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.


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.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story