Middle Eastern operator Ooredoo pointed to sturdy growth in Indonesia, Tunisia and Myanmar as drivers of a marginal increase in revenue in Q1, but warned of tougher times ahead as the effects of the Covid-19 (coronavirus) pandemic take hold.
Qatar-headquartered Ooredoo stated revenue rose 1 per cent year-on-year to QAR7.3 billion ($2 billion), driven by 16 per cent growth in Tunisia (QAR382 million) and a 7 per cent increase in Indonesia (QAR1.7 billion), with both markets benefitting from increased data traffic.
In Myanmar, 4G investments drove a 43 per cent increase in its customer base to 15.6 million, with revenue up 9 per cent to QAR284 million.
Qatar was the highest revenue generator, albeit flat, contributing QAR1.8 billion.
Net profit slipped 8 per cent to QAR387 million, as a reduction in EBITDA offset favourable forex movements.
Covid concerns
The company noted its Q1 performance was hit partially by the pandemic, along with a reduction in handset sales and macroeconomic weakness in some of its markets.
Looking ahead, Ooredoo said as Covid-19 lockdowns continue, it “expects economic weakness in most markets”, but noted it has a healthy cash reserve to absorb the impact for the rest of 2020.
Commenting on the results, chairman Sheikh Faisal Bin Thani Al Thani added: “The world is going through an unprecedented challenge as we all come together to tackle the Covid-19 pandemic. While the telecom sector is defensive and more resilient than others, we do expect to see some negative impact on our operations, similar to other global telecom operators.”
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