Ooredoo's profit drops 43%

Telco reported a net profit of 501.2 million riyals in the three months to March 31
Dr. Nasser Marafih, group CEO at Ooredoo.
Dr. Nasser Marafih, group CEO at Ooredoo.

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Ooredoo has reported a 43% drop in its first-quarter profit. The company states thee foreign exchange losses and the unsustainable environment in Iraq.

The company reported a net profit of 501.2 million riyals ($133.7 million) in the three months to March 31, down from 886.6 million riyals a year earlier.

First-quarter revenue was 8.04 billion riyals, down from 8.10 billion riyals a year earlier despite the company increasing its subscriber base by 14% to 111 million over the same period.

Asiacell's quarterly net profit was 49 million riyals, down 84% year-on-year despite January's launch of 3G services. Ooredoo reported that Asiacell's network was suspended in Mosul, Salahaldin, Anbar and Tikrit, as they were areas held by IS.

Indosat made a net loss of 121 million riyals in the first quarter versus a profit of 261 million riyals a year earlier.

Ooredoo Kuwait, which is 92%owned by Ooredoo and with operations in Algeria, Tunisia, the Maldives and the Palestinian Territories, reported an 89% drop in first-quarter profit.

"Results have been strong in our home market, Qatar, and in Oman. We are facing challenges in some of our markets including high levels of competition, adverse currency movements and the security situation in Iraq," said Dr. Nasser Marafih, chief executive at Ooredoo.

The operator had stated declining profits in four of the previous six quarters.

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