Ooredoo Group delivered a robust performance during the third quarter of 2024, displaying growth across most key financial metrics.
The Group’s revenue increased by 2% YoY to QAR 17.7 billion, driven by strong operational performance in Iraq, Algeria, Kuwait, Tunisia, and the Maldives.
The increase in revenue across the Group demonstrates a positive return on its investments while ensuring excellence in customer service. The combination of fixed asset investments, the introduction of new and innovative products and improved customer satisfaction across its markets has supported the Group’s bottom line and delivered sustained growth.
Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, Chairman of Ooredoo, said, “The Group continues to reap the benefits of the initiatives undertaken over recent years to transform our operational model, focusing on high-value assets and achieving high-quality growth across the markets that we operate in.”
The reported net profit increased by 10% YoY to reach QAR 2.9 billion. Due to the company’s focused efforts on profitability, EBITDA growth rose by +4% YoY to QAR 7.7 billion along with a 1pp improvement in the EBITDA margin, reaching 44%.
In terms of capital expenditure (CapEx), there has been a 22% increase to QAR 1.9 billion, primarily due to increased investments in Iraq, Kuwait, Oman, Algeria, Tunisia, and Qatar.
Notably, the Group’s customer base reached 50.7 million customers during the first nine months of 2024.
“As we strategically evolve into a leading digital infrastructure provider serving the region, we will continue to prioritize efficiency and value creation, employing a flexible, dynamic and forward-thinking approach to power Ooredoo’s future growth,” concluded Al Thani.
Previous Results: Ooredoo Group’s Solid FY23 Performance: Record High Net Profit of QAR 3 Billion
Strategic Review
Ooredoo remains committed to its strategy, which is based on five fundamental pillars: delivering exceptional customer experience; empowering its people and nurturing talent; driving innovation as a smart telco; continuously evolving and fortifying its core operations; and maintaining a value-focused portfolio.
Ooredoo is positioning itself as the leading digital infrastructure provider in the region by transforming into a telecom and infrastructure holding company with a delayered multi-business structure, optimizing capital deployment and operational focus for increased asset returns in the telecommunications operation, tower, data center, subsea cable business, and fintech sectors.
TowerCo
In 2023, Ooredoo Group, Zain Group and TASC Towers Holding jointly announced the signing of definitive agreements to establish the largest tower company in the MENA region through a cash and share deal.
The primary focus remains on finalizing the transactions in each market, starting with Qatar, which is progressing well. These transactions are expected to be completed within 18 to 24 months from the announcement date.
Data Centers
In September 2024, Ooredoo announced the successful signing of a QAR 2 billion, 10-year financing deal with QNB, Doha Bank, and Masraf Al Rayan to accelerate data center expansion, representing the largest ever transaction in Qatar's tech industry.
Highlighting this feat, Aziz Aluthman Fakhroo, CEO of Ooredoo Group, expressed, “We advanced our journey toward becoming the MENA region's leading digital infrastructure provider, achieving a major milestone in our strategic vision by securing QAR 2 billion through a significant financing initiative to accelerate the expansion of our data center and AI business. We will strategically allocate these funds to carve out existing data center assets from our telecom operations, with a focus on boosting capacity and upgrading infrastructure to meet rising demand. As one of the fastest-growing data center markets globally, the MENA region holds significant untapped potential in AI, and we are committed to capitalizing on this opportunity.”
This builds on Ooredoo’s recent strategic initiatives to position itself at the forefront of AI advancement. In June 2024, Ooredoo entered a strategic collaboration with NVIDIA to drive digitalization and innovation in the region by leveraging NVIDIA’s advanced AI platform.
Fintech
Ooredoo Financial Technology International (OFTI), being a large player in Qatar with a transaction value of more than USD 6 billion per year and a 20% market share in international remittances, remains committed to advancing initiatives that promote financial inclusion.
In 2024, OFTI obtained a Payment Service Provider (PSP) license in Oman and the Maldives. The respective stakeholders are currently in the advanced discussion stage with the regulator in Tunisia and remain committed to pursuing license applications in Iraq and Kuwait.
Moreover, the company launched its brand, ‘walletii by Ooredoo,’ the mobile money app that provides a financial ecosystem for consumers and merchants to simplify their money management, allowing them to receive, send and spend both domestically and internationally.
Operating Companies 9M 2024 Highlights
Middle East
Ooredoo Qatar’s reported revenue decreased by 4% YoY to QAR 5,276 million, with the EBITDA expanding by 4% YoY to QAR 2,804 million on a reported basis. A solid EBITDA margin expansion of 4pp to 53% was supported through disciplined cost control.
Ooredoo Qatar increased its customer base by 1% YoY, reaching 3 million. As part of an ongoing focus to enhance customer experience and transform service delivery, Ooredoo Qatar partnered with Oracle in a multi-year agreement to drive digital innovation, operational excellence, and customer-centric solutions.
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Ooredoo Kuwait’s operation achieved solid revenue growth of 6% YoY, reaching QAR 2,328 million, driven by an increase in service revenue due to higher usage of data and digital services and equipment revenue. Its customer base remained flat, ending the period with 2.9 million customers.
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Ooredoo Oman’s mobile business remained challenged by intense competition within the Omani market. These challenging market dynamics contributed to a 2% YoY fall in revenue to QAR 1,786 million and a 6% decline in EBITDA to QAR 824 million, with 2.8 million customers recorded on its network during the end of this period.
The operation is undertaking several initiatives to enhance its competitive advantage in the market, including extending its 5G network and testing 5.5G, as well as conducting interactive marketing campaigns.
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In Iraq, Asiacell continued its strong momentum into Q3, bolstered by higher customer acquisitions and a strong performance in the data segment. The operation achieved double-digit revenue growth of 19% YoY to QAR 3,847 million. EBITDA expanded by 23% YoY to QAR 1,825 million with a 1pp margin improvement to 47%. It also added more customers (+9%) to its network YoY to reach a customer base of 18.6 million.
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Despite a challenging operating environment, Ooredoo Palestine demonstrated resilience and actively supported its customers ensuring their continued connectivity journey. The company provided free integrated bundles in the form of voice and data packages as a humanitarian aid to keep people connected. Moreover, the company successfully deployed the first ‘Cell on Wheel’, which aims to improve network efficiency and expanding coverage across the Gaza Strip.
North Africa
Ooredoo Algeria maintained its strong growth trajectory, reaping the benefits of strategic investments within a high-quality network. Revenue grew by 16% YoY to QAR 2,097 million, primarily driven by growth in data and digital revenue. It also expanded its customer base by 10% YoY to 14.5 million, supported by continued network densification, which is improving customer satisfaction and boosting commercial performance.
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Ooredoo Tunisia also delivered a solid performance by focusing on innovation, customer experience, and operational efficiency. Revenue grew by 4% YoY to QAR 1,142 million, underpinned mainly by strategic investments in the fixed business sector. On the other hand, its customer base decreased by 4% YoY, totaling 7 million customers.
Also Read: Tunisie Telecom, Orange, Ooredoo Compete for 5G Licences in Tunisia
Asia
Indosat Ooredoo Hutchison (IOH) also realized strong YoY growth across all key metrics: revenue increased by 12%, EBITDA grew by 15% and EBITDA margin expanded by 1pp to 48%, while Ooredoo Maldives delivered healthy growth with a revenue increase of 6% to QAR 387 million backed mainly by growth in the mobile segment.
During Q3, Ooredoo’s 5G nationwide coverage expanded. Its reach now extends to 60% of the country’s population, making it the most far-reaching 5G network in the Maldives.
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