Let me introduce my colleagues. You will be familiar with Aziz Aluthman Fakhroo, Managing Director of the Ooredoo Group, Sheikh Mohammed Al-Thani, who is the Deputy Group CEO and CEO of Ooredoo Qatar, and we're also joined by René Werner, who is our Chief Strategy Officer, and by my colleague, Sara Al Sayed, from the Investor Relations team. All the bios are in the investor deck as well. As always, we will start with a summary of the results, the highlights by Aziz. That will be followed by the OpCo overview by Sheikh Mohammed and Abdulla Al Zaman, our Group CFO. We keep the presentation brief on purpose to allow sufficient time for your questions, and the presentation is available on our website at ooredoo.com as well as on this webcast. Please do note the disclaimer on slide number two. To begin, I hand over to Aziz. Good afternoon, everyone. Thank you for joining Ooredoo Group's investor call. We had a good start into 2021. Happy to report growth for the first half of the year with revenues of QAR 14.5 billion. This is up 3% compared to the same period last year. Excluding FX impact, that was a 5% increase year-on-year. Similarly, our EBITDA increased by 7% to QAR 6.4 billion for the same period. Net profit attributable to shareholder turned negative for the first time in the history of the group due to the impairment of about QAR 2.3 billion from Ooredoo Myanmar. This was partially offset by a QAR 1 billion profit from the sale and lease back of Indosat Ooredoo tower assets in Indonesia. Net profit increased by 52% excluding the one-offs and FX impact. We continue to focus on providing reliable connectivity and innovative products to our customers. Our robust operational and financial performance reaffirmed confidence in the business and resulted in an increase of our customer base by 1%. I'm also glad to report that in May, regulators approved Indosat Ooredoo sales and lease back agreements with Edge Point Indonesia for the sale of more than 4,200 towers. This was a landmark transaction valued at $750 million, making it one of the largest deals of its kind in Asia. Next slide, please. As previously mentioned, we had a healthy revenue increase of 3% to QAR 14.5 billion for the first half of the year. This was mainly driven by growth in Indonesia, Qatar, and Tunisia, and partially offset by Iraq, Oman, and Myanmar. The increase in revenue, combined with our intense focus on cost optimization strategy using technology and digitalization, led to an increase in EBITDA by 7% for the year, which excluding FX impacts, stood at 10% increase for the same period last year. Growth here was driven by Indonesia, Qatar, Kuwait, Tunisia, and Algeria, and partially offset by decline in Iraq, Oman, and Myanmar. To put it into perspective, our EBITDA margin for the first half of 2021 is at 44% compared to last year's first half of 42%. Moving to the next slide, please. As mentioned, our net profit turned negative for the first half of this year. This was mainly driven by an impairment in Ooredoo Myanmar and was partially offset by a profit of $1 billion from the sale and lease back of Indosat Ooredoo's tower assets. If we exclude these one-offs and FX impact, our net profit increased by 52%. Next slide, please. On this slide, you will see our CapEx and free cash flows. Capital expenditures decreased by 6% at QAR 2 billion for the first half of the year compared to the same period last year. This is in line with our guidance for the full year, as we remain focused on optimizing CapEx by taking advantage of the scale of Ooredoo Group and our global sourcing strategy. We reported a healthy free cash flow at QAR 2.7 billion compared to QAR 2.2 billion for the same period last year. This was due mainly to improved EBITDA and reduced CapEx. Next slide. Our customer base increased by 1% to 118 million subscribers due to growth in Indonesia, Oman, and Iraq, offsetting the decline in other markets. Yet again, a testament to our reliable connectivity and our ever-expanding innovative product portfolio. Slide nine, please. First half of 2021 saw a positive trend of the group's net debt reduction, with a total net debt to EBITDA ratio at 1.6x, which is towards the lower end of our board guidance between 1.5x to 2.5x. Group debt remains mainly at the corporate level, largely in Qatar, followed by Indonesia, and then smaller percentage allocated to other OpCos. As a reminder, debt at the OpCo level is debt primarily in local currency. Slide 10, please. Once again, I'm very happy of our performance with revenue and EBITDA both exceeding our guidance range for the year. CapEx was seasonably low, which was expected. As the year progressed, we expect CapEx to fall in within our guided range of $5 billion-$6 billion. However, this will be subject to COVID-19 developments in our key markets. I'll now hand over the call to Sheikh Mohammed, which will provide more detailed overview on Qatar, Indonesia, and Iraq. Thank you very much. Thank you, Aziz. We're proud to report that in our home market of Qatar, we maintained our position as the leading operator in terms of both market share and infrastructure. The Ooredoo Fiber rollout program is also progressing very well. Now we have over 485 homes connected across the country. Furthermore, we continue to see growth with year-on-year revenue increase of 5% to QAR 3.7 billion, driven by growth in B2B, postpaid services, mobile financial services, OTT, and higher sales as well of devices. Our EBITDA grew by 2%. We reported a healthy EBITDA margin of 53%. Another big achievement within Ooredoo Qatar is that we attained Dell Titanium status and won Emerging Partner of the Year and Collaboration Partner of the Year awards from Cisco. We also represented Qatar as part of delegation at St. Petersburg International Economic Forum, SPIEF, in June, and we are optimistic about potential business opportunities this will bring. Let's move to Indosat. Indosat Ooredoo reported a steady performance for the first half of the year with a 14% increase in revenue, outperforming the market. Due to ongoing operational efficiencies and strong revenue growth, EBITDA was up by 24% and EBITDA margin was up by 5 percentage points. Indosat Ooredoo focused on enhancing customer experience with a 5% year-on-year growth in customer base to 60 million. Indosat Ooredoo brand reflected the highest growth in NPS, net promoter scores, customer satisfaction, and brand equity index scores year-on-year amongst all operators in Indonesia. CapEx rollout has paid a plan despite the surge in COVID cases. The company continues its 4G network investment and recently launched 5G commercially. Intensive discussion with Hutchison about a combination of our Indonesian assets are continuing, and we have extended the deadline and MoU until the August 16th. Finally, as Aziz mentioned, we are happy to report that regulators approved Indosat Ooredoo sale and lease back agreement with EdgePoint Indonesia for the sale of Indosat's 4,200 tower assets, marking a major milestone for the company and its transaction history. If we move to the next slide to Iraq. In Iraq, the Iraq economy was further impacted also by recent protests following the 17% devaluation of the Iraqi dinar and the continuing pressure associated with the effects of COVID-19. The devaluation of the dinar and the impact of COVID subsequently resulted in a revenue decrease of 12%. While Asiacell EBITDA decreased 6% in QAR terms with the ongoing digital transformation program and new optimized data solution, EBITDA margin improved to 46%. In local currency terms, Asiacell grew its revenue by 7% as the country gradually came out of a COVID-19 restrictions and lockdown, while EBITDA grew by 13%. Despite these ongoing challenges, Asiacell customer base grew by 9% to 43.5 million, demonstrating strong customer confidence in the business. The company also launched digital partnership with IBM, Google, and Huawei and launched its e-commerce platform. Asiacell was recipient of two awards, Leading Mobile Telecommunication Provider in Iraq and Best CSR in Iraq as well. I will now hand over to our Group Chief Financial Officer, Abdulla Al Zaman, to take you through the rest of the operations. Abdulla, over to you. Thank you, Sheikh Mohammed. Good afternoon, everyone, and thank you for being here today on the meeting. I will be covering Oman. Oman performance was further impacted by the pandemic, contributed to soften microeconomic environment. The company reported 5% year-on-year decline in revenue due to lower consumer mobile prepaid, which partially been offset by the postpaid revenue. When it comes to the EBITDA, decreased by 10% to the level of QAR 618 million, as you can see it in the slide. EBITDA margin was also 52% down from 54% compared to the first half of 2020. 5G is performing very well in Oman. As the company 5G revenue double sequentially from quarter one 2021, resulting in customer base increase to 8%, to 2.8 million for the first half of the year. That was also implemented as of April 16, and we have adjusted our price accordingly. Next slide, please. When it comes to Kuwait, almost when it comes to the pandemic, contribute to put a pressure on Ooredoo Kuwait also performance. The company reported a slight increase of revenue, approximately QAR 1.2 billion, and increase in EBITDA of 13% due to general cost saving initiative for the first half of the year. EBITDA margin improved to 29%. Ooredoo Kuwait customer base reached 2.3 million as compared to 2.4 million for the previous year. The decrease is due to significant drop in overall population of Kuwait and the lockdown, of course, if for some of you who are aware of the lockdown that's happening right now in Kuwait. The company remain focused on introducing initiative and a product and services, and recently launch its cloud connected with two partnership with Microsoft and align well with Ooredoo digital transformation agenda. Ooredoo Kuwait was awarded with several awards during the year for innovation in business information hub, achieving growth in innovation customer service management. Next slide, please. Algeria macroeconomic indicator has stated showing sign of recovery despite movement restriction and home, I would say, home confinement measure. Revenue stood flat at QAR 1.2 billion. This is at QAR 1.2 billion in Qatari currency, in local currency increased by 8%. EBITDA margin improved by approximately 36% as the company continue to implement cost optimization initiative and look to improve efficiency. Network site available today in Algeria are 4G network, rollout also increasing. Algeria expand in the digital servicing offering through launch of Yooz, a new digital prepaid offer which focus on target in youth segment. Go to the next, please. When it comes to Tunisia revenue increased by 8%, support by favorable FX trend. The FX trend in Tunisia was positive. EBITDA was up to 5%, and EBITDA margin is also by 41% for the first half of the year. It due to value creation, a plan that focuses on streamlining operation through digitalizations of sale and distribution channels. In all, good performance in Tunisia and very strong. Our customer base stood at 7.2 million. It due to the change of the prepaid customer life cycle definition of 90 days, as opposed to 180 days previously. Lastly, I will move to Myanmar, which is the next slide, please. The political development, as you are all aware, in Myanmar continue to impact performance. With restriction in mobile and wireless broadband, Ooredoo Myanmar revenue and EBITDA declined by 16% and 9% respectively, as these restriction impacted data revenue, which were partially offset by increase in voice revenue. FX also declined by approximately 4%. Restriction started to ease towards end of quarter two. Ooredoo Myanmar customer base decreased by 7% to 13.8 million year-on-year. We saw trend start to reverse with 400,000 new customers toward end of second quarter of this year. Ooredoo Myanmar with OG remain focused to improve customer experience and focus on optimization in order to bring a better value for the group. This will conclude my presentation. Back to Andreas. Yeah. Thank you very much, Abdulla. That concludes the overall presentation, and now we are moving on to the Q&A part. There are multiple ways to ask questions here. If you are on Zoom, you can raise your hand, or you can type a question. If you are dialing in via a phone line, you have to push star nine to ask your questions. Sara is going to be coordinating the Q&A, so feel free to ask her any questions with regards to our first half results. Thank you. Do we have any questions? Sara, Jessica? No questions. That is unusual. Let me just repeat the instructions. If you're on the phone, you can dial in with star nine. If you are on Zoom, you can just raise your hand, which is a function at the bottom of your screen next to the share screen option. You can type something in the chat function. I see something is coming in now. Questions. I'm going to read out the first one. You can take the later one, Sarah. I see a question from Omar Maher from EFG. Could you please shed light on the recovery in Kuwait? Sure. Andreas, I can take that question. In Kuwait, as mentioned by our Group CFO, still the COVID-19 impact remains there. However, there has been some loosening on the restriction and the lockdown in Kuwait market. The recovery in Kuwait is, we have seen how they are really doing quite well in the bottom line. That's a good job that being done by our team in Kuwait for controlling the cost and also looking into a healthier, sustainable revenue from a service revenue. That also represents how the market starts rationalizing. That's a good signal also for H2 2021 that can be stabilizing the market further, and we can hopefully, Inshallah, enter 2022 in a good start point where the market is restabilizing for rationalizing the price pressure that they have been through. The cost control that they have been doing is part of also an umbrella of Ooredoo Group program and also part of a Braveheart study that we have in the group level that pertain to the cost optimization, but also a thanks to the local team in Kuwait for a further improvement in their cost and expenditure that they have for the first half of 2021. Excellent. Thank you very much. I just get the answer to the question for Omar. Then could we open up the microphone for Ziad Itani from Arqaam Capital for his question? Hi. Yes, thank you for the presentation. Just a few questions from our side. First, on Myanmar, how much of these operations have been written off, basically? Can we expect any further impairments in this asset? What of other assets that Ooredoo have? I mean, now we know there's quite some turmoil in Tunisia specifically. Do you think that there is a risk of additional impairments in that market? On that same question, with regards to the dividend policy, it's related to normalized earnings. Does this mean that when you look at H1, normalized earnings is up 50% year-on-year. Can we expect something positive on dividends or not really? Yeah. These are the two main questions. Great. Thank you very much, Ziad. The first question was with regard to the impairment, how much is left in Myanmar? I don't think that's visible in our financial. Are we thinking of an impairment for Tunisia? Maybe Abdullah as the CFO want to comment on this one. Sure. In terms of the impairment, we took the impairment up to the equity. For Tunisia, we do not see there is a potential impairment. Tunisia is doing very well in terms of the performance. I hope I answered the questions, Ziad. Yes. Great. On the dividends? Dividends, I think we have a positive cash flow, and this will be pertained to our dividend policy. The end of the year, I think the board of director will be in position to take a call on our dividend policy. Okay, perfect. Just one follow-up question on the one-offs that we're seeing in the financials. There is also close to QAR 280 million in FX losses. This is again related to Myanmar? Yes. Many more FX losses is continuing to have FX losses due to the deviation of the currency over there. This is, I would say, due to the currency position of the local versus US dollar versus Qatari riyal. Now that the equity has been written off, we can still expect FX losses in that market going forward? As long we have the operation live, yes. Okay, perfect. Finally, there's another impairment related to, I think, 2G or 3G farming in one of the subsidiaries to the tune of QAR 138 million. Can you potentially shed some light on this? Which market is this from, Ooredoo? This is for Indosat subsidiaries, and we have written off these 2G, 3G licenses. Okay, perfect. Thank you. Thank you. Yeah. Nishit was asking the same question before on the impairment in Myanmar. That's already covered with previous comments. There was a question from Nishit again, Nishit Lakhotia from SICO. He's asking what the outlook for the Qatari market, what are the revenue drivers here? Maybe that's a good question for Sheikh Mohammed. Yeah, sure. For Qatar, it is always as mentioned, our home market, and always we see Qatar, it is a very mature market. The revenue driver here, we always rely on the B2B side, and we have seen how the growth was visible and presented here in the first half of 2021. We see also one of the main drivers is in the ICT business. You see also Qatar getting into a major partnership with a blue-chip company like Google, Microsoft Azure. Recently we launched with the Ministry of Communication, and we are proud of that launch of TASMU platform that is really focusing on five main verticals in the country: healthcare, transport, logistics, environment, and so on. That puts Ooredoo Qatar in a very advanced level of leading the ICT market and being the leader to provide a smart solution across Qatar. This is part of our vision in Ooredoo Qatar to go into that business and being growing through the ICT business. Great. Thank you very much. There was another question from Huda Basungi. Could you please indicate the change in prepaid customer definitions in Tunisia will also be extended to other OpCos? I can already comment on this one. Across the Ooredoo OpCos in most of our groups, we have 90 days policy as well. In Tunisia, that's the standard that our competitors are following as well. It's just an adjustment to follow international practice here. There was the question with regards to interest rates from EFG from Omar Maher again. He's asking, maybe that's a question for Aziz. With the return of higher interest rates globally, has management strategy towards leverage changed recently? Abdullah, whoever wants to comment on this one. I'll take this one. Our policy is guided by the board. We have very strong guidance, quite conservative policy regarding leverage. As you've seen from our results, we've been slowly decreasing our leverage and will continue on that road going forward. Great. I see that Ziad's hand is still raised. Is it from the first question or is there a follow-up question, Ziad? Actually, I just have one follow-up question. With regards to the deleveraging process, indeed, the company has been substantially deleveraging over the past few years. This year, when you look at the finance costs, they're up by close to QAR 20 million year-on-year, and this is despite I recall you refinanced QAR 1 billion in a new fixed debt. The cost of debt everywhere has gone down drastically, why did the finance costs go up? Is this related to capitalization of assets in Indosat? I can take this question. This is, Ziad, due to the leasing cost. Okay. In Indonesia? Yes. Okay, perfect. Thank you. All powers. Any further questions, please raise your hand, type, or push star nine on your phone. There was one more question with regards to acceleration and deleveraging going forward. Andreas, what's the question? That's the question from Omar Maher. To clarify, should we expect an acceleration in deleveraging going forward? No, I don't think you should expect an acceleration. As you know, the guidance we have from our board and our shareholders is to keep the range of our net debt to EBITDA ratio between 1.5-2.5x. We currently stand at the very bottom of this range at 1.6x net debt to EBITDA. I think we're going to keep a stable level at these levels. Great. Thanks for clarifying that. We have another question from Talal Al-Nahedh. Please, can we have an update on Oman third player entry and competition? I can take this one. Third question? Omani updates. Yeah third player entry and competition. As per our knowledge, Vodafone Oman will start operation by fourth quarter of this year. From our perspective in Ooredoo, we are ready with a plan. This is one of the plans that we are introducing today by converting all our prepaid customers, or most of our prepaid customers to postpaid customers in order to have long-lasting relation with them. As I stated earlier, this is to our latest knowledge that they will go live by fourth quarter of this year. Great, thank you. There's a question from Nitya Arora. Can you please help explain the definition of normalized earnings for the purpose of dividend policy of 40%-60% normalized earnings? It's a normal item without any offsetting, like one time offset. For example, as we see today, there is a proceeds from the tower sales from Indosat or from Myanmar impairment. This is what we call it one offset. Normalized today, as Aziz explained in his presentation, from quarter to quarter and from half a year to half a year, we're having a very positive operational performance. This is what will be applicable, in my opinion, tomorrow to the dividend policy if the board see it is suitable to do it. Great, thank you. We have a question from Ziad. Yes. Ziad, you might be on mute. Yes. Okay. Now I can hear you. Perfect. Yeah. Just one question. When it comes to becoming an asset-light telecom player, what other markets you see opportunity to sell the towers and anything going on in Oman? We've seen Omantel recently sell their towers. What about Iraq? Because we also hear Zain Group is active on that market. Another question, any potential mergers, acquisitions, other than what's happening in Indonesia in the top pipeline or markets that you're considering? Very strategic question. René, do you want to comment on the asset-light approach? I think we mentioned that earlier. We are always reviewing, obviously our portfolio and are trying to optimize per strategy that was communicated the use of assets, right? For obvious reasons, we wouldn't comment on any M&A considerations in a call like this. What would be certain criteria you would consider when looking at the market if you want to enter a market? I mean, like very simple, and this is very traditional around the world, strong market position and obviously value creative for shareholders. Okay. FX stable as well, I would assume? Yeah, that's a consideration in that value creation for shareholders bucket, I would say, yeah. Great, thank you. Excellent. I see one more question from Huda Basungi. Could you comment on the 5G uptake across your footprint? You shared a few numbers on Qatar in previous calls and on Oman today. Are you still seeing a strong uptake momentum in Qatar? What about the other markets with regards to 5G? If I can take that question. In Qatar, we are very mature and ahead of other OpCos within the group, and we see the uptake and the appetite from the customer into 5G. Also, we have launched 5G in Kuwait and Oman and also recently in Maldives. There's also commercial launch, as we mentioned, or test on Indosat. We are having a full study with our footprint that need to be ahead of the competition and to be ahead also and pioneer on the recent or developed technology to be there. That's also taken into account our North Africa markets, as well as Iraq. Iraq, yes, we recently launched 4G, and we see a very big uptake in the customer for the 4G, and we see a big percentage of customers shift towards 4G. We are really ahead and thinking ahead also of our competition respective markets to be also dynamic on the technology that we are providing today. Excellent. Thank you very much. Any other raised hands, comments, questions? If not, then I would like to thank you very much for the continued interest in Ooredoo. Please do refer to our investor relations website for future updates and follow us on Twitter. Feel free to contact Sarah and myself for any further information that you might need, and we are looking forward to your participation in the next call, probably at the end of October. Meanwhile, thank you very much again for your interest in Ooredoo. Bye-bye.
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