Ooredoo Profits Down by a Third on Higher Costs and Currency Wobbles
Published on: 5th Mar 2014
By: Ian Mansfield
Qatar based Ooredoo (formerly Qatar Telecom) has announced a one third plunge in its fourth quarter profits as the company was hurt by currency fluctuations and the cost of starting up its operations in Myanmar.
Ooredoo Myanmar plans to launch 3G only services within six months to the main population areas of Myanmar.
The Group as a whole though saw fourth-quarter revenue fall by 3.1% to QAR8.7 billion (USD2.4 billion), while net profit was down by 35.5% to QAR 510 million (USD140 million).
Dr. Nasser Marafih, Group Chief Executive Officer of Ooredoo said that "Ooredoo Algeria delivered strong revenue and EBITDA growth, with Ooredoo Qatar and Nawras also performing well. Indosat secured good customer growth and is seeing increasing mobile data traffic and revenue in its modernised network. Wataniya Kuwait now has the market's leading next generation network and it is beginning to win back market share and perform financially in a highly competitive market. Asiacell performed well with strong growth in customer numbers despite the increasing levels of competition in Iraq."
For the full year, revenue was up slightly at QAR33.85 billion, while net profit was down by 12.5% to QAR2.58 billion.
Commenting on the results, His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of Ooredoo said: "Ooredoo has produced solid revenue growth in 2013 a year in which the Group faced challenges as well as opportunities."