Ooredoo (ORDS) Q4 2024 earnings summary

Executive summary

• Achieved record normalized net profit of QAR 3.7 billion (up 12%) and reported net profit of QAR 3.4 billion (up 14%), with revenue up 2% to QAR 23.6 billion and EBITDA up 3% to QAR 10 billion, marking a third consecutive year of growth.

• Exceeded revenue guidance, with EBITDA margin rising to 42.5% and capex in line with targets.

• Completed sale of Myanmar operations, carved out data centers in key markets, and launched new fintech initiatives including the Walletii app and PSP licenses in Oman, Maldives, and Tunisia.

• Board proposed a cash dividend of QAR 0.65 per share, up 18%, with a payout ratio of 58% of normalized earnings and a 5.04% yield.

• Progressed strategic transformation into a leading digital infrastructure provider in the MENA region, with Ooredoo being the only major Gulf telco to see a share price increase in 2024.

Financial highlights

• Revenue rose 2% year-over-year to QAR 23.6 billion, driven by strong performances in Iraq, Algeria, Kuwait, Tunisia, and Maldives.

• EBITDA increased 3% to QAR 10 billion, with margin up one percentage point to 42.5%; normalized EBITDA up 4%.

• Reported net profit reached QAR 3.4 billion, up 14% year-over-year; normalized net profit up 12% to QAR 3.7 billion.

• CapEx increased by 13% to QAR 3.2 billion, mainly from higher investments in Iraq, Oman, Tunisia, and Kuwait.

• Free cash flow reached QAR 6.8 billion, up 1% on a normalized basis.

Outlook and guidance

• 2025 revenue expected to grow 2%-3%, with EBITDA margin guidance in the low 40s and CapEx projected at QAR 4.5-5 billion, mainly for data centers and subsea cables.

• Strategic focus on expanding data center capacity to over 120MW with USD 1 billion investment, subsea cable systems, and leveraging partnerships.

• Scaling fintech business, pursuing further PSP licenses in Iraq and Kuwait in 2025, and finalizing tower asset transactions by 2026.

• Continued transformation to a telecom and infrastructure holding company with a delayered multi-business structure.

• Focus on operational and financial momentum, targeted investments, and AI-driven efficiencies.