Cautious Strategy and Transformation Program Drive Ooredoo Group’s “Strong” Performance in 2021: Chairman
* At the company’s annual general meeting on Tuesday, shareholders approved the board’s recommendation to distribute a cash dividend of QAR 0.30 per share
* At AGM, shareholders approve Board recommendation to distribute cash dividend of QAR 0.30 per share
Ooredoo Chairman HE Sheikh Faisal bin Thani al-Thani attributed the group’s strong performance in 2021 to its “cautious strategy and ambitious transformation agenda”.
He was addressing shareholders at Ooredoo’s annual general meeting yesterday.
Sheikh Faisal also cited several strategic milestones in 2021 as contributors to the Group ending the year in a stable financial position.
“Our solid performance during the year confirms that our business strategy is sound, effective and capable of distinguishing our performance in competitive markets. We have focused on driving group-wide initiatives to enable us to future-proof our business, introducing attractive new services in the business-to-consumer and business-to-business sectors,” he said. he declares.
During the AGM, the shareholders discussed and approved the report on corporate governance and the financial statements of the company, after the confirmation of the results for the year 2021.
Shareholders approved the board’s recommendation to distribute a cash dividend of QR 0.30 per share.
In 2021, Ooredoo’s revenue grew 4% year-over-year to QR30 billion, with strong performance in Ooredoo’s home market of Qatar, as well as in Indonesia and Tunisia. Excluding currency effects, sales increased by 7%.
Driven by growth in Indonesia, Kuwait and Algeria, the group’s EBITDA was QR 13 billion and the company improved its EBITDA margin to 44% from 42%.
The company’s net profit increased by 61% excluding foreign exchange impact and a one-time negative impairment in Myanmar which was partially offset by a gain from the sale and leaseback transaction of the Indonesian tower.
The consolidated customer base of the Ooredoo group exceeded 121 million with strong performances, particularly in Indonesia, Oman, Algeria and Iraq.
Ooredoo Group maintains “healthy” cash reserves and liquidity levels. Free cash flow – the anchor metric for its group-wide transformation program – rose 30% to QR 8.2 billion.
Operational highlights included the confirmation of the merger of Indosat Ooredoo with CK Hutchison, creating Indosat Ooredoo Hutchison; a stronger No. 2 operator in this important market.
By consolidating the two networks, Ooredoo intends to achieve higher revenues and generate significant operational and financial synergies.
The Group also secured a sale-leaseback of Indosat Ooredoo’s tower assets in 2021 – one of the largest such transactions in Asia, with a valuation of $750 million.
Institutional confidence in Ooredoo’s strategy and performance was demonstrated by the success of its $1 billion bond issue in April 2021.
This was Ooredoo’s first issue in five years and the market reaction has been overwhelmingly positive.
Further confirmation of confidence in Ooredoo came in the strong Investment Grade ratings the Group has maintained with the major rating agencies on their long-term outlook on Ooredoo: Standard & Poor’s: A-; Moody’s: A2; and Fitch: A-.