Ooredoo (ORDS) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 2% to QAR 23.2bn; reported EBITDA grew 4% to QAR 9.7bn and reported net profit increased 28% to a record QAR 3.0bn.

• Normalized net profit reached QAR 3.279bn, up 16%; strategic priorities advanced through tower monetization, data-center carve-outs and fintech development.

Financial highlights

• FY23 normalized EBITDA rose 5% to QAR 9.6bn; reported EBITDA margin expanded 1pp to 42%, with normalized margin also up 1pp.

• FY23 free cash flow rose 4% to QAR 6.9bn; normalized FCF increased 6% to QAR 6.8bn.

• Q4 revenue was QAR 5,923m, up 1%; EBITDA was QAR 2,326m, up 4%.

• Q4 reported net profit was QAR 352m, up 27%; normalized net profit was QAR 745m, up 8%.

Outlook and guidance

• FY24 guidance: revenue flat YoY, EBITDA margin in the low-40% range and capex of ~QAR 3.5bn; FY23 guidance targets were met.

• Medium- to long-term data-center plan targets 120MW capacity through USD 1bn investment; Kuwait and Iraq carve-outs were expected in H1 2024.

• Strategic priorities include operational efficiency, cash generation and becoming a leading regional digital infrastructure provider; Oman fintech product was in testing pending final approval.