Doha-based telecom company Ooredoo has announced its financial results for the nine-month period ending September 30, 2024. During this period, the company reported a revenue increase of 2 percent, reaching QAR17.7 billion ($4.85 billion). EBITDA rose by 4 percent to QAR7.7 billion ($2.11 billion), resulting in an EBITDA margin of 44 percent, which is an improvement of one percentage point.
According to a statement, the normalized net profit reached QAR2.9 billion, marking a significant increase of 15 percent. Ooredoo’s capital expenditure amounted to QAR1.9 billion ($521.42 million), and the customer base grew to 149.4 million, not including Myanmar. The company also secured a QAR2 billion, 10-year facility to support the expansion of its data center business. After the reporting period, Ooredoo issued a USD 500 million, 10-year bond at a record-tight spread to manage upcoming maturities.
Commenting on the results, HE Sheikh Faisal Bin Thani Al Thani, chairman of Ooredoo, highlighted that the Ooredoo Group achieved revenue growth of 2 percent, reaching QAR17.7 billion, along with a healthy 15 percent increase in normalized net profit during the first nine months of 2024. He noted that the Group continues to benefit from initiatives implemented in recent years aimed at transforming the operational model, with a focus on high-value assets and achieving quality growth across its markets.
Read more: Qatar’s Ooredoo Group lands $551.9 million financing deal to propel data center expansion
Funding and future growth initiatives
Al Thani also mentioned that Ooredoo secured funding through bank financing and a long-term bond issuance, emphasizing the confidence expressed by banking partners and the market in Ooredoo as a reliable, secure, and future-proof investment option. As the company strategically evolves into a leading digital infrastructure provider for the region, he indicated that Ooredoo will prioritize efficiency and value creation, adopting a flexible, dynamic, and forward-thinking approach to drive future growth.
Operational highlights and market performance
Additionally, Aziz Aluthman Fakhroo, CEO of Ooredoo Group, remarked that the Group delivered a robust performance during the third quarter of 2024, demonstrating growth across most key financial metrics.
For the first nine months of 2024, revenue increased by 2 percent to QAR17.7 billion. Our focus on operational efficiencies enhanced the Group’s profitability, leading to a 4 percent rise in EBITDA to QAR7.7 billion, resulting in an EBITDA margin of 44 percent, which represents a year-on-year improvement of 1 percentage point.
On a normalized basis, net profit surged by an impressive 15 percent to QAR2.9 billion, driven by robust operational performance.
The Group’s strong results were further bolstered by solid operational outcomes in Iraq, Algeria, Qatar, Tunisia, and the Maldives.
Successful bond issuance
Earlier in October, Ooredoo announced the successful completion of its $500 million issuance of senior unsecured notes. The notes were priced at an annual coupon rate of 4.625 percent and mature in October 2034. The transaction achieved a spread of 88 basis points over 10-year U.S. Treasuries, marking the tightest spread ever achieved in Ooredoo’s history, as well as one of the lowest for an emerging market corporate issuer and the lowest for a global telecommunications company on a 10-year bond since 2020.
Strong demand
The issuance was oversubscribed by 3.6 times, attracting a diverse group of investors from the U.S., the United Kingdom, Europe, Asia and the MENA region. Net proceeds from the sale of the notes will be used for Ooredoo’s general corporate purposes, including refinancing of its existing indebtedness.
The notes were issued by its wholly owned subsidiary, Ooredoo International Finance Limited, under the existing $5 billion global medium-term notes programme on the Irish Stock Exchange. The notes are rated A2 by Moody’s and A by S&P.
Landmark financing deal
The issuance was arranged and offered through a syndicate of joint global coordinators and joint bookrunners comprised of Citigroup Global Markets Limited, J.P. Morgan Securities plc, HSBC Bank plc and joint bookrunners comprising of Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd. and QNB Capital LLC.
Ooredoo Group last month announced a landmark $550 million financing deal to accelerate the growth of its data centre business and unlock new opportunities in AI and cloud computing. This follows the establishment of the MENA digital hub earlier this year, Ooredoo’s new, carrier-neutral data center company, which is set to transform the region’s digital infrastructure.
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