Ooredoo feels Covid-19 effects in Q2 - Mobile World Live

Ooredoo feels Covid-19 effects in Q2

29 JUL 2020

Qatar-headquartered Ooredoo posted a sharp revenue decline in Q2, hit by a reduction in handset sales and its roaming business which it put down to the effects of the Covid-19 (coronavirus) pandemic.

In an earnings statement, Ooredoo said revenue fell 7 per cent year-on-year to QAR6.8 billion ($1.9 billion) due to the outbreak and macroeconomic weakness in some of its markets.

It said this was offset by bright performances in Indonesia, Tunisia and Myanmar.

Net profit increased 3 per cent to QAR432 million, as it benefitted from a more favourable foreign exchange environment compared to Q2 2019.

Ooredoo chairman Sheikh Faisal Bin Thani Al Thani noted the challenges of the pandemic, but paid tribute to the company’s “early investments” in digital transformation and technology, which he said helped it to respond to the new operating environment.

“To accommodate the steep growth in data traffic during the pandemic, we are continuously optimising data traffic flows across our fixed and mobile networks,” he said.

Al Thani added the company was conducting 5G trials in Indonesia, Myanmar and the Maldives, with mooted launches adding to its existing next-generation operations in three countries, the latest being Oman.

Ooredoo said data revenue accounted for 50 per cent of its total.

Going forward, the company said it had a healthy cash reserve and liquidity levels to able to absorb the impact of Covid-19 for the rest of the year.

The company did not break out quarterly figures for individual markets.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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