9M 2023 Reported and Normalized 9M 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +28% +19% 2,664 2,534 2,083 2,134 9M 2022 Reported 9M 2023 Reported 9M 2022 Normalized 9M 2023 Normalized • Net Profit excl. FX impact & major one offs (NMTC legal case gain, impairment of Oo
Slide 13: Net Profit | 9M 2023 Reported to Normalized reconciliation
Net Profit | 9M 2023 Reported to Normalized reconciliation 9M 2023 Net Profit reported to 9M 2023 normalized 9M 2022 Net Profit reported to 9M 2022 normalized (QARmn) (QARmn) 250 (56) (139) 2,664 262 (446) 2,534 2,083 296 (245) 2,134 9M 2023 Impairment^ FX impact IOH tower Meeza NMTC legal 9M 2023 R
Slide 14: Net Profit | Q3 2023 Reported and Normalized
Net Profit | Q3 2023 Reported and Normalized Q3 2023 Net Profit attributable to Ooredoo shareholders (QARmn) +16% +49% 909 869 785 585 Q3 2022 Reported Q3 2023 Reported Q3 2022 Normalized Q3 2023 Normalized • Q3 2023 Net Profit excl. FX impact & impairment increased by 16% YoY reaching QAR 909 milli
Slide 15: Net Profit | Q3 2023 Reported to Normalized reconciliation
Net Profit | Q3 2023 Reported to Normalized reconciliation Q3 2023 Net Profit reported to Q3 2023 normalized Q3 2022 Net Profit reported to Q3 2022 normalized (QARmn) (QARmn) 87 (139) 785 909 869 92 199 585 Q3 2023 FX impact Impairment Meeza IPO gain Q3 2023 Q3 2022 FX impact Q3 2022 Reported Normal
Slide 16: Capex
Capex Group Capex 9M 2023 (QAR mn) & Capex / Revenue % 9M 2023 (Change %) MAL 99 +2% TUN 38 1,555 1,592 IRA 25 OMA 18 ALG 4 PAL -4 KUW -10 9% 9% QAT -26 9M-22 9M-23 MYN -44 Capex breakdown (9M 2023) 9M summary: PAL MYN Others MAL • Tunisia: Driven by investments in Fibre, Submarine & TDD projects KU
Slide 17: Free Cash Flow (FCF: EBITDA – Capex)
Free Cash Flow (FCF: EBITDA – Capex ) Group FCF 9M 2023 Q3 2023 YoY Change (QAR mn) Amount (QAR mn) and % - quarterly +4% +8% 5,799 +137 5,582 9 4 53 102 (11) (13) (20) 125 (48) 1,860 (64) 1,723 Group Others Iraq Kuwait Qatar Palestine Myanmar Maldives Algeria Tunisia Oman Group 9M-22 9M-23 Q3 2022
Slide 18: Customer base
Customer base Total Customers at 9M 2023 YoY Change (‘000) (mn) +2% +1221 +2% 148 96 36 16 5 197 181 56,715 55.5 56.7 803 (262) 55,494 Group Myanmar Algeria Oman Kuwait Tunisia Palestine Maldives Iraq Qatar Group Q3 2022 Q3 2023 9M-22 9M-23 Customers breakdown Summary (9M 2023) KUW PAL MAL • Grew ou
Slide 19: Group Results: 9M 2023 Actual & FY 2023 Guidance
Group Results 9M 2023 Actual & FY 2023 Guidance Group Finance KPIs 9M-23 % change (YoY) 2023 Guidance targets Revenue QAR 17.2 billion +2% Flat EBITDA margin 43% ~ low 40%’s +1pp Capex QAR 1.6 billion +2% ~QAR 3 billion • On track to meet guidance • Revenue ahead of guidance • CAPEX spend expected t
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 0.9x, below 4,785 655 5% current board guidance of 1.5x to 2.5x • Strong liquidity position (combination of 11,951 Cash and undrawn RCFs ) 9,907 95% 5,462 • RCF facil
Slide 21: Contents
Contents 1 Strategy and vision 2 Results review 3 Operations review 4 Additional information | | 21
Slide 22: Qatar
Qatar Quarterly Trend (QAR mn) 9M 23 (QAR mn, % YoY) -11% EBITDA -218 Revenue EBITDA Margin 2,222 - 1,952 1,948 1,818 1,734 5,500 2,699 49% 47% 51% 51% 44% 45% -4% -5% - 911 988 988 822 888 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (QAR mn, % YoY) 9M 2023 Mobile Fix
Slide 23: Kuwait
Kuwait Quarterly Trend (KWD mn) 9M 23 (QAR mn, % YoY) +4% +3 Revenue EBITDA EBITDA Margin 63 60 60 60 62 2,195 710 32% 35% 30% 31% 32% 30% 4% 12% 2pp 18 19 19 22 18 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (KWD mn, % YoY) 9M 2023 Mobile Fixed • Healthy revenue grow
Slide 24: Oman
Oman Quarterly Trend (OMR mn) 9M 23 (QAR mn, % YoY) -7% -5 Revenue EBITDA EBITDA Margin 68 66 61 64 63 1,828 878 48% 52% 51% 47% 48% 49% -2% -11% -5pp 35 31 31 31 31 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (OMR mn, % YoY) 9M 2023 Mobile Fixed • Revenue dropped by
Slide 25: Iraq
Iraq Quarterly Trend (IQD bn) 9M 23 (QAR mn, % YoY) +11% +42 Revenue EBITDA EBITDA Margin 434 392 395 386 393 3,221 1,483 46% 46% 47% 44% 41% 45% 19% 2pp 25% 174 173 182 202 163 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (IQD mn, % YoY) 9M 2023 Mobile Fixed • Maintai
Slide 26: Algeria
Algeria Quarterly Trend (DZD bn) 9M 23 (QAR mn, % YoY) +5% +1 Revenue EBITDA EBITDA Margin 24 23 22 22 21 1,806 732 41% 40% 39% 40% 42% 9% 17% 3pp 29% 9 8 9 10 6 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (DZD mn, % YoY) 9M 2023 Fixed Mobile • The operation continued
Slide 27: Tunisia
Tunisia Quarterly Trend (TND mn) 9M 23 (QAR mn, % YoY) 0% -1 Revenue EBITDA EBITDA Margin 332 331 307 293 307 1,096 417 38% -2% -16% -6pp 46% 44% 41% 44% 29% 152 135 125 144 85 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (TND mn, % YoY) 9M 2023 Mobile Fixed • Revenue
Slide 28: Myanmar
Myanmar Quarterly Trend (MMK bn) 9M 23 (QAR mn, % YoY) +2% +3 Revenue EBITDA EBITDA Margin 138 138 145 142 136 644 248 38% 41% 36% 36% 38% 37% -22% -1pp -19% 49 49 51 60 52 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (MMK mn, % YoY) 9M 2023 Mobile Fixed • Revenue up b
Slide 29: Maldives
Maldives Quarterly Trend (MVR mn) +11% 9M 23 (QAR mn, % YoY) +53 Revenue EBITDA EBITDA Margin 524 500 514 502 471 364 201 55% 55% 56% 55% 53% 52% 10% 1pp 8% 249 260 283 280 287 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (MVR mn, % YoY) 9M 2023 Mobile Fixed • Growth a
Slide 30: Palestine
Palestine Quarterly Trend (USD mn) 9M 23 (QAR mn, % YoY) -6% Revenue EBITDA EBITDA Margin -2 30 28 28 28 28 305 124 41% 37% 40% 41% 41% -4% 5% 3pp 35% 11 10 11 11 12 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Revenue EBITDA EBITDA Margin Revenue segments (USD mn, % YoY) 9M 2023 Mobile Fixed • Revenue increased Y
Slide 31: 9M2023 Results Indosat Ooredoo Hutchison
9M2023 Results indosat (OOREDOO HUTCHISON Normalized Net-Profit USD 143 Mn IDR 2.2 Tn @ 254.8% voy Normalized EBITDA Margin 46.7% @ 5.1% YoY Total Revenue USD 2.41Bn IDR 37.46 Tn ® 8.5% Yor Cellular Revenue USD 2.07 Bn IDR 32.17 Tn @ 7.8% YoY Normalized EBITDA USD 1.13 Bn IDR 17.49 Tn © 21.7% YoY Da
Slide 32: IR updates
IR updates Conferences (tbc) Capital Markets Day 2023 BoA MENA conference (afternoon slots still available) 2023 Wednesday, 6th December 2023 Dubai, 9 Nov Virtual event “Upgrade your portfolio!” Citi's Emerging Europe Conference HSBC Global Investment Summit London, 10 January Hong Kong, 8-10 April
Slide 33: Q&A
Q&A | |
Slide 34: Contents
Contents 1 Strategy and vision 2 Results review 3 Financial review 4 Additional information | | 34
Slide 35: KPIs technology: Q3 2023
KPIs technology: Q3 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 6,704 87.86% 77.00% n/a 904,101,634 83.78% 27.27% Iraq 7,664 97.90% 98.23% n/a 531,110,6
Slide 36: KPIs Commercial: Q3 2023 (9 months)
KPIs Commercial: Q3 2023 (9 months) 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% NA 34 7,667 441 96% NA 0 9% Iraq 8% NA 38 9,117 3,390 43% 55% 1 1% Kuwait 3% 2% 44
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) 114 23.8 110 71.3 104 104 21.8 69.9 67.9 23.0 100 41.3 40.5 66.8 67.4 19.3 19.6 37.9 39.5 39.4 18.8 21.3 21.0 21.2 20.9 Kuwait (QAR) Tunisia (QAR) Algeria (QAR) Myanmar (QAR) 10.1 10.2 62,0 61.8 61.3 61.7 61.6 15.2 16.1 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 Iraq 15% 5 years GCC companies (including NMTC) are exempted, but are subject to 4.5% Kuwait 15% 3 years Zakat, KFAS & National Labour Support Tax on consolidated profits M
Slide 41: Thank you
THANK YOU Upgrade your world. Upgrade your portfolio. @OoredooIR • IR@ooredoo.com • www.ooredoo.com | |