Ooredoo (ORDS) Q2 2024 earnings summary

Executive summary

• Achieved 3% YoY revenue growth to QAR 11.8 billion and 14% YoY normalized net profit growth to QAR 1.9 billion for H1 2024, driven by strong operational performance in Iraq, Algeria, Kuwait, Tunisia, and Maldives.

• Completed disposal of Myanmar in May 2024, aligning with value-driven strategy and reducing FX risk; results include Myanmar until that date.

• Launched first standalone ESG report, enhancing transparency and aligning with GRI, SASB, and ISSB guidelines.

• Entered strategic AI partnership with NVIDIA to deliver AI infrastructure and digital transformation across MENA.

• Launched digital and fintech initiatives, including the 'walletii' app and MENA Digital Hub data centre company.

Financial highlights

• H1 2024 revenue grew 3% YoY to QAR 11.8 billion; Q2 revenue up 3% YoY to QAR 5.9 billion.

• Normalized EBITDA up 8% YoY; reported EBITDA up 6% to QAR 5.1 billion; margin improved to 43%.

• Net profit up 14% on normalized basis, 4% on reported basis to QAR 1.9 billion; Q2 net profit up 15% reported, 3% normalized.

• Free cash flow increased by 6% to QAR 4.1 billion; capex up 16% to QAR 1.0 billion in H1.

• Customer base (excl. Myanmar) up 4% YoY to 49.7 million; total including IOH at 150.6 million.

Outlook and guidance

• On track to meet FY 2024 guidance: flat revenue, EBITDA margin in low 40s, and capex of QAR 3.5 billion; H1 results ahead of targets.

• Strategic focus on digital infrastructure, AI, and fintech expansion in MENA.

• CapEx to ramp up in H2, targeting QAR 3.5 billion for the year; ~10% allocated to data centers.