Sheikh Mohammad Bin Abdullah Al Thani, Chairman of the Board of Directors commented: “2020 has been an unprecedented year in many ways, as the COVID-19 pandemic impacted nearly every aspect of our lives. During this period, we focused on the health and wellbeing of our employees and customers as well as supporting the communities in which we operate. Our efforts and service to the community was recognised by the Kuwait Red Crescent Society which honoured the voluntary role Ooredoo Kuwait employees performed to support society throughout the ongoing pandemic.
During the year we accelerated our digital transformation, focusing on expanding our digital customer acquisition channels and increasing the digital services available to our customers. This contributed to a significant growth in our digital user base and supported an increase in sales through the Ooredoo App in Kuwait. Our investments in technology and the customer experience, enabled us to maintain a healthy consolidated customer base of 24.8 million in 2020 compared to 26.1 million in 2019.
Our financial performance in 2020 was impacted by the economic slowdown resulting from the global pandemic, which deteriorated market conditions in some of our geographies. NMTC reported consolidated revenues of KWD 593 million in 2020 down from KWD 633 million in the previous year. Revenues improved sequentially from KWD 148 million in Q3 2020 to KWD 151 million in Q4 2020 indicating the start of a potential recovery. However, due to the uncertainty of the ongoing pandemic we remain cautiously optimistic and prudent in our approach.
The pressure from the top line impacted EBITDA and Net Profit attributable to NMTC, which was KWD 197 million and KWD 3 million, respectively.
In Kuwait, we continued to accelerate our digital strategy to create a seamless user experience and drive the growth of our digital customer base. In Tunisia, revenues increased by 4% to KWD 128 million despite challenging market conditions.
Our results in Algeria were impacted weak macroeconomic conditions, intense price competition and a 5% year on year depreciation of the Algerian Dinar.
In Palestine EBITDA increased 15% to KWD 11 million in 2020 compared to the previous year, driven by our ongoing efficiency and cost optimisation initiatives.
In Maldives’ our performance was impacted by the dampened tourism industry, which contributes to more than 40% of GDP, due to the COVID-19 pandemic.”
Review of Operations
The Group’s operational performance can be summarised as follows:
Ooredoo – Kuwait operations
Ooredoo Kuwait Revenues were KWD 209.8 million in 2020, compared to KWD 231.3 million in 2019 and EBITDA was KWD 52.0 million in 2020 compared to KWD 72.4 million in 2019. Ooredoo Kuwait offered special benefits for workers in the ministries and governmental organisations to support their efforts in fighting the pandemic as well as free 5GB data a day and unlimited local calls for all its customers, during the COVID-19 crisis. Ooredoo Kuwait also witnessed a multi-fold increase in its digital user base and digital sales supported by an easy to use Ooredoo App.
- Significant growth in Ooredoo Kuwait digital user base and supported an increase in sales through the My Ooredoo App
My Ooredoo app provides users a quick and easy way to check their balance, recharge their prepaid numbers, pay their post-paid bills, and more. In short, customers can manage all their lines at once through the App.
Customers can also customize their mobile plan minutes, internet and other features with “ANA” to suit their needs. Customers can also subscribe to any roaming packages within minutes through “ANA”.
COVID-19 made My Ooredoo App, digital services and virtual gatherings parts of people’s everyday lives, which encouraged them to never leave their homes. Today, millions of people depend on this tech to study and work from home, attend virtual meetings, and shop online. Thus, Ooredoo Kuwait constantly improves its products, services, and offerings to better serve the community.
- Investments in technology and the customer experience, enabled Ooredoo Kuwait to maintain a healthy consolidated customer base
- Ooredoo Kuwait continued to accelerate its digital strategy to create a seamless user experience and drive growth of its digital customer base
Advanced technologies create constant opportunities for innovation, growth, and value. These technologies allow companies to better engage with their customers, meet their ever-changing demands and desires, and offer customized customer experience. Ooredoo Kuwait never stopped investing in connected technologies with the aim of improving efficiency and leverage customer experiences.
- Ooredoo Kuwait launched its all-new “Shamel Pro” which was a big step that added to the company’s portfolio
Ooredoo Kuwait launched its all-new “Shamel Pro” which was first of its kind tariff plan offering benefits such unlimited 5G internet home and roam both.company gained more than 1,000 new “Shamel Pro” customers in the first two days of its launching.
- Ooredoo Kuwait has been persistent in developing and providing ProPing service over its 5G network
Ooredoo also launched ProPing, the first and leading gaming platform service in the country, which was previously provided by FASTtelco through fiber optics. Ooredoo Kuwait has been persistent in developing and providing ProPing service over its 5G network, as the service has become available with guarantees, allowing customers to directly communicate with the largest global gaming systems and websites.
- Ooredoo Kuwait honored by several entities and won many prestigious awards including; the “Best Loyalty and Rewards Program” award for its “Nojoom Rewards Program”
Ooredoo Kuwait has been honored by several entities and won many prestigious awards including; the “Best Loyalty and Rewards Program” award for its “Nojoom Rewards Program” at the 14th edition of Telecom Review Leaders’ Summit, the ICT industry’s biggest and first hybrid event in the Middle East, happened in November 2020. The company has also won the prestigious recognition as the ‘Best Application’ (Mobile/Tablet) at the MENA Digital Awards 2019 for its innovative MyOoredoo Application. More and above, Ooredoo Kuwait was also named the winner of Bronze Stevie Awards in the categories ‘Most Valuable Corporate Response’ and ‘Business & Government’.
- Ooredoo Kuwait witnessed tremendous increase in digital user numbers and digital sales revenues
Lastly, the company witnessed tremendous increase in digital user numbers and digital revenues by 90%.
Ooredoo - Tunisia
Ooredoo’s customer base in Tunisia decreased to 8.1 million customers in 2020. Revenues increased by 4% to reach KWD 127.7 million in 2020 compared to KWD 123.1 million in 2019. EBITDA decreased to KWD 54.7 million in 2020 compared to KWD 56.9 million in 2019due to increased billing and collection cost reflecting a slowing economy
Ooredoo – Algeria
Customer base in Algeria decreased by 1% to 12.5 million in 2020 compared to 12.6 million in 2019. Business in Algeria was negatively impacted by the devaluation of the Algerian Dinar, a weak economic environment and intense price competition. Consequently, revenues decreased to KWD 190.0 million in 2020, compared to KWD 208.7 million in 2019. EBITDA was KWD 62.6 million in 2020, down from KWD 72.4 million in 2019. Algerian Dinar depreciated by 5% year on year.
Ooredoo - Palestine
Customer base in Palestine stood at 1.3 million customers in 2020. Revenue increased by 3% to KWD 31.2 million in 2020, compared to KWD 30.2 million in 2019. EBITDA was strong, increasing 15% to KWD 10.5 million in 2020, compared to KWD 9.0 million in 2019, driven by operational efficiencies across the business.
Ooredoo - Maldives
Ooredoo Maldives reported a 15% decrease in revenues to KWD34.3 million in 2020, compared to KWD 40.2 million in 2019. EBITDA was KWD 17.0 million in 2020 compared to KWD 22.1 million in 2019. Ooredoo Maldives now serves a total of 349k customers.
For more information, please visit www.ooredoo.com.kw
© Press Release 2021