Q2 2026 Ooredoo QPSC Earnings Call Transcript
Key Points
- Ooredoo QPSC (DSMD:ORDS) delivered solid H1 2026 results with group revenue up nearly 5% to QAR12.5 billion and EBITDA up 7%, with margin expanding 1.2 percentage points to 44.4%.
- Normalized net profit increased around 4% to almost QAR2 billion, demonstrating the resilience of the underlying business despite a one-off legal provision in Algeria.
- Strong cash generation with free cash flow up almost 8% to QAR3.9 billion, supported by disciplined capital allocation and a robust balance sheet with net debt to EBITDA at a low 0.6 times.
- Syntys, the data center platform, is scaling rapidly with 7.5 MW under construction and 10.4 MW of fully contracted new builds, positioning the company to potentially reach its 2030 capacity target two years ahead of plan.
- Fintech platform continues to scale, processing almost QAR6 billion in international remittances and serving over 500,000 users, with expansion plans advancing in Tunisia and Iraq.
- Strong growth in key markets like Algeria (revenue +16%), Tunisia (+14%), and Palestine (+18%), offsetting challenges in other regions and showcasing the benefits of a diversified footprint.
- Customer base grew over 4% year-on-year to 54 million, driven by solid additions in Algeria, Iraq, and Tunisia, indicating sustained demand for connectivity services.
- Reported net profit declined nearly 5% due to a one-off legal provision in Algeria related to a long-standing court case on foreign currency treatment for roaming.
- Device-related revenues were negatively impacted by regional logistic constraints and the ongoing conflict, particularly affecting markets like Kuwait and Qatar, and weighing on top-line growth.
- Kuwait's customer base declined over 3% due to limited device availability and the regional conflict weighing on gross additions, while Oman's customer base also fell around 6% amid competitive pressure.
- Iraq's revenue growth slowed to just over 3%, below management's expectations for high single-digit growth, due to disruptions in government salary payments and the challenging regional context.
- EBITDA margin in Algeria moderated to around 44% due to incremental costs related to the 5G frequency fee, despite strong revenue growth.
- The company faces ongoing competitive pressure in Oman, leading to a decline in mobile customers, although fixed-line growth continues.
- Management noted that the regional backdrop remains dynamic and hard to forecast, creating uncertainty for the second half of the year, particularly in directly impacted markets like Iraq and Maldives.
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Good afternoon, everyone. Welcome to Ooredoo Group's financial results call for the first half of 2026. My name is Ali Serdar, Head of Group Treasury and Investor Relations. Thank you for your attendance today.
I'm joined by our Group CEO, Aziz Aluthman Fakhroo, who will start with highlights of the first half, strategic progress, and then group results. After that, our Deputy Group CFO, Fadi Abdellatif, will walk you through the performance of our operations.
We will keep the presentation short so we can leave enough time for your questions. (Event Instructions) The presentation is available on our website and on this platform. Please note that this session is being recorded and transcribed, and finally, please refer to the disclaimer on slide 2.
With that, I will now hand over to Aziz.
Good
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