Enriching People's Digital Lives
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Enriching people’s digital lives Annual Report 2017 Ooredoo Annual Report 2017 Ooredoo In the Name of Allah Most Gracious Most Merciful His Highness Sheikh Tamim Bin Hamad Al Thani Emir of the State of Qatar 2 Our Vision Enriching people’s digital lives Contents 4 Chairman’s Message 24 Our Businesses 70 Consolidated Financial 26 Ooredoo Qatar Statements 8 Group CEO’s Message 30 Indosat Ooredoo Indonesia 72 Independent Auditor’s Report 10 Our Board of Directors 32 Ooredoo Kuwait 76 Consolidated Statement 34 Ooredoo Oman of Profit or Loss 12 Operational and 36 Asiacell Iraq 77 Consolidated Statement Financial Highlights 38 Ooredoo Algeria of Comprehensive Income 40 Ooredoo Tunisia 78 Consolidated Statement 14 Our Reach of Financial Position 42 Ooredoo Myanmar 80 Consolidated Statement 16 Key Moments 44 Wataniya Mobile Palestine of Changes in Equity 46 Ooredoo Maldives 20 Our Strategy 82 Consolidated Statement 48 Our Social Responsibility of Cash Flows 22 2017 Awards and 84 Notes to the Consolidated Industry Recognition 54 Corporate Governance Report Financial Statements 66 Financial Review Ooredoo Annual Report 2017 3 4 Chairman’s Message Growing market leadership Group Revenue Group EBITDA Amount in QR millions 1% Amount in QR millions 3% 32,735 13,783 Net Profit to Ooredoo Total Customers Amount in QR millions –10% Millions 18% 1,967 164 Dear Shareholders, Challenging times bring out the best in great organisations: they encourage faster decision-making and ensure that executives focus on what is truly important. For Ooredoo, 2017 certainly contained some We surpassed 160 million customers, As a result of these efforts, we begin challenges, but it was also a year in which delivered strong data revenue growth, 2018 more resolute than ever before and we achieved some of our most important and enhanced our business-to-business determined to continue to build our data successes. With a robust and clear-minded offering. Our operations are now experience leadership. Ooredoo has the strategy in place, we have been able to working as digital enablers, delivering network, the experience and the people in navigate through turbulent conditions innovative new digital services through place to continue to diversify our business and deliver a strong set of results. Information Technology partnerships, and lead through network technology. including successful trials of optical We have long stressed that one of communications technology in Algeria As you will see in this year’s Annual Report, Ooredoo’s key strengths lies in our and a Group-wide network transformation these strengths position us to deliver balanced portfolio of operations, which agreement signed at Mobile World sustainable growth and development. sees the company hold leadership Congress in Barcelona. positions in both core and emerging Delivering Strong Financial Results markets. In 2017, whenever our operations We have also streamlined our operations Ooredoo delivered another year of good faced situations that required a new and concentrated on the areas where results in 2017. approach, our teams worked together we make the greatest impact and deliver very closely to overcome the challenges. the strongest growth. We have continued FY 2017 Group Revenue increased to QR to achieve significant savings in 2017, 32.7 billion, driven by strong contributions Importantly, this period has encouraged particularly through our focus on centralised from Indonesia, Iraq, Kuwait, Maldives us to concentrate on what our company purchasing and infrastructure-sharing. and Oman. Excluding Foreign Exchange does better than almost anyone else: translation impact, revenues increased enrich people’s digital lives. In addition, our efforts to digitise our by 2% compared to the reported 1% businesses are delivering strong returns, revenue increase. By focusing on this aspect of our business, better utilising resources and empowering we have recorded some important customers to enjoy more self-service and milestones over the course of the year. self-care through digital channels. Ooredoo Annual Report 2017 5 “ Through each of our bold steps overseas, Ooredoo has developed significant experience. If we had stayed at home, serving two million people, would we have gained such in-depth expertise and forged such strong connections across global markets? Ooredoo’s – and Qatar’s – willingness to push outside of its comfort zones has been a key ingredient in our success.” H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al Thani speaking at Georgetown University in Qatar on 28 November 2017 Our customer base showed further Ooredoo saw data revenue increasing to One of our proudest moments of the strength, increasing 18% to 164 million, 46% of Group revenue in 2017, driven by year was the launch of Wataniya Mobile’s driven by customer acquisition activities significant data growth from consumer operations in Gaza, Palestine, with the in Indonesia, Iraq, Oman, Algeria, Tunisia, and enterprise customers. Revenue from largest investment in telecommunications Maldives and Palestine. data contributed QR 15.3 billion in 2017, in Gaza in nearly two decades. up 16% from QR 13.1 billion in 2016. Group EBITDA increased 3% to QR 13.8 We also expanded access to 4G services, billion with a corresponding increase Group B2B revenue stood at QR 5.5 billion with Ooredoo Algeria launching 4G in EBITDA margin to 42%, indicating in 2017, reflecting Ooredoo’s ongoing services in 28 new provinces, and Ooredoo a further improvement in operational investment to support the growth of Myanmar bringing 4G services to more performance from FY 2016 (41%). businesses, SMEs and governmental clients. than 15 million people in 200 townships. Excluding Foreign Exchange translation impact, Group EBITDA increased by 4% Enhancing global leadership in data Looking to next-generation network year-on-year. and innovation services, Ooredoo Qatar became one of the world’s first companies to offer In each of our markets, Ooredoo is working New government levies in Oman and “5G Speed Experiences,” with download to be the leader in data and innovation one-off provision reversals in 2016 led to speeds of up to 1 Gbps demonstrated services, enabling people to enjoy a decrease in Group Net Profit to Ooredoo during Qatar National Day in December. connections with friends and family, shareholders by 10% to QR 2.0 billion. enhance their digital and real-life Excluding these, the normalised net profit We also received global recognition journeys, and share their favourite videos attributable to Ooredoo shareholders for enabling Qatar to have the fastest and music with their personal networks. increased by 1%. average broadband connection speeds in the Middle East and North Africa, These investments delivered results in terms and seventh-fastest in the world, and for of both cutting-edge mobile technology leveraging the power of broadband for and mass market service, enabling more sustainable development. people to access the benefits of data. 6 Chairman’s Message continued New customers 25.5million Enhancing global leadership In each of our markets, Ooredoo is working to be the leader in data and innovation services. Ooredoo Annual Report 2017 7 At Group level, we are seeing strong Mobile data also supports the expansion We also de-listed from the London Stock results from our partnerships with of education. In Iraq, Asiacell’s partnership Exchange, as investors can now easily Secucloud, to deliver cloud-based device with the Wikipedia Zero project offered trade Ooredoo securities on the Qatar security, and with iPass, on global Wi-Fi free access to Wikipedia to 12 million Stock Exchange. services, for customers across our region. mobile customers, opening a world of information and educational opportunities. Dividends Our operating companies continued In line with our stated strategy, the Board to lead in-market innovation. Ooredoo continued to support the GSMA’s of Directors is pleased to recommend Mobile for Development programme, to the General Assembly the distribution Ooredoo Kuwait partnered on the first which recognised the success of Ooredoo of a cash dividend of 35% of the nominal Voice Over LTE (VoLTE) inter-connection Myanmar’s Site Pyo app to improve share value (QR 3.5 per share). in the Middle East and North Africa. farmers’ lives by providing information Ooredoo Maldives launched a new digital that can improve crop yields. engagement platform: Ooredoo Next. The Board and Governance Ooredoo Oman’s Fast Home Broadband In Indonesia, Indosat Ooredoo saw The Ooredoo Board has been now covers a record high of more than 60 strong momentum on innovative social fundamental in driving Ooredoo’s global Wilayat (states), enabling more customers development initiatives, such as the leadership in innovation and data than ever to enjoy the internet. Smart City platform Kota Digital, and the experience. I would like to thank the INSPERA initiative that aims to empower Board Members for their contribution Collectively, these innovations ensure underprivileged women to turn them to the company’s success. that Ooredoo is able to deliver incredible into entrepreneurs. internet experiences across our markets, Under their guidance, we will leverage our extensive global experience to extend our and build Ooredoo’s internal resources Supporting and developing efforts to enable all our customers to enjoy of knowledge and expertise. sustainable leadership the full benefits of access to the internet. As a community-focused international Investing in and giving back to