Earnings release
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Ooredoo Q.P.S.C. Doha – Qatar Consolidated Financial Statements And Independent Auditor’s Report For The Year Ended 31 December 2025
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 CONTENTS PAGE(S) Independent auditor’s report _________________________________________1-8 Consolidated statement of profit or loss___________________________________ 9 Consolidated statement of comprehensive income ___________________________10 Consolidated statement of financial position _____________________________11-12 Consolidated statement of changes in equity_____________________________13-14 Consolidated statement of cash flows__________________________________15-16 Notes to the consolidated financial statements ___________________________17-99
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Independent auditor’s report to the shareholders of Ooredoo Q.P.S.C. PricewaterhouseCoopers - Qatar Branch, P.O. Box 6689, Doha, Qatar T: +974 4419 2777, F: +974 4467 7528 Ministry of Commerce and Industry Licence number 6 / Qatar Financial Markets Authority License number 120155 1 www.pwc.com Report on the audit of the consolidated financial statements Our opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of Ooredoo Q.P.S.C. (the “Company”) and its subsidiaries (together “the Group”) as at 31 December 2025, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with IFRS Accounting Standards. What we have audited The Group's consolidated financial statements comprise: • the consolidated statement of profit or loss for the year ended 31 December 2025; • the consolidated statement of comprehensive income for the year then ended; • the consolidated statement of financial position as at 31 December 202 5; • the consolidated statement of changes in equity for the year then ended; • the consolidated statement of cash flows for the year then ended; and • the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) as applicable to audits of financial statements of public interest entities and the ethical requirements that are relevant to our audit of the consolidated financial statements in the State of Qatar. We have fulfilled our other ethical responsibilities in accordance with IESBA Code and the ethical requirements in the State of Qatar.
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2 Our audit approach Overview Key audit matters • Revenue recognition and related complex IT systems; • Carrying value of cash generating units, including goodwill; and • Accounting treatment for uncertain tax exposures, regulatory and pending litigation exposures in the various markets that the Group operates in. As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud. We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
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3 Key audit matters (continued) Key audit matter How our audit addressed the Key audit matter Revenue recognition and related complex IT systems The Group reported revenue of QR. 24,603,894 thousand from telecommunication related activities. We considered this area to be a matter of most significance, as there is an inherent risk around the recognition of revenue in telecommunication services given that revenue is processed by complex IT systems involving large volumes of data with a combination of different products, services, and related prices. In addition, the application of the revenue accounting standard is complex and involves several key judgements and estimates. This resulted in a significant portion of our audit effort directed towards this area and related IT systems. Refer to the following notes to the consolidated financial statements for detail: • Note 3: Material accounting policies; • Note 4: Revenue; and • Note 43: Significant accounting judgements and estimates. We performed audit procedures over this significant risk area, which included a combination of tests of controls and substantive procedures as described below: • We obtained an understanding of the various significant revenue streams and identified the relevant controls, IT systems, interfaces and reports. • We assessed the Group's revenue accounting policies, including the key judgements and estimates applied by management in applying the requirements of IFRS 15 'Revenue from Contracts with Customers'. • We performed analytical procedures on significant revenue streams to identify unusual patterns and fluctuations in reported revenue as part of our risk assessment procedures. • We placed reliance on the Group’s IT systems and key internal controls. We involved our internal Information Technology specialists to assist us with testing the IT general controls and application controls of IT systems connected with the processing of transactions associated with significant revenue streams. • We performed automated and manual controls testing and substantive procedures, to verify the accuracy and occurrence of revenue. This included testing the end-to-end reconciliations from data records extracted from source systems to the billing systems and to the general ledger. • We used data analytic tools to identify revenue related manual journals posted to the general ledger as part of year end closing and traced them to source systems and traced them to supporting documentation to ensure validity. • We tested calls using various parameters to ascertain the instances will accurately be processed through the network elements and until recognition. • We also assessed the adequacy of the Group’s disclosures in respect to revenue.
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4 Key audit matters (continued) Key audit matter How our audit addressed the Key audit matter Carrying value of cash generating units, including goodwill The Group’s net assets include goodwill and license costs at the reporting date with a carrying value of QR. 4,433,889 thousand and QR. 9,266,289 thousand respectively. International Accounting Standard (IAS) 36 'Impairment of Assets' requires that goodwill acquired in a business combination to be tested for impairment at least annually. Moreover, the net assets include investments in associates and joint ventures with a carrying value of QR. 6,932,910 thousand as of that date. International Accounting Standard (IAS) 28 'Investments in associates and joint ventures' requires equity accounted for investments to be assessed for impairment where indicators of impairment are present. In addition, some of the businesses that these balances relate to operate in countries experiencing political instability and/or difficult economic conditions. There is a potential risk that these businesses may not trade in line with expectations and forecasts, resulting in an impairment. The Group’s assessment of the value in use (“ViU”) of its cash generating units (“CGUs”) involves estimation about the future performance of the respective businesses. In particular, the determination of the ViU is sensitive to the significant assumptions of projected earnings before interest, taxes, depreciation and amortisation (EBITDA) growth, long-term growth rates, and discount rates. As a result of the impairment tests performed, an impairment of goodwill amounting to QR. 119,768 thousand was recognised during the year ended 31 December 2025. We considered the Group’s impairment assessment to be a matter of most significance to the current year audit due to the significant judgements and assumptions made by management in performing the impairment assessments. Refer to the following notes to the consolidated financial statements for detail: Note 43: Significant accounting judgements and estimates; Note 14: Intangible assets and goodwill; and Note 17: Investment in associates and joint ventures. We performed audit procedures over this significant risk area, which included a combination of tests of controls and substantive procedures as described below: • We obtained an understanding of the business process for the impairment assessment, identifying the relevant internal controls and testing their design, implementation, and operating effectiveness over the impairment process. • We tested the mathematical accuracy of the valuation models used by management. We also assessed the appropriateness of the valuation methodology (discounted cash flows model) applied by management, with reference to market practice and the requirements of International Accounting Standard (IAS) 36 'Impairment of Assets'. • We assessed the reliability of the Group’s budgets included in the business plans (which form the basis of the cash flow forecasts), by comparing current period budgets to actual results and evaluating differences noted against underlying documentation and explanations obtained from management. We also agreed revenue and (EBITDA) used to calculate cash flow forecasts to approved budgets and/or business plans. • We utilised internal valuation experts at the Group and component levels (where deemed necessary) to support us in assessing the assumptions and methodology used by management, and in particular, we independently calculated the weighted average cost of capital and terminal growth rates for each significant cash generating unit. • We performed sensitivity analyses to determine the changes in key assumptions, namely, discount rates, terminal growth rates and forecast cash flows that would result in an impairment. We considered whether such changes were reasonably likely. • We also assessed the adequacy of the related disclosures provided in Note 14 and Note 17 to the consolidated financial statements, in particular the sensitivity disclosures in relation to reasonably possible changes in assumptions that could result in impairment.
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5 Key audit matters (continued) Key audit matter How our audit addressed the Key audit matter Accounting treatment for uncertain tax exposures, regulatory and pending litigation exposures in the various markets that the Group operates in The Group operates across multiple tax and regulatory jurisdictions and due to the inherent nature of exposures, rulings issued, assessments by tax and regulatory authorities and litigation in certain markets, the Group is exposed to various tax, legal and regulatory matters. In accounting for these matters, management applies significant judgement in estimating the provisions and related disclosures in accordance with IFRS Accounting Standards. We considered the accounting treatment for uncertain tax exposures, regulatory and pending litigation exposures in the various markets that the Group operates in to be a matter of most significance to the current year’s audit due to the magnitude, complexity and nature of these exposures, such that a significant level of management judgement is required in interpreting specific tax legislation, country specific laws and regulatory provisions or practices to determine whether a liability is required to be recognised or a contingent liability to be disclosed. Refer to the following notes to the consolidated financial statements for detail: • Note 38: Commitments, contingent liabilities and litigations; • Note 43: Significant accounting judgements and estimates; and • Note 42: Provisions. In response to the significant risk associated with the accounting treatment of uncertain tax exposures, regulatory and pending litigation, we performed the following procedures: • We obtained an understanding of the Group's policies in addressing tax, legal and regulatory requirements. • We assessed the adequacy of the design, implementation, and tested the operating effectiveness of controls over legal, regulatory, and tax registers, which includes the type of claim, amount, provision, and calculation of net exposure. • We held discussions with the Group's tax, legal and regulatory teams to evaluate management’s assessment of the potential outcome of significant exposures and we also discussed with management the facts and circumstances surrounding the significant exposures of the Group in order to evaluate the reasonableness of management’s conclusions. • We held discussions and reviewed reporting deliverables from our component audit teams in relation to significant exposures in overseas subsidiaries and joint venture. Our component teams also utilised relevant local tax and/or legal experts as necessary in arriving at their conclusions. • We obtained and reviewed external legal and tax opinions, legal confirmations and other relevant documents supporting management's conclusions on these matters. Where necessary, we held discussions with management’s legal department regarding material cases. • With the support of our component audit teams, we evaluated in-country management’s tax, legal and regulatory exposures assessment reports for consistency with reports prepared by Group management. • We also assessed the adequacy of the related disclosures provided in Note 38 and Note 42 to the consolidated financial statements.
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6 Other information The Directors are responsible for the other information. The other information comprises the Chairman’s message (but does not include the consolidated financial statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the complete annual report, which is expected to be made available to us after that date. Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the complete annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Directors and those charged with governance for the consolidated financial statements The Directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards and with the requirements of the Qatar Commercial Companies Law number 11 of 2015, as amended by Law number 8 of 2021 , and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group's financial reporting process.
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7 Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assu rance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judg ement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. • Conclude on the appropriateness of the Directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are respo nsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
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8 Auditor’s responsibilities for the audit of the consolidated financial statements (continued) From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on other legal and regulatory requirements Further, as required by the Qatar Commercial Companies Law number 11 of 2015, as amended by Law number 8 of 2021, we report that: • We have obtained all the information we considered necessary for the purpose of our audit; • The Company has carried out a physical verification of inventories at the year-end in accordance with observed principles; • The Company has maintained proper books of account and the consolidated financial statements are in agreement therewith; • The financial information included in the Chairman's message is in agreement with the books and records of the Company; and • Nothing has come to our attention, which causes us to believe that the Company has breached any of the provisions of the Qatar Commercial Companies Law number 11 of 2015, as amended by Law number 8 of 2021 or of its Articles of Association, which would materially affect the reported results of its operations or its financial position as at 31 December 202 5. For and on behalf of PricewaterhouseCoopers – Qatar Branch Qatar Financial Market Authority registration number 120155 Mark Menton Auditor’s registration number 364 Doha, State of Qatar 9 February 2026
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 9 CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER Note 2025 2024 QR.’000 QR.’000 Revenue 4 24,603,894 23,594,817 Other income 5 134,498 234,935 Network, interconnect and other operating expenses 6 (11,167,718) (10,730,106) Royalty fees 11 (196,769) (229,825) Employee salaries and associated costs 7 (3,068,161) (2,892,482) Depreciation and amortisation 8 (4,503,752) (4,317,576) Finance costs 9 (831,526) (779,141) Finance income 9 583,397 504,414 Share of net profit of associates and joint ventures 17 295,530 372,664 Impairment losses on financial assets 39 (174,188) (317,398) Impairment losses on goodwill and other non-financial assets 28 (131,375) (130,406) Other gains/(losses) – net 10 232,180 (434,307) Profit before income tax and other tax related fees 5,776,010 4,875,589 Income tax and other tax related fees 20 (1,163,937) (848,487) Profit for the year 4,612,073 4,027,102 Profit attributable to: Shareholders of the parent 3,864,564 3,435,893 Non-controlling interests 747,509 591,209 4,612,073 4,027,102 Basic and diluted earnings per share (Attributable to shareholders of the parent) (Expressed in QR. per share) 12 1.21 1.07 Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of th ese consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 10 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER Note 2025 2024 QR.’000 QR.’000 Profit for the year 4,612,073 4,027,102 Other comprehensive income Items that may be reclassified subsequently to profit or loss Share of other comprehensive loss of associates and joint ventures 27 (14,047) (4,520) Foreign currency translation differences 27 274,298 31,105 Items that will not be reclassified subsequently to profit or loss Net changes in fair value on investments in equity instruments designated as at FVTOCI 27 3,978 90,731 Net changes in fair value of employees benefit reserve 27 1,722 - Share of other comprehensive loss of associates and joint ventures 27 (941) (124) Other comprehensive income - net of tax 265,010 117,192 Total comprehensive income for the year 4,877,083 4,144,294 Total comprehensive income attributable to: Shareholders of the parent 4,071,819 3,570,374 Non-controlling interests 805,264 573,920 4,877,083 4,144,294 Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of th ese consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 11 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER Note 2025 2024 QR.’000 QR.’000 ASSETS Non-current assets Property, plant and equipment 13 15,291,779 13,885,931 Intangible assets and goodwill 14 14,598,778 13,990,915 Right-of-use assets 15 3,165,996 2,829,755 Investment properties 16 86,438 106,127 Investment in associates and joint ventures 17 6,932,910 6,980,105 Financial assets at fair value 18 985,964 1,069,882 Other non-current assets 19 655,735 299,370 Deferred tax assets 20 312,644 310,897 Contract costs 21 214,788 153,448 Total non-current assets 42,245,032 39,626,430 Current assets Inventories 22 283,716 351,833 Contract costs 21 249,505 227,830 Trade and other receivables 23 4,938,743 4,804,015 Bank balances and cash 24 15,715,427 16,933,408 Total current assets excluding assets classified as held for sale 21,187,391 22,317,086 Assets classified as held for sale 36 414,743 - Total current assets 21,602,134 22,317,086 Total assets 63,847,166 61,943,516 EQUITY AND LIABILITIES EQUITY Share capital 25 3,203,200 3,203,200 Legal reserve 26 12,434,282 12,434,282 Fair value and other reserves 26 385,284 396,441 Employees’ benefits reserve 26 (2,910) (3,691) Translation reserve 26 (6,040,606) (6,258,237) Other statutory reserves 26 1,606,989 1,515,696 Retained earnings 18,543,769 16,949,714 Equity attributable to shareholders of the parent 30,130,008 28,237,405 Non-controlling interests 4,385,690 4,211,661 Total equity 34,515,698 32,449,066 Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of th ese consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 13 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Attributable to shareholders of the parent Share capital Legal reserve Fair value reserve Employees’ benefits reserve Translation reserve Other statutory reserves Retained Earnings Total Non – controlling interests Total Equity QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 At 1 January 2024 3,203,200 12,434,282 312,467 (3,567) (6,307,061) 1,457,122 15,361,878 26,458,321 4,116,031 30,574,352 Profit for the year - - - - - - 3,435,893 3,435,893 591,209 4,027,102 Other comprehensive income - - 85,781 (124) 48,824 - - 134,481 (17,289) 117,192 Total comprehensive income for the year - - 85,781 (124) 48,824 - 3,435,893 3,570,374 573,920 4,144,294 Realised gain on FVTOCI investment reclassified to retained earnings - - (1,807) - - - 1,807 - - - Transactions with shareholders of the parent, recognised directly in equity Dividend for 2023 (Note 35) - - - - - - (1,761,760) (1,761,760) - (1,761,760) Transfer to other statutory reserves - - - - - 58,574 (58,574) - - - Transactions with non-controlling interests, recognised directly in equity Dividends paid to non-controlling interests - - - - - - - - (478,012) (478,012) Transactions with non-owners of the Group, recognised directly in equity Transfer to employee association fund - - - - - - (1,470) (1,470) (278) (1,748) Transfer to social and sports fund (Note 46) - - - - - - (28,060) (28,060) - (28,060) At 31 December 2024 3,203,200 12,434,282 396,441 (3,691) (6,258,237) 1,515,696 16,949,714 28,237,405 4,211,661 32,449,066 Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of these consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) Attributable to shareholders of the parent Share capital Legal reserve Fair value reserve Employees’ benefits reserve Translation reserve Other statutory reserves Retained Earnings Total Non – controlling interests Total Equity QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 At 1 January 2025 3,203,200 12,434,282 396,441 (3,691) (6,258,237) 1,515,696 16,949,714 28,237,405 4,211,661 32,449,066 Profit for the year - - - - - - 3,864,564 3,864,564 747,509 4,612,073 Other comprehensive income - - (11,157) 781 217,631 - - 207,255 57,755 265,010 Total comprehensive income for the year - - (11,157) 781 217,631 - 3,864,564 4,071,819 805,264 4,877,083 Transactions with shareholders of the parent, recognised directly in equity Dividend for 2024 (Note 35) - - - - - - (2,082,080) (2,082,080) - (2,082,080) Transfer to other statutory reserves - - - - - 91,293 (91,293) - - - Transactions with non-controlling interests, recognised directly in equity Change in subsidiary’s non-controlling interest - - - - - - (19,288) (19,288) 699 (18,589) Change in associates’ non-controlling interest - - - - - - (31,163) (31,163) - (31,163) Dividends paid to non-controlling interests - - - - - - - - (631,637) (631,637) Transactions with non-owners of the Group, recognised directly in equity Transfer to employee association fund - - - - - - (1,569) (1,569) (297) (1,866) Transfer to social and sports fund (Note 46) - - - - - - (45,116) (45,116) - (45,116) At 31 December 2025 3,203,200 12,434,282 385,284 (2,910) (6,040,606) 1,606,989 18,543,769 30,130,008 4,385,690 34,515,698 Independent auditor’s report is set out in pages 1-8. The accompanying notes set out on pages 17 to 99 form an integral part of these consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 15 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER Note 2025 2024 QR.’000 QR.’000 Cash flows from operating activities Profit before income tax and other tax related fees 5,776,010 4,875,589 Adjustments for: Depreciation and amortisation 8 4,503,752 4,317,576 Dividend income 5 (5,246) (10,153) Impairment losses on financial assets 39 174,188 317,398 Impairment losses on goodwill and other non-financial assets 28 131,375 130,406 Gain on disposal of investments at FVTPL - (12) Unrealised gain on equity investment at FVTPL (41,557) (19,580) Gain on disposal of non-financial assets 10 (29,789) (45,504) Gain on deconsolidation of a subsidiary 10 - (117,895) Finance costs 9 831,526 779,141 Finance income 9 (583,397) (504,414) Provision for employees’ benefits 31 176,680 186,394 Share of results of associates and joint ventures 17 (295,530) (372,664) Operating profit before working capital changes 10,638,012 9,536,282 Working capital changes: Changes in inventories 22 68,117 (44,657) Changes in trade and other receivables 23 (400,891) 141,656 Changes in contract costs 21 (83,015) 7,422 Changes in trade and other payables 33 338,909 (77,459) Changes in contract liabilities 34 33,187 15,901 Cash generated from operations 10,594,319 9,579,145 Interest paid (815,591) (680,725) Employees’ benefits paid (152,780) (161,868) Income tax and other tax related fees paid (872,261) (704,226) Net cash generated from operating activities 8,753,687 8,032,326 Cash flows from investing activities Acquisition of property, plant and equipment 13 (4,564,363) (3,058,912) Acquisition of intangible assets 14 (892,528) (214,825) Proceeds from disposal of non-financial assets 10 83,136 64,806 Proceeds from disposal of financial assets at fair value 129,431 6,495 Proceeds from disposal of subsidiary 109,245 74,409 Released restricted deposits 651,594 137,020 Additions to restricted deposits (835,179) (139,396) Net movement in short-term deposits (549,390) (449,960) Dividends received from an associate and a joint venture 193,666 144,881 Other dividends received 5,246 10,153 Interest received 580,523 482,213 Net cash used in investing activities (5,088,619) (2,943,116) Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of these consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 (All amounts are expressed in Qatari Riyals unless otherwise stated) 16 CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER Note 2025 2024 QR.’000 QR.’000 Cash flows from financing activities Proceeds from loans and borrowings 1,064,519 3,419,855 Repayments of loans and borrowings (3,421,458) (724,860) Proceeds from disposal of stake in a subsidiary without a change in control 72,830 - Principal element of lease payments 15 (681,181) (701,591) Additions to deferred financing costs (831) (24,096) Dividends paid to shareholders of the parent 35 (2,082,080) (1,761,760) Dividends paid to non-controlling interests in subsidiaries (631,637) (478,012) Net cash used in financing activities (5,679,838) (270,464) Net (decrease)/increase in cash and cash equivalents (2,014,770) 4,818,746 Cash and cash equivalents at the beginning of the year 15,116,779 10,119,799 Effect of exchange rate fluctuations 59,570 178,234 Cash and cash equivalents at the end of the year 24 13,161,579 15,116,779 Refer to note 24 for details regarding non-cash financing and investing activities. Independent auditor’s report is set out in pages 1-8. The accompanying notes set out in pages 17 to 99 form an integral part of th ese consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 17 1. REPORTING ENTITY Qatar Public Telecommunications Corporation (the “Corporation”) was formed on 29 June 1987 domiciled in the State of Qatar by Law No. 13 of 1987 to provide domestic and international telecommunication services within the State of Qatar. The Company’s registered office is located at 100 Westbay Tower, Doha, State of Qatar. The Corporation was transformed into a Qatari Shareholding Company under the name of Qatar Telecom (Qtel) Q.S.C. (the “Company”) on 25 November 1998, pursuant to Law No. 21 of 1998. In June 2013, the legal name of the Company was changed to Ooredoo Q.S.C. This change had been duly approved by the shareholders at the Company’s extraordinary general assembly meeting held on 31 March 2013. The Company changed its legal name from Ooredoo Q.S.C. to Ooredoo Q.P.S.C. to comply with the provisions of the new Qatar Commercial Companies Law issued on 7 July 2015. The Company is a telecommunications service provider licensed by the Communications Regulatory Authority (CRA) to provide both fixed and mobile telecommunications services in the state of Qatar. As a licensed service provider, the conduct and activities of the Company are regulated by CRA pursuant to Law No. 34 of 2006 (Telecommunications Law) and the Applicable Regulatory Framework. During 2021, the Qatar Commercial law number 11 of 2015 has been amended by Law number 8 of 2021. The management assessed the compliance of the Company and the required changes to the Article of the Association was amended in the Extraordinary General Assembly Meeting held on 8 March 2022. The Company and its subsidiaries (together referred to as the “Group”) provides domestic and international telecommunication services in Qatar and elsewhere in the Asia and Middle East and North African (MENA) region. Qatar Investment Authority – the sovereign wealth fund of the State of Qatar - is the Parent and Ultimate controlling party of the Group (the “Parent” and the “Ultimate controlling party”). In line with an amendment issued by Qatar Financial Markets Authority (“QFMA”), effective from May 2018, listed entities are required to comply with the Qatar Financial Markets Authority’s law and relevant legislations including Governance Code for Compani es & Legal Entities Listed on the Main Market (the “Governance Code”). The Group has taken appropriate steps to comply with the requirements of the Governance Code. The consolidated financial statements of the Group for the year ended 31 December 202 5 were authorised for issuance in accordance with a resolution of the Board of Directors of the Company on 9 February 2026. 2. BASIS OF PREPARATION The consolidated financial statements of the Group have been prepared in accordance with IFRS Accounting Standards. IFRS Accounting Standards comprise the following authoritative literature: • IFRS Accounting Standards; • IAS Standards; and • Interpretations developed by the IFRS Interpretations Committee (IFRIC Interpretations) or its predecessor body, the Standing Interpretations Committee (SIC Interpretations). Basis of measurement The consolidated financial statements have been prepared on a historical cost basis except for the following: • Equity instruments, classified as Fair Value Through Other Comprehensive Income (“FVTOCI”) and Fair Value Through Profit and Loss (“FVTPL”), are measured at fair value; • Derivative financial instruments are measured at fair value;
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 18 2. BASIS OF PREPARATION (CONTINUED) Basis of measurement (continued) • Liabilities for long term incentive points -based payments arrangements are measured at FVTPL; and • Assets classified as held for sale are measured at the lower of their carrying amount or fair value less cost to sell. Historical cost is based on the fair value of the consideration, which is given in exchange for goods and services. The methods used to measure fair values are discussed further in note 40. The consolidated financial statements are prepared in Qatari Riyals, which is the Company’s functional and presentation currency, and all values are rounded to the nearest thousands (QR.’000) except when otherwise indicated. Judgements, estimates and risk management The preparation of the consolidated financial statements requires management to make judg ements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judg ements made by management in applying the Group’s accounting policies, the key sources of estimation uncertainty and financial risk management objectives and policies are disclosed in note 43. 3. MATERIAL ACCOUNTING POLICIES The consolidated financial statements comprise the financial statements of Ooredoo Q.P.S.C. and its subsidiaries. The accounting policies set out below have been applied consistently to all the periods presented (except as mentioned otherwise) in these con solidated financial statements, and have been applied consistently by the Group entities, where necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with those used by the Group. 3.1 GOING CONCERN The directors have at the time of approving the consolidated financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the consolidated financial statements. 3.2 BASIS OF CONSOLIDATION The consolidated financial statements incorporate the financial statements of the Company and entities controlled by the Company (including structured entities) and its subsidiaries. Control is achieved when the Company: - has power over the investee; - is exposed, or has rights, to variable returns from its involvement with the investee; and - has the ability to use its power to affect returns. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including: - the size of the Company’s holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 19 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) - potential voting rights held by the company, other vote holders or other parties; - rights arising from contractual arrangements; and - any additional facts and circumstances that indicate that the company has or does not have the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit and loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non -controlling interests. Total comprehensive income of subsidiaries is attributable to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A) BUSINESS COMBINATIONS AND GOODWILL The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in the acquisition is measured at fair value, as are the identifiable net assets acquired, and any amount of any non-controlling interest in the acquiree. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in the consolidated statement of profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities. The consideration transferred does not include amounts related to the settlement of pre -existing relationships. Such amounts are generally recognised in profit or loss. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not remeasured and settlement is accounted for within equity. Contingent consideration, classified a s an asset or liability that is a financial instrument and within scope of IFRS 9 Financial instruments, is measured at fair value with changes in fair value recognised in the consolidated statement of profit or loss in accordance with IFRS 9. Other contin gent considerations that are not within the scope of IFRS 9 are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recogni sed for non -controlling interests and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group reassesses whether it correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports in the consolidated financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, which is no longer than one year from the acquisition date, the provisional amounts recogni sed at acquisition date are retrospectively adjusted to reflect new information obtained about facts and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the amounts recognised as of that date. During the measurement period, the Group also recognises additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 20 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) A) BUSINESS COMBINATIONS AND GOODWILL (CONTINUED) After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of our cash -generating units , or CGUs, that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Where goodwill acquired in a business combination has yet to be allocated to identifiable CGUs because the initial accounting is incomplete, such provisional goodwill is not tested for impairment unless indicators of impairment exist and we can reliably allocate the carrying amount of goodwill to a CGU or group of CGUs that are expected to benefit from the synergies of the business combination. Where goodwill has been allocated to a CGU and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the dispose d operation and the portion of the CGU retained. B) NON-CONTROLLING INTERESTS (“NCI”) NCI are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. C) SUBSIDIARIES Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Th e financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. D) LOSS OF CONTROL When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is recognised in the consolidated statement of profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost. E) INTERESTS IN ASSOCIATES AND JOINT VENTURES Associates are those entities in which the Group has significant influence, but not control or joint control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when d ecisions about the relevant activities require unanimous consent of the parties sharing control.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 21 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) E) INTERESTS IN ASSOCIATES AND JOINT VENTURES (CONTINUED) Interests in associates and joint ventures are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements include the Group’s shar e of the profit or loss and other comprehensive income of associates and joint ventures less any impairment in the value of individual investments. Losses of the associates and joint ventures in excess of the Group’s interest are not recognised unless the Group has incurred legal or constructive obligations on their behalf. The carrying values of investments in associates and joint ventures are reviewed on a regular basis and if an impairment in the value has occurred, it is written off in the period in whi ch those circumstances are identified. Any excess of the cost of acquisition over the Group’s share of the fair values of the identifiable net assets of the associates and joint ventures at the date of acquisition is recognised as goodwill and included as part of the cost of investment. Any def iciency of the cost of acquisition below the Group’s share of the fair values of the identifiable net assets of the associates and joint ventures at the date of acquisition is credited to the consolidated statement of profit or loss in the year of acquisit ion. The Group’s share of associates’ and joint ventures’ results is based on the most recent financial statements or interim financial statements drawn up to the Group’s reporting date. For the Group’s joint ventures, the Group accounts for its share in the results, assets and liabilities of its joint venture s using the equity method of accounting. One of the Group’s joint ventures is an investment entity and applies fair value measurement to its subsidiaries. Profits and losses resulting from upstream and downstream transactions between the Group (including its consolidated subsidiaries) and its associate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of unre lated group’s interests in the associates or joint ventures. F) TRANSACTIONS ELIMINATED ON CONSOLIDATION Intra-group balances and transactions, and any unrealised income and expenses arising from intra - group transactions, are eliminated. Unrealised gains arising from transactions with associates and joint ventures are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 22 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) F) TRANSACTIONS ELIMINATED ON CONSOLIDATION (CONTINUED) The subsidiaries of the Company, incorporated in the consolidated financial statements of the Company are as follows: Name of subsidiary Principal activity Country of incorporation Group effective shareholding percentage as at 31 December 2025 2024 Ooredoo International Investments L.L.C. Investment company Qatar 100% 100% Ooredoo Group L.L.C. Management service company Qatar 100% 100% Starlink W.L.L. Telecommunication company Qatar 72.5% 72.5% Ooredoo IP L.L.C. Branding license company Qatar 100% 100% Ooredoo Global Services L.L.C. Service company Qatar 100% 100% Seyoula International Investments W.L.L. Investment company Qatar 100% 100% OIH Investment L.L.C. Investment company Qatar 100% 100% Al Wokaer East L.L.C. Investment company Qatar 100% 100% Barzan East L.L.C. Investment company Qatar 100% 100% Ooredoo Financial Services L.L.C. Service company Qatar 100% 100% Al Wakra East L.L.C. Investment company Qatar 100% 100% Al Tamyeez for Technological Services L.L.C. Investment company Qatar 100% 100% AlAbraj Alaoula for General Contracting W.L.L. Service company Qatar 100% 100% Mena Digital Hub B.V. W.L.L. Investment company Qatar 100% 100% Mena Digital Solutions Co W.L.L Service company Qatar 100% 100% Mena Digital Hub Group L.L.C. Management services company Qatar 100% 100% OFT International L.L.C. Management service company Qatar 100% 100% Al Tamayuz Technological Services L.L.C. Service company Qatar 100% 100% Mena Technology Holdings L.L.C. Investment Company Qatar 100% 100% Mena TowerCo Holdings L.L.C Investment Company Qatar 100% 100% Starlink L.L.C Investment/Service Qatar 100% - OFN LLC Service company Qatar 100% - Wataniya Telecom Algerie S.P.A. (”Ooredoo Algeria”) Telecommunication company Algeria 74.4% 74.4% Mediterraneenne Prestations De Services EURL Service company Algeria 74.4% 74.4% Ooredoo Investment Holding W.L.L. Investment company Bahrain 100% 100% Ooredoo South East Asia Holding W.L.L. Investment company Bahrain 100% 100% Al Khor Holding W.L.L. Investment company Bahrain 100% 100% Al Wataniya Gulf Telecommunications Holding Company W.L.L. Investment company Bahrain - 92.1% Barzan Holding W.L.L. Investment company Bahrain 100% 100%
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 23 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) F) TRANSACTIONS ELIMINATED ON CONSOLIDATION (CONTINUED) Name of subsidiary Principal activity Country of incorporation Group effective shareholding percentage as at 31 December 2025 2024 Laffan Holding W.L.L. Investment company Bahrain 100% 100% Zekreet Holding W.L.L. Investment company Bahrain - 100% Al Dafna Holding W.L.L. Investment company Bahrain 100% 100% Ooredoo International Finance Limited Financing company Bermuda 100% 100% Crave International Ltd. Investment company British Virgin Islands - 100% IP Holdings Limited Investment company Cayman Islands 100% 100% Ooredoo Myanmar Tower Holding Co. Investment company Cayman Islands - 100% wi-tribe Asia Limited Investment company Cayman Islands - 100% Raywood Inc. Investment company Cayman Islands 100% 100% Newood Inc. Investment company Cayman Islands 100% 100% wi-tribe Limited Investment company Cayman Islands 86.1% 86.1% Centofex Ltd Investment company Cyprus 100% 100% Quantstar Services LLP Service company India 99.9% - Asiacell Communications PJSC Telecommunication company Iraq 64.1% 64.1% Midya Telecom Company Limited (“Fanoos”) (i) Telecommunication company Iraq 49% 49% Al-Rowad General Services Limited Investment company Iraq 100% 100% Masarat Al-Iraq Information Technology Co.Ltd Service company Iraq 49% 49% Iraq Al Mustakbal For Communication And Internet Services & Elektronic Services Ltd (ii) Investment company Iraq 49% 49% National Mobile Telecommunications Company K.S.C.P (“Ooredoo Kuwait”) Telecommunication company Kuwait 92.1% 92.1% Phono for General Trading and Contracting Company W.L.L. Telecommunication company Kuwait 92.1% 92.1% Fast Telecommunications Company W.L.L. Telecommunication company Kuwait 92.1% 92.1% Abraj Al Kuwait Holding LLC Service company Kuwait 92.1% 92.1% Kuwait Digital Hub S.P.C Service company Kuwait 100% 100% Ooredoo Maldives PLC Telecommunication company Maldives 83.3% 83.3% WARF Telecom International Pvt. Ltd. Telecommunication company Maldives 59.9% 59.9% TechFin Maldives Pvt Ltd. Service company Maldives 83.3% 83.3% Ooredoo Consortium Ltd. Investment company Malta 92.1% 92.1% Ooredoo Tunisia Holdings Ltd. Investment company Malta 92.1% 92.1%
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 24 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) F) TRANSACTIONS ELIMINATED ON CONSOLIDATION (CONTINUED) Name of subsidiary Principal activity Country of incorporation Group effective shareholding percentage as at 31 December 2025 2024 Ooredoo Malta Holdings Ltd. Investment company Malta 100% 100% MENA Digital Holdings B.V. Investment company Netherlands 100% 100% Mena Digital Hub B.V. Investment company Netherlands 100% 100% Omani Qatari Telecommunications Company S.A.O.G. (“Ooredoo Oman”) Telecommunication company Oman 55% 55% Duqm Data Centre SAOC (iii) Telecommunication company Oman 39% 39% Gulf Towers S.P.C Service company Oman 55% 55 % Starlink Tech S.P.C Service company Oman 72.5% 72.5% Data Center Digital Hub S.P.C Service company Oman 100% 100% Data Center Digital Solutions S.P.C Service company Oman 100% 100% Oman OFT International SAOC Service company Oman 100% 100% Wataniya Palestine Mobile Telecommunications Public Shareholding Company (“Ooredoo Palestine”) (iv) Telecommunication company Palestine 45.4% 45.4% Starlink Arabia Service company Saudi Arabia 72.5% 72.5% Ooredoo South East Asia Holding Pte. Ltd Investment company Singapore 100% 100% Ooredoo Tunisie S.A. (“Ooredoo Tunisia”) Telecommunication company Tunisia 84.1% 84.1% Tunisia Towers Infraco SARL Service company Tunisia 84.1% 84.1% Tunisia Hyperscale Solutions LLC Service company Tunisia 100% 100% OFT Tunisie S.A. Service company Tunisia 100% - Wataniya International FZ – L.L.C. Investment company United Arab Emirates 92.1% 92.1% (i) The Group incorporated Raywood Inc (“Raywood”), a special purpose entity registered in Cayman Islands with 100% (2024: 100%) voting interest held by the Group to carry out investment activities in Iraq. Raywood acquired a 49% interest in Midya Telecom Company Limited (“Fanoos”) in Iraq. Although the Group holds less than a majority of the shareholding of Fanoos, the Group can still demonstrate its power by virtue of shareholders’ agreement entered into between Raywood and Fanoos, Iraq. This arrangement exposes the Group t o variable returns and gives the Group the ability to affect those returns over Fanoos. (ii) The Group via its 100% owned subsidiary in Qatar (“Al Wakra East LLC”) acquired 49% legal shareholding of Iraq Mustakbal Company for communications, Internet and Electronic Services Ltd. (“Iraq Al Mustakbal”) and its 100% owned subsidiary Masarat Al -Iraq Information Technology Co. Ltd. (“Masarat”) in Iraq. Although the Group holds less t han a majority of the voting rights of Iraq Al Mustakbal and Masarat, the Group can still demonstrate its power by virtue of shareholders’ agreement entered into between the shareholders of Iraq Al Mustakbal. This arrangement exposes the Group to variable returns and gives the Group the ability to affect those returns over Iraq Al Mustakbal and Masarat.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 25 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 BASIS OF CONSOLIDATION (CONTINUED) F) TRANSACTIONS ELIMINATED ON CONSOLIDATION (CONTINUED) (iii) The Group holds an effective 39% (2024: 39%) of Duqm Data Centre SAOC and has established control over the entity, as it can demonstrate power, indirectly, through Omani Qatari Telecommunications Company S.A.O.G. (“Ooredoo Oman”) by virtue of Ooredoo Oman having more than 51% of the voting interest or control in this company. This exposes the Group to variable returns from its investment and gives the Group the ability to affect those returns through its power over them, hence, this company has been conside red as a subsidiary of the Group. (iv) The Group holds an effective 45.4% (2024: 45.4%) of Ooredoo Palestine and has established control over the entity as it can demonstrate power through its indirect ownership of National Mobile Telecommunications Company K.S.C.P. (“ Ooredoo Kuwait ”) by virtue of Ooredoo Kuwait holding 49.3% of the voting interests in Ooredoo Palestine along with its right to appoint the majority of the board of directors at all times, where major decisions are taken with simple majority. Ooredoo Kuwait has also entered into an arrangement with the other majority shareholder, where Ooredoo Kuwait is able to unilaterally make decisions over the relevant activities of Ooredoo Palestine. This exposes the Group to variable returns and gives the Group the ability to affect those returns through its power over Ooredoo Palestine. 3.3 CHANGES TO MATERIAL ACCOUNTING POLICIES 1. New and amended standards adopted by the Group A new or amended standard became applicable for the current reporting period, and the Group has applied the following standards and amendments for the first time for their annual reporting period commencing 1 January 2025: • Lack of exchangeability – Amendments to IAS 21 The amendment listed above did not have a material impact on the amounts recognised in the current or prior periods and are not expected to significantly affect future periods. 2. Impact of new standards (issued but not yet adopted by the Group) • IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027): IFRS 18 will replace IAS 1 ‘Presentation of financial statements’, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though IFRS 18 will not impact the recognition or measurement of i tems in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, particularly those related to the statement of financial performance and providing management-defined performance measures within the consolidated financial statements.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 26 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.3 CHANGES TO MATERIAL ACCOUNTING POLICIES (CONTINUED) 2. Impact of new standards (issued but not yet adopted by the Group) (continued) Management is currently evaluating the comprehensive impact of implementing this new standard on the group's consolidated financial statements and will proceed with its adoption as of the mandatory effective date , 1 January 2027. As retrospective application is required, comparative figures for the financial year ending 31 December 2026 will be restated in compliance with IFRS 18. Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period and have not been adopted by the Group. The management of the Group is in the process of assessing the impact of these new standards, interpretation and amendments which will be adopted in the Group’s financial statement as and when they are applicable. 3.4 REVENUE Revenue is measured at an amount that reflects the considerations, to which an entity expects to be entitled in exchange for transferring goods or services to customers, excluding amounts collected on behalf of third parties. Revenue is adjusted for expect ed discounts and volume discounts, which are estimated based on the historical data or forecast and projections. The Group recognises revenue when it transfers control over goods or services to its customers. Revenue from telecommunication services mainly consists of access charges, airtime usage, messaging, interconnect fees, data and connectivity services, connection fees and other related services. Services are offered separately or as bundled packages along with other services and/ or devices. For bundle packages, the Group accounts for individual products and services separately if they are distinct i.e. if a product or service is separately identifiable from other items in the bundled package and if a customer can benefit from it. The consideration is allocated between separate products and services (i.e. distinct performance obligations, “PO”) in a bundle based on their stand -alone selling prices. The stand-alone selling prices are determined based on the observable price at which the Group sells the products and services on a standalone basis. For items that are not sold separately (e.g. customer loyalty program) the Group estimates standalone sell ing prices using other methods (i.e. adjusted market assessment approach, cost plus margin approach or residual approach). Recognition of revenue Management considers recognising revenue over time, if one of the following criteria is met, otherwise revenue will be recognised at a point in time: a) the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; b) the Group’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or c) the Group’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. The Group principally obtains revenue from following key segments: Mobile services Mobile service contracts typically consist of specific allowances for airtime usage, messaging, data, and connection fees. In this type of arrangement, the customer simultaneously receives and consumes the benefits as the Group performs the service. Thus, the revenue is recognised over the period as and when these services are provided.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 27 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.4 REVENUE (CONTINUED) Fixed services The Group offers fixed services which normally include installation and configuration services, internet connectivity, television and telephony services. These services are bundled with locked or unlocked equipment, such as routers and/or set -top boxes. Si milar to mobile service contracts, fixed service revenue with locked equipment is recognised over the contract period, whereas revenue recognition for unlocked equipment is upon transfer of control to the customer. Sale of unlocked devices Devices such as smartphones, tablets, Mi-Fis and other similar devices that are sold separately and are not bundled with mobile/fixed service contracts, have standalone value to the customer and are unlocked devices. The revenue from the sale of unlocked d evices is recognised at a point in time upon transfer of control to the customer. Interconnection service Revenue from the interconnection of voice and data traffic with other telecommunications operators is recognised over time as and when the transit occurred across our network. Revenue from transit services The Group determines whether it will be acting as principal or an agent on these types of arrangements and accordingly recognises gross revenue if it is a principal, and net revenue if it is an agent. The revenue is recognised over the period as and when these services are provided. Customer loyalty schemes The Group has concluded that: (i) it is acting as a principal when the customer loyalty points are redeemed through the Group’s own services or products and recognises revenue on a gross basis; and (ii) is acting as an agent on customer loyalty scheme arra ngements which are redeemed through its partners where revenue is recognised on a net basis. The Group concluded that the loyalty scheme gives rise to a separate performance obligation because it generally provides a material right to the customer. The Group allocates a portion of the transaction price to the loyalty scheme liability based on the relative standard standalone selling price of loyalty points and a contract liability is recognised until the points are redeemed or expired. Value-added services The Group has offerings where it provides customers with additional content, such as music and video streaming and SMS services, as Value -Added Services (VAS). For these types of services, the Group determines whether they are acting as a principal and acc ordingly recognises gross revenue if it is a principal, and net revenue where they have concluded they are an agent. Connection fees The Group has concluded that connection fees charged for the activation of services will be recognised over the contract period. The connection fees that are not considered as a distinct performance obligation shall form part of the transaction price and recognised over the period of service.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 28 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.4 REVENUE (Continued) Recognition of revenue (continued) Multi elements arrangements (Mobile contract plus handset) The Group has concluded that in case of multiple elements arrangements with subsidi sed products delivered in advance, the component delivered in advance (e.g. mobile handset), will require recognition of a contract asset. Contract asset primarily relates to the Group’s right to consideration for services and goods provided but not billed at the reporting date. Installation cost, commissions to third party dealers, marketing expenses The Group has concluded that commissions and installation costs meet the definition of incremental costs to acquire a contract or a cost to fulfil a contract. The Group has capitali sed these expenses as contract cost assets and amortised as per portfolio approach. Upfront commission The Group has concluded that the sale of prepaid cards to dealers or distributors where the Group retains its control over the prepaid cards is assessed as a consignment arrangement. Thus, the Group shall not recogni se revenue upon sale to dealers or distributors but upon utilisation or expiration of prepaid cards. Consequently, the commission arising from the sale of prepaid cards is recogni sed as an expense. In cases where the Group transfers its control over the prepaid cards to dealers, distributors or customers, the Group has concluded that the upfront commission qualifies as a consideration payable to a customer and therefore will be treated as a reduction of the transaction price. Similarly, the Group shall recognise revenue only upon utilisation or expiration of prepaid cards (expiration typically being 1 to 2 years from the issuance date). Commission income When the Group acts in the capacity of an agent rather than as the principal in the transaction, the revenue recognised is the net amount of commission made by the Group. Ancillary service income Revenue from ancillary services is recognised when these services are provided. Significant financing component The Group has decided to recognise interest expense at an appropriate annual interest rates over the contract period and total transaction price including financing component is recognised when equipment is delivered to a customer. Contract assets and liabilities The Group has determined that contract assets and liabilities are to be recognised at the contract level and these are aggregated and presented in the consolidated financial statements. The Group classifies its contract assets and liabilities as current and non -current based on the timing and pattern of flow of economic benefits. Discounts and promotions The Group provides various discounts and promotions to its customers, which may be agreed at inception or provided during the contract term. The impact and accounting of these discounts and promotions vary and may result in recognition of contract assets.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 29 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.5 LEASES A. Definition of leases The Group assesses whether a contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether: a. The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; b. The Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and c. The Group has the right to direct the use of the asset. The Group has the right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what pu rpose the asset is used is predetermined, the Group has the right to direct the use of the asset if either: (i) The Group has the right to operate the asset; or (ii) The Group designed the asset in a way that predetermines how and for what purpose it will be used. B. As a lessee The Group leases several assets including sites, office buildings, shops, vehicles and others. The average lease term is 2 to 20 years. The lease agreements do not impose any covenants, but leased assets may not be used as security for borrowing purposes. The Group recognises a right -of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right -of-use asset is subsequently depreciated using the straight -line method from the commencement date to the earlier of the end of the useful life of the right -of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate over a period of lease term. The incremental borrowing rate is the rate of interest that the Group would have to pay, to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of- use asset, in a similar economic environment. Generally, the Group uses its incremental borrowing rate as the discount rate. The lease term determined by the Group comprises non -cancellable period of lease contracts, periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 30 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.5 LEASES (CONTINUED) Lease payments included in the measurement of the lease liability comprise the following: a. Fixed payments; and b. Lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right -of-use asset, or is recorded in profit or loss if the carrying amount of the right -of- use asset has been reduced to zero. The Group presents right -of-use assets, which do not meet the definition of investment propert ies, separately from other assets and also separately presents lease liabilities, in the consolidated statement of financial position. The Group has elected not to recognise right -of-use assets and lease liabilities for short-term leases of all class of under lying assets that have a lease term of 12 months or less, or those leases which have low -value underlying assets. The Group recognises the lease payments assoc iated with these leases as an expense on a straight-line basis over the lease term. C. As a lessor The Group performs an assessment of each lease on inception. If a lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, it is classified as a finance lease, otherwise, it is classified as an operating l ease. The Group also considers certain indicators, such as whether the lease is for the major part of the economic life of the asset, as a part of its assessment. The operating leases entered into by the Group mainly relate to tower sharing arrangements, which have a lease term of 2 to 15 years. The lessee does not have an option to purchase the asset at the expiry of the lease period. The Group has also entered into finance lease arrangements for optical fibre agreements, which have a lease term of 15 to 20 years. When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub - lease separately. The lease classification of a sub -lease is assessed with reference to the right -of-use asset arising from the head lease, and not with r eference to the underlying asset. If a head lease is a short-term lease to which the Group applies the claimed exemption, the sub -lease is classified as an operating lease. When an arrangement contains lease and non -lease components, the Group applies IFRS 15 Revenue from Contracts with Customers to allocate the consideration in the contract. The Group recognises lease payments received under operating leases as income in the consolidated statement of profit or loss, on a straight line basis over the lease term.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 31 3.6 OTHER GAINS / (LOSSES) Other gains / (losses) represents gains / (losses) generated by the Group that arise from activities outside of the provision for communication services and equipment sales. Key components of other gains / (losses) are recognised as follows: Fair value gains Fair value gains on financial assets at fair value through profit or loss, gains on the remeasurement to fair value of any pre -existing interest in an acquire in a business combination and gains on hedging instruments that are recognised in the consolidated statement of profit or loss. Foreign exchange gain and losses Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis. 3.7 TAXES Some of the subsidiaries, joint ventures and associates are subject to taxes on income in various foreign jurisdictions. Income tax expense represents the sum of current and deferred tax. Current income tax Current income tax and withholding tax for the current year and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the financial reporting year and any adjustment to tax payable in respect of previous years. Deferred income tax Deferred income tax is provided based on temporary differences at the end of the financial reporting year between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences, except: • where the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and • In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary diffe rences will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unutilised tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporar y differences, and the carry forward of unused tax credits and unutilised tax losses can be utilised except: • Where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit or loss nor taxable profit or loss; and • In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred income tax assets are recognised only to the extent that it is probable that the temporary differences will rev erse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised .
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 32 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.7 TAXES (CONTINUED) The carrying amount of deferred income tax assets is reviewed at each end of the financial reporting year and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income t ax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each end of the financial reporting year and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be reco vered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the end of the financial reporting year. Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority. Current and deferred tax for the year Current and deferred income tax are recogni sed in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current deferred tax is also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred income tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination. Tax exposure In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve a series of judgements about future events. New information may become available that causes the Group to change its judg ements regarding the adequacy of existing tax liabilities; such changes to tax liabilities will impact tax expense in the period that such a determination is made. 3.8 FINANCE COSTS Finance costs comprise interest expense on lease liabilities and borrowings, unwinding of the discount on provisions recognised in the consolidated statement of comprehensive income. 3.9 FINANCE INCOME Finance income comprises interest income on funds invested that is recognised in the consolidated statement of profit or loss. Interest income is recognised as it accrues in profit or loss, using effective interest method. 3.10 PROPERTY, PLANT AND EQUIPMENT Recognition and measurement Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Assets in the course of construction are carried at cost, less any impairment. Cost includes expenditure that is directly attributable to the acquisition of the asset. The costs of self - constructed assets include the following: • The cost of materials and direct labor; • Any other costs directly attributable to bringing the assets to a working condition for their intended use;
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 33 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.10 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Recognition and measurement (continued) • When the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing the items and restoring the site on which they are located; and • Capitalised borrowing costs. Cost also includes transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in the consolidated statement of profit or loss. Capital work -in-progress is transferred to the related property, plant and equipment when the construction or installation and related activities necessary to prepare the property and equipment for their intended use have been completed, and the property and equipment are ready for operational use. Transfer to investment properties When the use of property changes from owner -occupied to investment propert ies, the property is reclassified accordingly at the carrying amount on the date of transfer in accordance with cost model specified under IAS 40. Expenditure Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately is capitali sed and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is capitalised only when it increases future economic benefits of the related item of property, plant and equipment. All other expenditure is recognised in the consolidated statement of profit or loss as incurred. Depreciation Items of property, plant and equipment are depreciated on a straight line basis in the consolidated statement of profit or loss over the estimated useful lives of each component. Leased assets are depreciated over the shorter of the lease term and their us eful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not depreciated. Depreciation of these assets commences from the date that they are installed and are ready for use, or in respect of internally constructed assets, from the date that the asset is completed and ready for use. The estimated useful lives of the property, plant and equipment are as follows. Years Buildings 5 – 40 years Exchange and network assets 5 – 25 years Other assets 2 – 10 years The carrying values of property, plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the estimated r ecoverable amount, the assets are written down to their recoverable amount, being the higher of their fair value less costs to sell and their value in use.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 34 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.10 PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Derecognition An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the consolidated statement of profit or loss in the year the asset is derecognised. The asset’s residual values, useful lives and method of depreciation are reviewed, and adjusted if appropriate, at each financial year end. 3.11 GOVERNMENT GRANTS Government grants are recognised only when there is reasonable assurance that the Group will comply with the conditions attached to the grants and that the grants will be received. Grants are recogni sed in the consolidated statement of profit or loss on a systematic basis over the periods in which the Group recognises the related costs as expenses. Grants related to the acquisition, construction or purchase of non -current assets are recogni sed as deferred income in the consolidated statement of financial position and recogni sed in profit or loss on a systematic and rational basis over the useful lives of the related assets, while grants received as compensation for expenses or losses already incurred, or providing immediate financial support with no future related costs, are recognised in profit or loss in the period in which they become receivable.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 35 3.12 INTANGIBLE ASSETS AND GOODWILL Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Internally generated intangible assets, excluding capitalised development costs, are not capitalised and expenditure is reflected in the consolidated statement of profit or loss in the year in which the expenditure is incurred. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible ass et with a finite useful life is reviewed at each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the consolidated statement of profit or loss in the expense category consistent with the nature of the intangible asset. Capital work-in-progress related to intangible assets is initially presented as part of property, plant and equipment. When the construction or installation and related activities necessary to prepare the intangible assets for their intended use and operat ions have been completed, the related assets will be transferred from property, plant and equipment to intangible assets based on the specific contractual rights. Research and development Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in profit or loss as incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitali sed only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group intends to and has sufficient resources to complete development and to use or sell the asset. The expenditure capitali sed includes the cost of materials, direct labor, overhead costs that are directly attributable to preparing the asset for its intended use, and capitali sed borrowing costs. Other development expenditure is recognised in profit or loss as incurred. Capitalised development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses. Indefeasible rights of use “IRU” IRUs correspond to the right to use a portion of the capacity of a terrestrial or submarine transmission cable granted for a fixed period. IRUs are recognised at cost as an asset when the Group has the specific indefeasible right to use an identified porti on of the underlying asset, generally optical fibres or dedicated wavelength bandwidth, and the duration of the right is for the major part of the underlying asset’s economic life. They are amortised on a straight-line basis over the shorter of the expected period of use and the life of the contract which ranges between 10 to 15 years.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 36 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.12 INTANGIBLE ASSETS AND GOODWILL (CONTINUED) Indefeasible rights of use “IRU” (continued) The useful lives of intangible assets are assessed to be either finite or indefinite. Goodwill Goodwill represents the excess of the cost of the acquisition over the fair value of identifiable net assets of the investee at the date of acquisition which is not identifiable to specific assets. Goodwill acquired in a business combination from the acquisition date is allocated to each of the Group’s cash-generating units, or groups of cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Each unit or group of units to which the goodwill is allocated: • represents the lowest level within the Group at which the goodwill is monitored for internal management purposes; and • is not larger than a segment based on the Group’s operating segments as determined in accordance with IFRS 8, Operating Segments. A summary of the useful lives and amortisation methods of Group’s intangible assets other than goodwill are as follows: License costs Customer contracts and related customer relationship Brand / Trade names IRU, software and other intangibles Useful lives Finite (10 – 50 years) Finite (2 – 8 years) Finite (6 – 25 years) Finite (3 – 15 years) Amortisation method used Amortised on a straight line basis over the periods of availability Amortised on a straight line basis over the periods of availability. Amortised on a straight line basis over the periods of availability Amortised on a straight line basis over the periods of availability Internally generated or acquired Acquired Acquired Acquired Acquired 3.13 INVESTMENT PROPERTIES Investment properties are properties held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Invest ment properties are initially measured at cost. Cost includes expenditure that is directly attributable to the acquisition of the investment propert ies. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and amortisation. Depreciation and amortisation of investment properties are computed using the straight line method over the estimated useful lives (EUL) of assets of twenty (20) years. When the use of a property changes such that it is reclassified as property and equipment, its net book value at the date of reclassification becomes its cost for subsequent accounting. Investment properties are derecognised when either they have been disposed of or when the investment properties is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment propert ies are recognised in the consolidated statement of profit or loss in the year of retirement or disposal .
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 37 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.14 FAIR VALUE MEASUREMENT For measurement and disclosure purposes, the Group determines the fair value of an asset or liability at initial measurement or at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an or derly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible to the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non -financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximi sing the use of relevant observable inputs and minimising the use of unobservable inputs. Fair value for measurement and/ or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share -based payment transactions that are within the scope of IFRS 2; leasing transactions that are within the scope of IFRS 16 and measurements that have some similarities to fair value, but are not fair value, such as net realisable value in IAS 2 or value in use in IAS 36. All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categori sed within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recogni sed in the consolidated financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re - assessing categori sation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting date. 3.15 FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognised in the Group’s consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially m easured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or d educted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in the consolidated statement of profit or loss.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 38 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.16 FINANCIAL ASSETS All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. All recognised financial assets are subsequently measured in their entirety at amortised cost or fair value through other comprehensive or fair value through profit and loss, depending on the classification of the financial assets. Classification of financial assets (i) Debt instruments designated at amortised cost Debt instruments that meet the following conditions are measured subsequently at amortised cost: • The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost and effective interest rate method The amortised cost of a financial asset is the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus the cumulative amortisation using the effective interest method of any difference between that initia l amount and the maturity amount, adjusted for any loss allowance. The gross carrying amount of a financial asset is the amortised cost of a financial asset before adjusting for any loss allowance. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. Interest income is recognised using the effective interest method for debt instruments measured subsequently at amortised cost. For financial instruments other than purchased or originated credit - impaired financial assets, interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently become credit - impaired. For financial assets that have subsequently become credit -impaired, interest income is recognised by applying the effective interest rate to the amortised cost of the financial asset. If, in subsequent reporting periods, the credit risk on the credit -impaired financial instrument improves so that the financial asset is no longer credit -impaired, i nterest income is recognised by applying the effective interest rate to the gross carrying amount of the financial asset. (ii) Equity instruments designated as at FVTOCI On initial recognition, the Group may make an irrevocable election (on an instrument -by-instrument basis) to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognised by an acquirer in a business combination. Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and acc umulated in the fair value and other reserves. The cumulative gain or loss will not be reclassified to consolidated statement of profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings. Dividends on these investments in equity instruments are recognised in consolidated statement of profit or loss unless the dividends clearly represent a recovery of part of the cost of the investment.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 39 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.16 FINANCIAL ASSETS (CONTINUED) Classification of financial assets (continued) (iii) Financial assets at FVTPL Financial assets that do not meet the criteria for being measured at amortised cost or FVTOCI are measured at FVTPL. Specifically: • Investments in equity instruments are classified as at FVTPL, unless the Group designates an equity investment that is neither held for trading nor a contingent consideration arising from a business combination as at FVTOCI on initial recognition. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognised in the consolidated statement of profit or loss. Foreign exchange gains and losses The carrying amount of financial assets that are denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of each reporting period. Specifically: • for financial assets measured at amortised cost that are not part of a designated hedging relationship, exchange differences are recognised in profit or loss in the ‘Other (Losses) / Gains – net’ line item (note 10); • for financial assets measured at FVTPL that are not part of a designated hedging relationship, exchange differences are recognised in profit or loss in the ‘other income – net’ line item as part of the fair value gain or loss; and • for equity instruments measured at FVTOCI, exchange differences are recognised in other comprehensive income in the investments revaluation reserve. Impairment of financial assets The Group recognises a loss allowance for expected credit losses (“ECL”) on investments in debt instruments that are measured at amortised cost or at FVTOCI, trade and other receivables, contract assets, as well as on financial guarantee contracts. The amo unt of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group recognises lifetime ECL for trade and other receivables and contract assets. The expected credit losses on these financial assets are estimated using a provision matrix based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. The Group has identified the GDP and the unemployment rate of the countries in which it sells its goods and services to be the most relevant factors. For all other financial instruments, the Group recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12 -month ECL. The assessment of whether lifetime ECL should be recognised is based on significant increases in the likelihood or risk of a default occu rring since initial recognition. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 40 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.16 FINANCIAL ASSETS (CONTINUED) Impairment of financial assets (continued) (i) Significant increase in credit risk In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurri ng on the financial instrument as at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward -looking information that is available without undue cost or effort. For financial guarantee contracts, the date that the Group becomes a party to the irrevocable commitment is considered to be the date of initial recognition for the purposes of assessing the financial instrument for impairment. In assessing whether there has been a significant increase in the credit risk since initial recognition of a financial guarantee contracts, the Group considers the changes in the risk that the specified debtor will default on the contract. The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due. (ii) Definition of default The Group employs flowrate models to analyse the historical data collected and generate estimates of probability of default (“PD”) of exposures with the passage of time. This analysis includes the identification for any changes in default rates and changes in key macro-economic factors across various geographies of the Group. For trade receivables, the average credit terms are 30 -90 days. (iii) Credit-impaired financial assets A financial asset is credit -impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: (a) significant financial difficulty of the issuer or the borrower; (b) a breach of contract, such as a default or past due event; (c) the lender of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider; (d) it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; (e) the disappearance of an active market for that financial asset because of financial difficulties ; or (f) when the financial asset is 90 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. (iv) Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given default and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information. As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date; for financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, t ogether with any additional amounts expected to be drawn down in the future by default date determined based on historical trend, the Group’s understanding of the specific future financing needs of the debtors, and other relevant forward-looking information.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 41 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.16 FINANCIAL ASSETS (CONTINUED) Impairment of financial assets (continued) (iv) Measurement and recognition of expected credit losses (continued) For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the original effective interest rate. For a financial guarantee contract, as the Group is required to make payments only in the event of a default by the debtor in accordance with the terms of the instrument that is guaranteed, the expected loss allowance is the expected payments to reimburse the holder for a credit loss that it incurs less any amounts that the Group expects to receive from the holder, the debtor or any other party. The Group recognises an impairment gain or loss in consolidated statement of profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in equity instruments that are measured at FVTOCI, for which the loss allowance is recognised in other comprehensive income and accumulated in the fair value and other reserves, and does not reduce the carrying amount of the financial asset in the consolidated statement of financial position. (v) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery. Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Grou p neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received. Modification of financial assets The Group sometimes renegotiates or otherwise modifies the contractual terms of the financial assets. The Group assesses whether the modification of contractual cash flows is substantial considering, among others, the following factors: any new contractual terms that substantially affect the risk profile of the asset (e.g. profit share or equity -based return), significant change in interest rate, change in the currency denomination of the instrument, new collateral or credit enhancement that significantly affects the credit risk associated with the asset or a significant extension of a loan when the borrower is not in financial difficulties. If the modified terms are substantially different, the rights to cash flows from the original asset expire and the Group derecognises the original financial asset and recognises a new asset at its fair value. The date of renegotiation is considered to be t he date of initial recognition for subsequent impairment calculation purposes, including determining whether a significant increase event has occurred. The Group also assesses whether the new loan or debt instrument meets the solely payments of principal and interest criterion. Any difference between the carrying amount of the original asset derecognised and fair value of the new substantially modified asset is recognised in profit or loss, unless the substance of the difference is attributed to a capital transaction with owners.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 42 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.16 FINANCIAL ASSETS (CONTINUED) Modification of financial assets (continued) In a situation where the renegotiation was driven by financial difficulties of the counterparty and inability to make the originally agreed payments, the Group compares the original and revised expected cash flows to assets whether the risks and rewards of the asset are substantially different as a result of the contractual modification. If the risks and rewards do not change, the modified asset is not substantially different from the original asset and the modification does not result in derecognition. The Group recalculates the gross carrying amount by discounting the modified contractual cash flows by the original effective interest rate and recognises a modification gain or loss in profit or loss. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in the consolidated statement of profit or loss. In contrast, on der ecognition of an investment in equity instrument which the Group has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the fair value and other reserves is not reclassified to consolidated statement profit or loss, but is transferred to retained earnings. A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is derecognised where: • The contractual rights to receive cash flows from the asset have expired ; • The Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass-through’ arrangement; or • The Group has transferred its rights to receive cash flows from the asset and either (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 3.17 FINANCIAL LIABILITIES All financial liabilities are measured either at FVTPL or at amortised cost using the effective interest method. Financial liabilities at FVTPL Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on changes in fair value recognised in the consolidated statement of profit or loss to the extent that they are not part of a designated hedging relationship. The net gain or loss recognised in the consolidated statement profit or loss incorporates any interest paid on the financial liability. However, for financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is recognised in consolidated statement of comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in the consolidated statement of profit or loss. The remaining amount of change in the fair value of liability is recognised in the consolidated statement of profit or loss. Changes in fair value attributable to a financial liability’s credit risk that are recognised in the consolidated statement of comprehensive income are not subsequently reclassified to the consolidated statement of profit or loss; instead, they are transferred to retained earnings upon derecognition of the financial liability. Gains or losses on financial guarantee contracts issued by the Group that are designated by the Group as at FVTPL are recognised in the consolidated statement of profit or loss.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 43 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.17 FINANCIAL LIABILITIES (CONTINUED) Financial liabilities measured at amortised cost Financial liabilities, that are not designated as at FVTPL, are measured subsequently at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability. Financial guarantee contract liabilities A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument. Financial guarantee contract liabilities are measured initially at their fair values and, if not designated as at FVTPL and do not arise from a transfer of an asset, are measured subsequently at the higher of: • The amount of the loss allowance determined in accordance with IFRS 9 (see financial assets above); and • The amount recognised initially less, where appropriate, cumulative amortisation recognised in accordance with the revenue recognition policies set out above. Foreign exchange gains and losses For financial liabilities that are denominated in a foreign currency and are measured at amortised cost at the end of each reporting period, the foreign exchange gains and losses are determined based on the amortised cost of the instruments. These foreign exchange gains and losses are recognised in the ‘Other (Losses) / Gains – net’ line item in profit or loss ( note 10) for financial liabilities that are not part of a designated hedging relationship. For those which are designated as a hedging instrument for a hedge of foreign currency risk foreign exchange gains and losses are recognised in other comprehensive income and accumulated in a separate component of equity. The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. For financial liabilities that are measured as at FVTPL, the foreign exchange component forms part of the fair value gains or losses. Derecognition of financial liabilities The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable i s recognised in the consolidated statement of profit or loss. Derivative financial instruments Derivatives are recognised initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in profit or loss immediately unless t he derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship. A derivative with a positive fair value is recognised as a financial asset wh ereas a derivative with a negative fair value is recognised as a financial liability.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 44 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.18 SHARE CAPITAL Ordinary shares Ordinary shares are classified as equity. The bonus shares and rights issued during the year are shown as an addition to the share capital. Issue of bonus shares are deducted from the accumulated retained earnings of the Group. Any share premium on rights issues are accounted for in compliance with local statutory requirements. Dividend on ordinary share capital Dividend distributions to the Group’s shareholders are recogni sed as a liability in the consolidated financial statements in the period in which the dividends are approved by the shareholders. Dividends for the year that are approved after the reporting date of the consolidated financial statements are considered as an event after the reporting date. 3.19 EARNINGS PER SHARE The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares outstan ding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which comprise convertible notes and share options granted to employees, if any. Where the effect of the assumed conversion of the convertible notes and the exercise of all outstanding options have an anti-dilutive effect, basic and diluted EPS are stated at the same amount. 3.20 INVENTORIES Inventories are stated at the lower of cost and net realisable value. The cost of inventories is based on the weighted average principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is based on estimated selling price less any further costs expected to be incurred on completion and disposal. 3.21 PROVISIONS Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, and it is probable that the Group will be required to settle that obligation. Provisions are measured as a best estimate of the expenditure required to settle the obligation at the reporting date, and are discounted to present value where the effect is material. Decommissioning liability The Group recognises a decommissioning liability where it has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of obligation can be made. The Group records full provision for the future costs of decommissioning for network and other assets. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related network and other assets to the extent that it was incurred by the development/ construction.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 45 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.21 PROVISIONS (CONTINUED) Decommissioning liability (continued) Changes in the estimated timing or cost of decommissioning are dealt with prospectively by recording an adjustment to the provision and a corresponding adjustment to network and other assets. Any reduction in the decommissioning liability and, therefore, a ny deduction from the asset to which it relates, may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is taken immediately to the consolidated statement of profit or loss. If the change in estimate results in an increase in the decommissioning liability and, therefore, an addition to the carrying value of the asset, the Group considers whether this is an indication of impairment of the asset as a whole, and if so, tests for impairment. If, the estimate for the revised value of network and other assets net of decommissioning provision exceeds the recoverable value, that portion of the increase is charged directly to expense. Over time, the discounted liability is increased for the change in present value based on the discount rate that reflects current market assessments and the risks specific to the liability. The periodic unwinding of the discount is recognised in the consolidated statement of profit or loss as a finance cost. End of service benefits The Group provides end of service benefits to its employees. The entitlement to these benefits is based upon the employees’ final salary and length of service, subject to the completion of a minimum service period, calculated under the provisions of the La bour Law and is payable upon resignation or termination of the employee. The expected costs of these benefits are accrued over the period of employment. Pensions and other post-employment benefits Pension costs under the Group’s defined benefit pension plans are determined by periodic actuarial calculation using the projected -unit-credit method and applying the assumptions on discount rate, expected return on plan assets and annual rate of increase in compensation. The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognised asset is limited to the present value of eco nomic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements. Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensi ve income. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then -net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in the consolidated statement of profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the s ettlement of a defined benefit plan when the settlement occurs.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 46 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.21 PROVISIONS (CONTINUED) Pensions and other post-employment benefits (continued) With respect to the Qatari nationals, the Company makes contributions to Qatar Retirement and Pension Authority as a percentage of the employees’ salaries in accordance with the requirements of respective local laws pertaining to retirement and pensions. T he share of contributions to these schemes, which are defined contribution schemes under IAS – 19 'Employee Benefits' are charged to the consolidated statement of profit or loss. Long-term incentive plan The Group provides long term incentive points (the “benefit”) to its employees under the long term incentive plan. The entitlement to these benefits is based on employee performance and the overall performance of the Group, subject to fulfilling certain co nditions (“vesting conditions”) under documented plan and is payable upon end of the vesting period (the “exercise date”). The benefit is linked to the performance of employees and the Group, and the Group proportionately recognises the liability against t hese benefits over the vesting period through the consolidated statement of profit or loss, until the employees become unconditionally entitled to the benefit. The fair value of the liability is reassessed on each reporting date and any changes in the fair value of the benefit are recognised through the consolidated statement of profit or loss. Once the benefit is settled in cash at the exercise date, the liability is derecognised. The amount of cash settlement is determined based on a number of factors including the number of incentive points awarded, the Group’s operating performance based on p redetermined targets and the Group’s share price performance over the vesting period. On breach of the vesting conditions, the liability is derecognised through the consolidated statement of profit or loss. 3.22 FOREIGN CURRENCY TRANSACTIONS Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded by the Group entities at th eir respective functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency spot rate of exchange ruling at the end of the financial reporting year. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non -monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Foreign currency differences arising on retranslation are recognised in the consolidated statement of profit or loss, except for differences arising on the retranslation of fair value through other comprehensive income which are recognised in other comprehensive income. Translation of foreign operations The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to Qatari riyals at exchange rates at the reporting date. The income and expenses of foreign operations are translated to Qatari Riyals at exchange rates at the dates of the transactions. Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation reserve in equity. However, if the operation is a non -wholly-owned subsidiary, then the relevant proportionate share of the transla tion difference is allocated to the non - controlling interests. When a foreign operation is disposed of such that control or significant influence is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to the consolidated statement of profit or loss as part of the gain or loss on disposal.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 47 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.22 FOREIGN CURRENCY TRANSACTIONS (CONTINUED) Translation of foreign operations (continued) When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non - controlling interests. When the Group disposes of only p art of its investment in an associate that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to consolidated statement of profit or loss. When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised in other comprehensive income, and presented in the translation reserve in equity. 3.23 IMPAIRMENT OF NON-FINANCIAL ASSETS The carrying amounts of the Group’s non-financial assets, other than inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre -tax discoun t rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recogni sed in the consolidated statement of profit or loss. Impairment losses recogni sed in respect of cash -generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis. Impairment losses r ecognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. 3.24 SEGMENT REPORTING Segment results that are reported to the Group’s Chief Operating Decision Maker (“CODM”) include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Financial information on operating segments is presented in note 45 to the consolidated financial statements. 3.25 EVENTS AFTER THE REPORTING DATE The consolidated financial statements are adjusted to reflect events that occurred between the reporting date and the date when the consolidated financial statements are authorised for issue, provided they give evidence of conditions that existed at the re porting date. Any post year -end events that are non - adjusting events are discussed in the consolidated financial statements when material.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 48 3. MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.26 ACCOUNTING FOR LEVIES IFRIC 21 governs the accounting for levies that do not fall within the scope of IAS 12 “Income Taxes”. The Group makes payments to certain regulatory bodies that are based on certain percentages of revenue from regulated activities. As such, management has assessed these payments to be in the scope of IFRIC 21, rather than IAS 12 and treated these payments as ex penses in the statement of profit or loss. 4. REVENUE The Group derives its revenue from contracts with customers for the transfer of goods and services over time and at a point in time in the following revenue streams. The disclosure of revenue by streams is consistent with the revenue information that is disclosed for each reportable segment under IFRS 8 (see note 45). 2025 2024 QR.’000 QR.’000 Revenue from rendering of services 22,982,068 21,961,315 Sale of telecommunication equipment 1,546,844 1,558,106 Equipment rental revenue 74,982 75,396 24,603,894 23,594,817 2025 2024 QR.’000 QR.’000 At a point in time 1,546,844 1,558,106 Overtime 23,057,050 22,036,711 24,603,894 23,594,817 5. OTHER INCOME 2025 2024 QR.’000 QR.’000 Dividend income 5,246 10,153 Rental income 37,520 36,512 Miscellaneous income 91,732 188,270 134,498 234,935 6. NETWORK, INTERCONNECT AND OTHER OPERATING EXPENSES 2025 2024 QR.’000 QR.’000 Outpayments and interconnect charges 1,460,068 1,432,129 Regulatory and related fees 1,985,403 1,828,807 Rentals and utilities 584,994 643,446 Network operation and maintenance 2,135,775 1,957,199 Cost of equipment sold and other services 3,058,585 3,000,624 Marketing costs and sponsorship 401,344 382,107 Commission on cards 766,508 710,295 Legal and professional fees 144,311 184,143 Provision/(reversal of provision) for obsolete and slow-moving inventories 4,669 (650) Other expenses 626,061 592,006 11,167,718 10,730,106
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 49 6. NETWORK, INTERCONNECT AND OTHER OPERATING EXPENSES (CONTINUED) Fees for audit services amounted to QR. 6,847 thousand (2024: QR. 6,737 thousand) and fees for non- audit services amounted to QR. 3,481 thousand (2024: QR. 3,684 thousand). 7. EMPLOYEE SALARIES AND ASSOCIATED COSTS As part of a strategic transformation programme, an organisational restructuring was implemented during 2025 at one of the Group’s operating companies. The resulting costs, amounting to QR. 151 million, were recognised in the consolidated financial statements within employee salaries and associated costs. 8. DEPRECIATION AND AMORTISATION 2025 2024 QR.’000 QR.’000 Depreciation of property, plant and equipment 2,792,228 2,668,591 Depreciation of investment properties 6,339 12,783 Amortisation of intangible assets 1,032,065 1,005,973 Amortisation of right-of-use assets 673,120 630,229 4,503,752 4,317,576 9. FINANCE COSTS AND FINANCE INCOME 2025 2024 QR.’000 QR.’000 Finance costs Interest on loans and borrowings 609,289 523,298 Amortisation of deferred financing costs (Note 30) 23,823 23,730 Interest on lease liabilities 166,611 201,973 Other finance costs 31,803 30,140 Total finance costs 831,526 779,141 Finance income Interest income* 583,397 504,414 Total finance income 583,397 504,414 * The interest income mainly comprises interest earned on term deposits. 10. OTHER GAINS/(LOSSES) – NET 2025 2024 QR.’000 QR.’000 Gain on sale of non-financial assets 29,789 45,504 Change in fair value of derivatives – net 625 (1,079) Unrealised gain on equity investment at FVTPL 41,557 19,580 Foreign currency gain/(loss) - net 39,025 (116,285) Gain on deconsolidation of a subsidiary (i) - 117,895 Charges for penalty and fines - (306,495) Miscellaneous gain/(loss) – net 121,184 (193,427) 232,180 (434,307) (i) During the previous year, the Group completed the sale of 100 percent equity of Ooredoo Asian Investments Pte Ltd. (Singapore) (“OAI”), the parent company that owns 100 percent of Ooredoo Myanmar Ltd. (“OML”), and 100 percent of Ooredoo Myanmar Fintech Ltd. (“OMFL”) for a consideration of QR. 400,565 thousand which will be paid over 5 years in instalments.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 50 10. OTHER GAINS/(LOSSES) – NET (CONTINUED) Below is the carrying amounts of Ooredoo Myanmar's assets and liabilities as at the date of sale: QR.’000 Property, plant and equipment 249,779 Intangible assets and goodwill 578,875 Right-of-use assets 225,302 Inventories 1,273 Trade and other receivables 43,231 Bank balances and cash 25,732 Total Assets 1,124,192 Lease liabilities 1,160,880 Other non-current liabilities 86,896 Trade and other payables 179,990 Deferred income 61,389 Total Liabilities 1,489,155 Carrying amount of net liability derecognised (364,963) Below is the calculation of the gain on the deconsolidation: QR.’000 Consideration: Cash* 100,141 Fair value of consideration receivable 199,273 Total disposal consideration 299,414 Carrying amount of net liability derecognised 364,963 Gain on sale before the associated expenses and reclassification of foreign currency translation reserve 664,377 Recycling of foreign currency translation reserve (495,501) Associated expenses (50,981) Gain on disposal 117,895 * The cash consideration is presented net of the balance disposed as a result of the transaction amounting to QR. 25,732 thousand. As such, the proceeds from disposal of subsidiary amounts to QR. 74,409 thousand is presented in the consolidated statement of cash flows.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 51 11. ROYALTY FEES 2025 2024 QR.’000 QR.’000 Royalty 196,769 229,825 In accordance with the terms of a license granted to Omani Qatari Telecommunications Company S.A.O.G. to operate telecommunication services in the Sultanate of Oman, royalty is payable to the Government of the Sultanate of Oman, effective from March 2005. The royalty is calculated based on a percentage of net revenue (after deducting specified interconnection expenses to local operators) and is accounted for under IFRIC 21. In August 2025, the Telecommunications Regulatory Authority (TRA) issued a new guideline unifying the royalty rate for both fixed and mobile services at 10%, reducing the mobile royalty rate from 12% to 10% effective from 1 January 2025 (2024: mobile 12%), while maintaining the fixed line royalty at 10%. 12. BASIC AND DILUTED EARNINGS PER SHARE Basic earnings per share is calculated by dividing the earnings for the period attributable to the shareholders of the parent by the weighted average number of shares outstanding during the year. There were no potentially dilutive shares outstanding at any time during the year and, therefore, the dilutive earnings per share is equal to the basic earnings per share. 2025 2024 Profit for the year attributable to shareholders of the parent (QR.’000) 3,864,564 3,435,893 Weighted average number of shares (In ’000) 3,203,200 3,203,200 Basic and diluted earnings per share (QR.) 1.21 1.07
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 52 13. PROPERTY, PLANT AND EQUIPMENT Land and buildings Exchange and networks assets Other assets* Capital work in progress Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Cost At 1 January 2024 3,188,645 41,870,149 5,834,188 1,450,003 52,342,985 Deconsolidation of a subsidiary (15,771) (1,508,499) (393,395) (5,339) (1,923,004) Additions 29,467 1,082,935 189,886 1,804,874 3,107,162 Transfers 117,322 1,158,908 192,300 (1,468,530) - Disposals (42,244) (651,813) (17,428) (1,900) (713,385) Reclassification (61) - 67 (85,577) (85,571) Exchange adjustment (5,744) (205,546) (17,201) (17,157) (245,648) At 31 December 2024 3,271,614 41,746,134 5,788,417 1,676,374 52,482,539 Additions 23,416 1,933,533 158,723 2,360,606 4,476,278 Classified as held for sale (57,304) (467,579) (65,919) (27,159) (617,961) Transfers 78,766 1,568,805 291,538 (1,939,109) - Disposals (20,767) (1,210,763) (74,091) (742) (1,306,363) Reclassification 235 2,212 4,483 (193,831) (186,901) Exchange adjustment 20,019 736,482 64,642 39,597 860,740 At 31 December 2025 3,315,979 44,308,824 6,167,793 1,915,736 55,708,332 Accumulated depreciation At 1 January 2024 1,661,169 31,907,808 4,868,251 - 38,437,228 Deconsolidation of a subsidiary (14,246) (1,293,379) (365,600) - (1,673,225) Provided during the year 117,681 2,140,842 410,068 - 2,668,591 Impairment during the year - 20,518 (1,085) - 19,433 Disposals (7,663) (631,143) (24,367) - (663,173) Exchange adjustment (7,065) (169,134) (16,047) - (192,246) At 31 December 2024 1,749,876 31,975,512 4,871,220 - 38,596,608 Provided during the year 91,481 2,289,376 411,371 - 2,792,228 Classified as held for sale (57,173) (268,201) (46,322) - (371,696) Impairment during the year 3,318 8,289 - - 11,607 Disposals (14,271) (1,190,545) (63,061) - (1,267,877) Reclassification - 224 4 - 228 Exchange adjustment 16,189 584,727 54,539 - 655,455 At 31 December 2025 1,789,420 33,399,382 5,227,751 - 40,416,553 Carrying value At 31 December 2025 1,526,559 10,909,442 940,042 1,915,736 15,291,779 At 31 December 2024 1,521,738 9,770,622 917,197 1,676,374 13,885,931 * Other assets include furniture, fixtures, computers and tools.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 53 14. INTANGIBLE ASSETS AND GOODWILL Licence costs Goodwill Customer contracts and related customer relationship Trade names Software and other intangibles Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Cost At 1 January 2024 25,125,521 5,725,389 105,567 905,844 4,436,421 36,298,742 Deconsolidation of a subsidiary (2,133,842) - - - (14,345) (2,148,187) Additions 27,389 - - - 187,436 214,825 Disposals - - - - (343,773) (343,773) Reclassification - - - - 85,571 85,571 Exchange adjustment (136,239) (76,079) (2,570) (4,955) (12,461) (232,304) At 31 December 2024 22,882,829 5,649,310 102,997 900,889 4,338,849 33,874,874 Additions 1,200,718 - - - 144,707 1,345,425 Disposals - - - - (50,011) (50,011) Reclassification - - - - 186,901 186,901 Exchange adjustment 236,782 193,483 7,208 10,498 47,311 495,282 At 31 December 2025 24,320,329 5,842,793 110,205 911,387 4,667,757 35,852,471
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 54 14. INTANGIBLE ASSETS AND GOODWILL (CONTINUED) License costs Goodwill Customer contracts and related customer relationship Trade names Software and other intangibles Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Accumulated amortisation and impairment losses At 1 January 2024 15,149,087 1,142,618 105,567 905,844 3,481,097 20,784,213 Deconsolidation of a subsidiary (1,555,177) - - - (14,135) (1,569,312) Amortisation 687,005 - - - 318,968 1,005,973 Impairment during the year - 110,973 - - - 110,973 Disposals - - - - (343,179) (343,179) Exchange adjustment (69,244) (16,618) (2,570) (4,955) (11,322) (104,709) At 31 December 2024 14,211,671 1,236,973 102,997 900,889 3,431,429 19,883,959 Amortisation 688,985 - - - 343,080 1,032,065 Impairment during the year - 119,768 - - - 119,768 Disposals - - - - (48,500) (48,500) Reclassification - - - - (228) (228) Exchange adjustment 153,384 52,163 7,208 10,498 43,376 266,629 At 31 December 2025 15,054,040 1,408,904 110,205 911,387 3,769,157 21,253,693 Carrying value At 31 December 2025 9,266,289 4,433,889 - - 898,600 14,598,778 At 31 December 2024 8,671,158 4,412,337 - - 907,420 13,990,915
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 55 14. INTANGIBLE ASSETS AND GOODWILL (CONTINUED) i Impairment testing of goodwill Goodwill acquired through business combinations has been allocated to individual cash generating units (CGUs) for impairment testing as follows: Carrying value Carrying value 2025 2024 QR.’000 QR.’000 Cash generating units Ooredoo Kuwait 578,964 577,815 Ooredoo Algeria 1,785,428 1,781,883 Ooredoo Tunisia (Note 28) 1,632,872 1,616,072 Asiacell Communications P.J.S.C. 322,478 322,478 Others 114,147 114,089 4,433,889 4,412,337 Movement in the Goodwill carrying value is driven by impairment and exchange adjustments during the year. The Goodwill was tested for impairment as at 31 December 2025. The recoverable amount of the CGUs was determined based on value in use calculated using cash flows projections by management covering a period of five years. ii Key Assumptions used in value in use calculations Key Assumptions The principal assumptions used to determine value-in-use include long-term cash flows, discount rates, terminal value growth rate estimates, earnings before interest, taxes, depreciation, and amorti sation (“EBITDA”) growth rate and CAPEX. The assumptions are constructed based upon historic experience and management’s best estimate of future trends and performance and take into account anticipated efficiency improvements over the forecasted period. Discount rates Discount rates reflect management’s estimate of the risks specific to each CGU. Discount rates are based on a weighted average cost of capital for each CGU and ranged from 9.1% to 18.0% (2024: 10.1% to 18.1%) In determining the appropriate discount rates for each CGU, the yield local market ten -year government bond is used, where available. If unavailable, yield on a ten -year US Treasury bond and specific risk factors for each country has been taken into consideration. Terminal value growth rate The business plans take into account local market considerations such as the revenues and costs associated with future customer growth, the impact of local market competition and consideration of the local macro -economic and political trading environment. The growth rate does not exceed the average long-term growth rate for the relevant markets and it ranges from 3.3% to 5.0% (2024: 4.3% to 6.0%). Earnings Before Interest, Taxes, Depreciation, and Amortisation The cash flow forecasts for budgeted EBITDA are derived from revenue, and the related cost of sales and operating expenses. The forecasts are mainly based on past experience and management’s best estimate of future trends in the market including number of customers, penetrations, average revenue per users, new products and services.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 56 14. INTANGIBLE ASSETS AND GOODWILL (CONTINUED) ii Key Assumptions used in value in use calculations (continued) Budgeted Capex The cash flow forecasts for budgeted capital expenditure are based on past experience and include the ongoing capital expenditure required to continue rolling out networks in emerging and frontier markets, providing enhanced voice and data products and services, and meeting the population coverage requirements of certain licenses of the Group. Capital expenditure includes cash outflows for the purchase of property, plant and equipment and other intangible assets. Long-term cash flows and working capital estimates The Group prepares cash flow forecasts for the next five years, derived from the most recent annual business plan approved by the Board of Directors. At 31 December 2025, the discount rate used for Ooredoo Algeria was 12.48% (2024: 14.67%) and the terminal growth rate was 4.0% (2024: 6.0%). Management considers that changes to the discount rate and the terminal growth rate could cause the carrying value of the following CGUs to exceed their recoverable amount. If the discount rate is increased by 5.3% pp (2024: 7.6% pp) or if the terminal growth rate is decreased by 8.7% pp (2024: 14.1% pp) with all other variables held constant, the recoverable amount would equal the carrying value. At 31 December 202 5, if the discount rate used for Ooredoo Tunisia had increased by 0.5%pp with all other variables held constant, the additional impairment charge would have been QR. 166,785 thousand and decrease by 0.5%pp will not result in an impairment . If the terminal growth rate is decreased by 0.5% pp with all other variables held constant, the additional impairment charge would have been QR. 130,125 thousand and increase by 0.5%pp will not result in an impairment. At 31 December 202 5, the discount rate used for Ooredoo Kuwait was 9.09% (2024: 10.08%) and the terminal growth rate was 3.3% (2024: 4.3%). Management considers that changes to the discount rate and the terminal growth rate could cause the carrying value of the CGU to exceed their recoverable amount. If the discount rate is increased by 5.8% pp (2024: 3.9% pp) or if the terminal growth rate is decreased by 8.8% pp (2024: 5.5% pp) with all other variables held constant, the recoverable amount would equal the carrying value. At 31 December 202 5, the discount rate used for Asiacell Communications PJSC was 12.03% (2024: 14.3%) and the terminal growth rate was 5.0% (2024: 5.5%). Management considers that any reasonable changes to the discount rate and the terminal growth rate will not cause the carrying value of the CGUs to exceed the recoverable amount. The calculation of the recoverable amount of the remaining CGUs include high headroom and management has assessed that any reasonable possible change in key assumptions in relation to these CGUs would not result in an impairment loss.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 57 15. LEASES Right of use assets Land and buildings Exchange and network assets Other assets Indefeasible rights-of-use (IRU) Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Cost At 1 January 2024 888,840 4,922,930 222,373 83,817 6,117,960 Deconsolidation of a subsidiary (56,519) (848,324) - - (904,843) Additions 152,788 741,685 86,558 3,482 984,513 Reduction on early termination 7,597 (139,402) (5,449) - (137,254) Exchange adjustment (3,004) (23,954) (2,458) (2,603) (32,019) At 31 December 2024 989,702 4,652,935 301,024 84,696 6,028,357 Additions 316,991 743,481 101,714 6,813 1,168,999 Classified as held for sale - (509,017) - - (509,017) Reduction on early termination (82,342) (87,547) (19,126) (1,998) (191,013) Exchange adjustment (16,744) 63,667 14,055 7,675 68,653 At 31 December 2025 1,207,607 4,863,519 397,667 97,186 6,565,979 Accumulated amortisation At 1 January 2024 620,225 2,601,228 58,229 47,792 3,327,474 Deconsolidation of a subsidiary (35,072) (644,469) - - (679,541) Provided during the year 119,719 454,431 48,159 7,920 630,229 Reduction on early termination (23,456) (32,151) (6,201) - (61,808) Exchange adjustment (1,520) (13,352) (1,312) (1,568) (17,752) At 31 December 2024 679,896 2,365,687 98,875 54,144 3,198,602 Provided during the year 130,841 482,475 53,948 5,856 673,120 Classified as held for sale - (340,539) - - (340,539) Reduction on early termination (77,186) (57,435) (18,564) - (153,185) Exchange adjustment (23,303) 34,957 5,585 4,746 21,985 At 31 December 2025 710,248 2,485,145 139,844 64,746 3,399,983 Carrying value At 31 December 2025 497,359 2,378,374 257,823 32,440 3,165,996 At 31 December 2024 309,806 2,287,248 202,149 30,552 2,829,755 Following the election of the Group not to recogni se right-of-use assets and lease liabilities for short - term and low-value leases, QR 8,715 thousand (2024: QR. 22,995 thousand) and QR. 4,245 thousand (2024: QR. 2,923 thousand), respectively, were recogni sed as expenses during the year. Moreover, variable lease payments which were recogni sed as expenses during 202 5 amounted to QR. 22,547 thousand (2024: QR. 22,400 thousand).
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 58 15. LEASES (CONTINUED) Lease liabilities: 2025 2024 QR.’000 QR.’000 At January 1 2,879,640 3,746,267 Deconsolidation of a subsidiary - (1,160,880) Additions during the year 1,168,999 984,513 Classified as held for sale (163,321) - Interest expense on lease liability 166,611 201,973 Principal element of lease payments (681,181) (701,591) Payment of interest portion of lease liability (165,842) (153,048) Reduction on early termination (40,944) (95,359) Exchange adjustments 73,644 57,765 At 31 December 3,237,606 2,879,640 Non-current portion 2,664,708 2,358,067 Current portion 572,898 521,573 3,237,606 2,879,640 The Group does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored by the Group’s treasury function. 2025 2024 QR.’000 QR.’000 Maturity analysis Not later than 1 year 727,661 658,337 Later than 1 year and not later than 5 years 2,070,365 1,880,702 Later than 5 years 1,514,729 1,062,814 Less: unearned finance cost (1,075,149) (722,213) 3,237,606 2,879,640 16. INVESTMENT PROPERTIES 2025 2024 QR.’000 QR.’000 Cost At 1 January 352,149 352,149 Disposals (25,469) - At 31 December 326,680 352,149 Accumulated depreciation At 1 January 246,022 233,239 Provided during the year 6,339 12,783 Relating to disposals (12,119) - At 31 December 240,242 246,022 Carrying value At 31 December 86,438 106,127 Investment properties comprise the portion of the Group’s headquarters building rented to a related party, in addition to properties not occupied by the Group and currently held for undetermined use. There was a valuation exercise performed by an external valuer, independent valuers not connected with the Group. The valuation conforms to International Valuation Standards. Management believe that the fair value investment property is approximately QR. 383,174 thousand (2024: QR. 340,800 thousand), which is higher than the carrying value at reporting date. The fair value was determined based on the market comparable approach that reflects recent transaction prices for similar properties/other methods. The fair value hierarchy for valuation of investment property is categorised under level 2.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 59 16. INVESTMENT PROPERTIES (CONTINUED) The property rental income earned by the Group from its investment propert ies, all of which is leased out under operating leases, amounted to QR. 37,520 thousand (2024: QR. 36,512 thousand). 17. INVESTMENT IN ASSOCIATES AND JOINT VENTURES The Group has the following investment in associates and joint ventures: Associate / Joint Venture companies Principal activity Classification Country of incorporation Effective ownership 2025 2024 Navlink, Inc. Managed Service Provider delivering technology solutions in the enterprise data market Associate United States of America 40% 40% Asia Mobile Holdings Pte Ltd (“AMH”) Holding company Associate Singapore 25% 25% Monetix SPA (i) Electronic Banking Associate Algeria 19% 19% Ooredoo Hutchison Asia Pte. Ltd. (“OHA”) Holding company Joint venture Singapore 50% 50% PT. Indosat Tbk (Indosat Ooredoo Hutchison, (“IOH”) Telecommunication company Joint venture Singapore 32.82% 32.82% Asia Internet Holding S.a r.l. Holding Company Joint venture Luxembourg 50% 50% Intaleq Technology Consulting & Services W.L.L. Technical services for Sports venues and events Joint venture Qatar 55% 55% (i) Although the Group holds less than 20% effective holding of equity share s of certain entities, the Group exercises significant influence by virtue of its contractual right to appoint directors to the board of directors of that entity. The following table is the summarised financial information of the Group’s investments in associates and joint ventures: Ooredoo Hutchison Asia Others Total Ooredoo Hutchison Asia Others Total 2025 2025 2025 2024 2024 2024 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Group’s share of associates and joint ventures statement of financial position: Current assets 1,912,620 1,186,868 3,099,488 1,513,483 1,172,160 2,685,643 Non-current assets 10,732,374 2,450,499 13,182,873 11,224,252 2,196,503 13,420,755 Current liabilities (3,509,524) (952,747) (4,462,271) (3,701,987) (932,962) (4,634,949) Non-current liabilities (7,365,519) (2,085,383) (9,450,902) (7,307,348) (1,840,460) (9,147,808) Net assets 1,769,951 599,237 2,369,188 1,728,400 595,241 2,323,641 Goodwill 3,892,309 671,413 4,563,722 4,024,530 631,934 4,656,464 Carrying amount of the investments 5,662,260 1,270,650 6,932,910 5,752,930 1,227,175 6,980,105 Group’s share of associates and joint ventures revenues and results: Revenues 4,099,419 1,716,941 5,816,360 4,216,358 1,631,512 5,847,870 Profit for the year 271,599 23,931 295,530 325,015 47,649 372,664
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 60 17. INVESTMENT IN ASSOCIATES AND JOINT VENTURES (CONTINUED) The carrying amount of equity -accounted investments has changed as follows in the year ended 31 December 2025: Ooredoo Hutchison Asia Others Total 2025 2025 2025 QR.’000 QR.’000 QR.’000 At 1 January 5,752,930 1,227,175 6,980,105 Share of results for the year 271,599 23,931 295,530 Other comprehensive income 1,149 (16,137) (14,988) Change in non-controlling interest - (31,163) (31,163) Dividend received (177,166) (16,500) (193,666) Exchange adjustments (186,252) 83,344 (102,908) At 31 December 5,662,260 1,270,650 6,932,910 Ooredoo Hutchison Asia Others Total 2024 2024 2024 QR.’000 QR.’000 QR.’000 At 1 January 5,843,042 1,241,985 7,085,027 Share of results for the year 325,015 47,649 372,664 Other comprehensive income 584 (5,228) (4,644) Dividend received (143,794) (1,087) (144,881) Exchange adjustments (271,917) (56,144) (328,061) At 31 December 5,752,930 1,227,175 6,980,105 (i) The significant balance of investment in associates relates to AMH. In 2025, the Group received dividends from associates and joint ventures amounting to QR. 193,666 thousand (2024: QR. 144,881 thousand). During the year, the Group assessed its investment for impairment in OHA by comparing the recoverable amount (based on value in use calculations computed using cash flow projections) to the carrying value of the cash generating unit. The computations indic ated that the recoverable amount of the investment is higher than its carrying value. Tax demand notices against IOH As at 31 December 2025, Indosat Ooredoo Hutchison (IOH) remains subject to several tax demand assessments raised by the Indonesia Tax Authority. These assessments cover Corporate Income Tax, Withholding Tax, and Value Added Tax (VAT) claims relating to the fiscal y ears 2009 through 2019. Following the merger between Indosat Ooredoo and Hutchison in 22 January, IOH became a joint venture entity. Consequently, any potential tax exposure is limited to the Group’s proportionate shareholding of 32.82% in IOH. Based on this shareholding, the Group’s exposure as of 31 December 31 amounts to QR 70 million. IOH has exercised judgment in evaluating these matters and has recognized provisions of QR 9 million. In addition, IOH has disclosed contingent liabilities where economic outflows are considered possible but not probable. Accordingly, the Group’s net exposure in respect of these tax assessments is QR 61 million.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 61 18. FINANCIAL ASSETS AT FAIR VALUE 2025 2024 QR.’000 QR.’000 Investment in equity instrument designated at FVTOCI 576,150 572,057 Financial assets measured at FVTPL* 409,814 497,825 985,964 1,069,882 The Group’s financial assets comprise of investment in a telecommunication related compan y with fair value of QR. 495,757 thousand (2024: QR. 505,582 thousand), investment in venture capital funds accounted for at fair value through other comprehensive income (FVTOCI) and other private equity funds accounted for at fair value through profit or loss (FVTPL). * During the year, the Group sold part of its investment in Meeza which is measured at fair value through profit or loss. Further information about the fair value of these investments is disclosed in Note 40. 19. OTHER NON-CURRENT ASSETS 2025 2024 QR.’000 QR.’000 Long term advances and deposits (i) 21,930 29,467 Long-term prepayments (ii) 62,992 60,422 Advance made for the acquisition of property, plant and equipment 468,261 93,843 Contract assets 47,171 68,212 Others 55,381 47,426 655,735 299,370 (i) Mainly relates to long -term advances or deposits made in respect of property, plant and equipment. (ii) Long term prepayments mainly relate to payments in advance for service arrangements with terms ranging from 5 to 15 years. 20. INCOME TAX AND OTHER TAX RELATED FEES The income tax represents amounts recognised by the subsidiaries. The major components of the income tax expense for the year included in the consolidated statement of profit or loss are as follows: 2025 2024 QR.’000 QR.’000 Current income tax Current income tax charge 727,926 578,333 Adjustment in respect of previous years' income tax (622) (2,541) Industry fees (i) 201,031 230,535 Other tax related fees (ii) 9,344 25,965 Pillar II tax (iii) 208,335 - Deferred income tax Relating to origination and reversal of temporary differences 17,923 16,195 Income tax included in the consolidated statement of profit or loss 1,163,937 848,487 (i) In accordance with its operating licenses for Public Telecommunications Networks and Services granted in Qatar by ICT QATAR, now referred to as the Communications Regulatory Authority (“CRA”), the Company is liable to pay to the CRA an annual industry fee which is calculated at 12.5% (2024: 12.5%) of net profit from regulated activities undertaken in Qatar pursuant to the licenses which is accounted for under IAS 12.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 62 20. INCOME TAX AND OTHER TAX RELATED FEES (CONTINUED) (ii) Contributions by National Mobile Telecommunications Company K.S.C.P. to Kuwait Foundation for the Advancement of Sciences (“KFAS”), National Labour Support Tax (“NLST”) and Zakat represent levies/taxes imposed at the flat percentage of net profits attribut able less permitted deductions under the prevalent respective fiscal regulations of the State of Kuwait which is accounted for under IAS 12. The standard tax rate in the State of Qatar is 10%. The Company is not subject to tax in Qatar being a listed Company. The standard tax rate applicable to the taxable subsidiar y/joint venture companies in the range of 10% to 43% (2024: 10% to 39%). For the purpose of determining the taxable results for the year, the accounting profit of the companies were adjusted for tax purposes. Adjustments for tax purposes include items relating to both income and expense. The adjustments are based on the current understanding of the existing laws, regulations and practices of each subsidiaries’ jurisdiction. In view of the operations of the Group being subject to various tax jurisdictions and regulations, it is not practical to provide a detailed reconciliation between accounting and taxable profits together with the details of the effective tax rates. As a result, the reconciliation includes only the identifiable major reconciling items. The reconciliation of tax expense between domestic tax rate and effective tax rate of the Group is as follows: 2025 2024 QR.’000 QR.’000 Accounting consolidated profit before tax 5,776,010 4,875,589 Tax charge based on the standard tax rate of Qatar (10%) 577,601 487,559 Add/(deduct) tax effect of: Expenses and income that are not subject to tax (249,276) (219,349) Income subject to tax deduction at source 15,828 24,456 Subsidiaries with fiscal or tax losses (deferred tax asset not recognised) - 8,172 Allowances, accruals and other permanent differences 18,766 6,314 Difference between tax rate of Qatar and effective tax rate of subsidiary Companies 382,930 287,376 Global Minimum Top Up Tax (Pillar II Tax) 208,335 - Total Income Tax charge (Current, Pillar II and Deferred Income tax) at the effective income tax rate of 16.5% (2024: 12.2%) 954,184 594,528 Consolidated statement of financial position Consolidated statement of profit or loss 2025 2024 2025 2024 QR.’000 QR.’000 QR.’000 QR.’000 Accelerated depreciation / amortisation for tax purposes (42,017) (26,680) (15,366) 29,012 Losses available to offset against future taxable income 21,423 1,995 16,868 178 Allowances, accruals and other temporary differences 295,048 301,115 (15,733) 1,300 Lease liabilities (1,279) (1,539) (3,692) (46,685) Deferred tax expense - - (17,923) (16,195) Deferred tax asset/deferred tax liability – net 273,175 274,891 - -
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 63 20. INCOME TAX AND OTHER TAX RELATED FEES (CONTINUED) Reconciliation of deferred tax assets: 2025 2024 QR.’000 QR.’000 At 1 January 310,897 321,384 Deferred tax expense during the year (14,689) (6,440) Exchange adjustment 16,436 (4,047) At 31 December 312,644 310,897 Reconciliation of deferred tax liabilities: 2025 2024 QR.’000 QR.’000 At 1 January 36,006 26,251 Deferred tax expense during the year 3,234 9,755 Exchange adjustment 229 - At 31 December 39,469 36,006 (iii) In December 2021, the Organisation for Economic Co -operation and Development (OECD) issued model rules for a new global minimum 15% tax framework (Pillar II tax), and various governments around the world have issued, or are in the process of issuing, legislation related to this framework. Qatar has enacted the OECD Pillar II framework into domestic law through Law No. 22 of 2024, which amends the Income Tax Law No. 24 of 2018. The law was published in the Official Gazette on 27 March 2025 and applies to fiscal periods beginning on or after 1 January 2025. Under this legislation, Qatar has implemented two Pillar II mechanisms: (i) the Income Inclusion Rule (IIR), which requires a Qatari Ultimate Parent Entity to pay a top up tax in respect of low taxed foreign constituent entities; and (ii) a Domestic Minimum Top Up Tax (DMTT), which ensures that profits generated in Qatar are subject to a minimum effective tax rate of 15%, thereby preventing the reallocation of taxing rights to other jurisdictions. Similarly, in Kuwait, Law No. 157 of 2024 introduced a Domestic Minimum Top Up Tax in line with the Pillar II Model Rules. The law applies to multinational enterprise groups with consolidated revenues of at least EUR 750 million and is designed to ensure t hat profits attributable to Kuwait are taxed at a minimum effective tax rate of 15%. To enhance certainty and consistency with the OECD framework, Article 116 of the Executive Regulations requires the law to be interpreted and applied in accordance with the Pillar II Model Rules and the related Commentary. The introduction of this regime replaces the existing National Labor Support Tax (NLST) and Zakat tax regimes for multinational groups within the scope of the law. Under Pillar II legislation, the Group is required to pay a top up tax equal to the difference between the effective tax rate applicable in each jurisdiction and the minimum rate of 15%. After considering the specific adjustments prescribed by the Pillar II rules, the Group recognised a Pillar II tax expense of QR. 208,335 thousand for the reporting period, comprising QR. 184,335 thousand in Qatar and QR. 24,000 thousand in Kuwait. This amount is included within income tax and other tax related fees in the consolidated statement of profit or loss. On 23 May 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 12 ‘Income taxes’ introducing a mandatory temporary exception to the requirements of IAS 12 under which an entity does not recognise or disclose information about deferred tax assets and liabilities related to the proposed OECD BEPS Pillar II rules. The Group has applied this mandatory exception to recogni sing and disclosing information about deferred tax assets and liabilities arising from Pillar II income taxes.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 64 21. CONTRACT COSTS 2025 2024 QR.’000 QR.’000 Current 249,505 227,830 Non-Current 214,788 153,448 464,293 381,278 22. INVENTORIES 2025 2024 QR.’000 QR.’000 Subscribers’ equipment 137,220 140,916 Other equipment 168,944 238,919 Cables and transmission equipment 106,099 102,440 412,263 482,275 Less: Provision for obsolete and slow moving inventories (128,547) (130,442) 283,716 351,833 Inventories consumed are recognised as expense and included under operating expenses. These amounted to QR. 1,577,792 thousand (2024: QR. 1,819,124 thousand). Movement in the provision for obsolete and slow-moving inventories is as follows: 2025 2024 QR.’000 QR.’000 At 1 January 130,442 175,333 Deconsolidation of a subsidiary - (1,503) Provided during the year 4,669 (650) Amounts written off (9,404) (42,130) Exchange adjustment 2,840 (608) At 31 December 128,547 130,442 23. TRADE AND OTHER RECEIVABLES 2025 2024 QR.’000 QR.’000 Trade receivables – net of impairment allowances (i) 2,104,896 1,930,688 Other receivables – net of impairment allowances and prepayments 1,359,640 1,578,189 Contract assets – net of impairment allowances 1,057,423 1,006,209 Amounts due from international carriers – net of impairment allowances 416,784 288,922 Positive fair value of derivative contracts - 7 4,938,743 4,804,015 (i) At 31 December 2025, trade receivables cumulative impairment allowance is amounting to QR. 1,902,638 thousand (2024: QR. 1,927,637 thousand).
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 65 23. TRADE AND OTHER RECEIVABLES (CONTINUED) The following table details the risk profile of trade receivables based on the Group’s provision matrix. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Group’s remaining different customer base. Trade receivables – days past due 31 December 2025 < 30 days 30 – 60 days 60-90 days 90-365 days > 365 days Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Expected credit loss rate 5% 8% 15% 40% 84% 47% Gross carrying amount at default 994,285 355,265 175,310 645,410 1,837,264 4,007,534 Lifetime ECL (44,794) (27,912) (27,128) (256,711) (1,546,093) (1,902,638) Carrying amount 949,491 327,353 148,182 388,699 291,171 2,104,896 Trade receivables – days past due 31 December 2024 < 30 days 30 – 60 days 60-90 days 90-365 days > 365 days Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Expected credit loss rate 4% 8% 14% 38% 83% 50% Gross carrying amount at default 883,718 298,181 160,904 551,143 1,964,379 3,858,325 Lifetime ECL (36,877) (22,380) (22,372) (207,416) (1,638,592) (1,927,637) Carrying amount 846,841 275,801 138,532 343,727 325,787 1,930,688 Details about the Group’s impairment policies and the calculation of the loss allowance are provided in note 39. 24. BANK BALANCES AND CASH Cash and cash equivalents included in the consolidated statement of cash flows comprise the following items: 2025 2024 QR.’000 QR.’000 Bank balances and cash – net of impairment allowance (i, ii) 15,715,427 16,933,408 Less: Deposits with maturity of more than three months (iii) (1,764,787) (1,213,670) Restricted deposits (iv) (789,061) (602,959) Cash and cash equivalents as per consolidated statement of cash flows at 31 December (v) 13,161,579 15,116,779 (i) Bank balances and cash include deposits maturing after three months amounting to QR. 7,476,675 thousand (2024: QR. 9,755,895 thousand). The Group is of the opinion that these deposits are readily convertible to cash and are held to meet short -term commitments. (ii) Deposits are made for varying periods depending on the immediate cash requirements of the Group and earn interest on the respective deposit rates ranging from 1.85% to 9.99% (2024: 1.65% to 10.54%). (iii) Deposits with maturity of more than three months were excluded from bank balances and cash.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 66 24. BANK BALANCES AND CASH (CONTINUED) (iv) The restricted deposits primarily pertain to dividend payments, collateral deposits for issuance of bank guarantees and related to a regulatory disputes and various other purposes (which are not considered individually significant). These restricted deposits are subject to regulatory and/or other restrictions and are therefore not available for general use by the Group. (v) Certain cash and cash equivalents are used as collateral to secure the Group’s obligations. Balances with banks are assessed to have low credit risk of default since these banks are highly regulated by the central banks of the respective countries. The Group estimates the loss allowance on balances with banks at the end of the reporting period at an amount equal to 12-month ECL. None of the balances with banks at the end of the reporting period are past due and taking into account the historical defa ult experience and the current credit ratings of the banks, the Group has recorded a reversal of impairment loss of QR. 783 thousand during the year ended 31 December 202 5 (2024: impairment loss of QR. 1,532 thousand). Details about the Group’s impairment policies and the calculation of the loss allowance are provided in note 40. Non-cash transactions The principal non -cash transactions during the year ended 31 December 2025 comprise mainly of acquisition of property, plant, and equipment of QR. 619,471 thousand (2024: QR. 764,199 thousand) and intangible assets of QR. 452,897 thousand (2024: Nil) through trade and other payables and acquisition of right of use assets through lease liabilities (note 15). 25. SHARE CAPITAL 2025 2024 No of shares (‘000) QR.’000 No of shares (‘000) QR.’000 Authorised Ordinary shares of QR. 1 each At 31 December 5,000,000 5,000,000 5,000,000 5,000,000 Issued and fully paid up Ordinary shares of QR. 1 each At 31 December 3,203,200 3,203,200 3,203,200 3,203,200 26. RESERVES a) Legal reserve In accordance with Qatar Commercial Companies Law No. 11 of 2015, as amended by Law number 8 of 2021, and the Company’s Articles of Association, 10% of the profit of the Company for the year should be transferred to the legal reserve until such reserves reach 50% of the issued share capital. During 2008, an amount of QR. 5,494,137 thousand , being the net share premium amount arising out of the rights issue, was transferred to legal reserve. During 2012, an amount of QR. 5,940,145 thousand, being the net share premium amount arising out of the rights issue, was transferred to legal reserve. The reserve is not available for distribution except in the circumstances stipulated in the Qatar Commercial Companies Law and the Company’s Articles of Association.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 67 26. RESERVES (CONTINUED) b) Fair value reserve The fair value and other reserves comprise the cumulative net change in the fair value of financial assets– equity instruments at FVTOCI and effective portion of qualifying cash flow hedges. The following tables shows the breakdown of the balance sheet line item ‘Fair value and other reserves’ and the movements in these reserves during the year. A description of the nature and purpose of each reserve is provided below the tables. Fair value reserve of investment s classified as FVTOCI Cash flow hedge reserve Total Fair value reserve of investments classified as FVTOCI Cash flow hedge reserve Total 2025 2025 2025 2024 2024 2024 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 At 1 January 411,558 (15,117) 396,441 323,064 (10,597) 312,467 Other comprehensive income 2,890 (14,047) (11,157) 90,301 (4,520) 85,781 Realised gain on equity investment recycled to retained earnings - - - (1,807) - (1,807) At 31 December 414,448 (29,164) 385,284 411,558 (15,117) 396,441 c) Employees’ benefits reserve Employment benefits reserve is created on account of adoption of revised IAS – 19 Employee benefits. Employee benefits reserve comprises actuarial gains (losses) pertaining to defined benefit plans. d) Translation reserve The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. e) Other statutory reserves In accordance with the statutory regulations of the various subsidiaries, a share of their respective annual profits should be transferred to a non-distributable statutory reserve. 27. COMPONENTS OF OTHER COMPREHENSIVE INCOME 2025 2024 QR.’000 QR.’000 Items that may be reclassified subsequently to profit or loss Cash flow hedges Share of other comprehensive loss of associates and joint ventures (14,047) (4,520) Foreign currency translation reserve Foreign currency translation differences 274,298 (464,396) Translation reserve recycled to profit or loss - 495,501 274,298 31,105
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 68 27. COMPONENTS OF OTHER COMPREHENSIVE INCOME (CONTINUED) 2025 2024 QR.’000 QR.’000 Items that will not be reclassified subsequently to profit or loss Net changes in fair value on investments in equity instruments designated as at FVTOCI 3,978 90,731 Employment benefit Reserve Net changes in fair value of employees benefit reserve 1,722 - Share of other comprehensive income/(loss) of associates and joint ventures (941) (124) Other comprehensive income - net of tax 265,010 117,192 28. IMPAIRMENT LOSSES ON GOODWILL AND OTHER NON-FINANCIAL ASSETS 2025 2024 QR.’000 QR.’000 Impairment loss on Goodwill (i) 119,768 110,973 Impairment loss on other non-financial assets 11,607 19,433 Total 131,375 130,406 (i) As at 31 December 2025, and as a result of the most recent Ooredoo Tunisia performance against its budget, the Group reassessed its investment in Tunisia by comparing the recoverable amount (based on value in use calculations computed using cash flow projections) to the carrying value of the cash generating unit. The computations indicated that the recoverable amount of the investment is less than the carrying value and as a result an impairment charge of QR. 120 million has been reflected in the consolidated statement of profit or loss.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 69 29. DEFERRED INCOME Deferred income pertains to unearned revenue from services that will be provided in future periods. It primarily includes revenue from the unused and unutilised portion of prepaid cards sold. The sale of prepaid cards is deferred until such time as the customer uses the airtime, or the credit expires. 30. LOANS AND BORROWINGS Presented in the consolidated statement of financial position as: 2025 2024 QR.’000 QR.’000 Non-current liabilities Secured loan 50,995 75,508 Unsecured loan 1,388,377 957,189 Bonds 9,103,754 10,924,504 Less: Deferred financing costs (82,567) (95,198) Total non-current liabilities 10,460,559 11,862,003 Current liabilities Secured loan 43,023 42,799 Unsecured loan 362,745 360,183 Bonds 1,820,751 2,731,126 Less: Deferred financing costs (13,462) (17,456) Interest payable 153,178 162,982 Total current liabilities 2,366,235 3,279,634 Total loans and borrowings 12,826,794 15,141,637 The deferred financing costs consist of arrangement and other related fees. Movement in deferred financing costs was as follows: 2025 2024 QR.’000 QR.’000 At 1 January 112,654 123,433 Additions during the year 831 24,096 Amortised during the year (Note 9) (23,823) (23,730) Exchange adjustment 6,367 (11,145) At 31 December 96,029 112,654
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 70 30. LOANS AND BORROWINGS (CONTINUED) Type Currency Nominal Interest rate Year of maturity 2025 2024 QR.’000 QR.’000 Bonds USD 2.63% to 5.00% Oct’25 to Jan’ 43 10,924,505 13,655,630 Secured Loans USD 3M SOFR +2.35%, 6m SOFR +1.5% & fixed rate of 6.5% to 8.75% Sep'25 to Sep’30 94,018 118,307 Unsecured Loans KWD CBK +0.60% to 0.65% Oct’28 118,407 118,173 Unsecured Loans TND TMM Rate +1.00% Jan’30 377,618 342,579 Unsecured Loans QR QML rate-0.3% Jul’34 1,085,000 600,000 Unsecured Loans USD Fixed rate of 1.53% to 8.75%, 3M SOFR + 4.37% to 5% Immediate to Dec’ 27 65,955 175,200 Unsecured Loans OMR Bank Muscat FD rate +1.75% Oct’25 to Oct’26 104,142 81,420 12,769,645 15,091,309 Less: Deferred financing costs (96,029) (112,654) Interest payable 153,178 162,982 Total 12,826,794 15,141,637 The loans and borrowings are availed for general corporate and operational purposes, financing capital expenditures and working capital requirements and repayment or refinancing of existing borrowing facilities. The bonds are listed on Irish Stock Exchange Euronext Dublin, except for the one maturing in October 2025, which is listed on London Stock Exchange. All outstanding bonds are unconditionally and irrevocably guaranteed by the Company. On 10 October 2024, Ooredoo successfully completed issuance of its USD 500 million senior unsecured notes priced at an annual coupon rate of 4.625%, maturing on 10 October 2034. These notes were issued by its wholly owned subsidiary, Ooredoo International Finance Limited under its existing USD 5 billion Global Medium Term Notes programme on Euronext Dublin and are unconditionally and irrevocably guaranteed by Ooredoo. Refer to note 40 for the fair value of the Group’s loans and borrowings. Loan covenants: Under the terms of the major borrowing facilities, the Group is required to comply with the following financial covenant: • Consolidated total net debt not to exceed 4.5 times the consolidated EBITDA. • Consolidated EBITDA to consolidated net interest payable must not be less than 2.75 times. The Group has complied with these covenants throughout the reporting period.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 71 31. EMPLOYEES’ BENEFITS 2025 2024 QR.’000 QR.’000 Employees’ end of service benefits 565,481 535,768 Long term incentive points-based payments * 212,696 220,033 Total employee benefits 778,177 755,801 Current portion of long-term incentive points-based payments (Note 33) (110,524) (117,326) Total 667,653 638,475 Movement in the provision for employees’ benefits are as follows: 2025 2024 QR.’000 QR.’000 At 1 January 755,801 732,449 Provided during the year 176,680 186,394 Paid during the year (152,780) (161,868) Other comprehensive income (1,722) - Exchange adjustment 198 (1,174) At 31 December 778,177 755,801 * The carrying amount of the liability arising from long term incentive points -based payments is determined by the achievement of certain performance targets and share price of the Company. As at the reporting date, the carrying amount of liability arising f rom long term incentive points-based payments approximates its fair value. 32. OTHER NON-CURRENT LIABILITIES 2025 2024 QR.’000 QR.’000 License cost payables (i) 236,879 144,141 Others (ii) 276,436 162,150 513,315 306,291 (i) License cost payables represent amounts payable to Telecom regulators in I raq and countries in which NMTC Group entities operate. (ii) Others mainly include long-term procurement payables. 33. TRADE AND OTHER PAYABLES 2025 2024 QR.’000 QR.’000 Trade payables 1,180,577 1,239,748 Accrued expenses (i) 5,100,857 4,630,184 Payables to Communication regulatory authority 442,314 518,914 Amounts due to international carriers - net (ii) 356,469 324,985 License cost payable 368,279 - Long term incentive points-based payments (Note 31) 110,524 117,326 Negative fair value of derivatives 198 - Other payables (iii) 929,178 820,282 8,488,396 7,651,439 (i) This mainly consists of accrual for operating and capital expenditure.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 72 33. TRADE AND OTHER PAYABLES (CONTINUED) (ii) Amounts due to international carriers are offset against amounts due from international carriers and the net amount presented only where the Group currently has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. (iii) Other payables mainly include dividend payables, deposits, and advances. 34. CONTRACT LIABILITIES 2025 2024 QR.’000 QR.’000 Current 99,142 68,285 Non-current 16,667 14,337 115,809 82,622 A contract liability mainly arises in respect of the Group’s customer loyalty points scheme (“loyalty points”). As these loyalty points provide a benefit to customers that they would not receive without entering into a purchase contract, the promise to provide loyalty points to the customer is a separate performance obligation. The revenue related to unsat isfied or partially satisfied performance obligations is expected to be realised within two years of the reporting date. 35. DIVIDEND Dividend paid and proposed 2025 2024 QR.’000 QR.’000 Declared, accrued and paid during the year Final dividend for 2024 QR. 0.65 (2023: QR. 0.55 per share) 2,082,080 1,761,760 Proposed for approval at Annual General Meeting (Not recognised as a liability as at 31 December): Final dividend for 2025 QR. 0.75 per share (2024: QR. 0.65 per share) 2,402,400 2,082,080 The proposed final dividend will be submitted for formal approval at the Annual General Meeting. 36. ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR SALE The assets and liabilities classified as held for sale relate to the Group’s Qatar tower operations following receipt of regulatory approval for the transaction described in Note 48. The carrying amounts of the major classes of assets and liabilities classified as held for sale as at 31 December 2025 are set out below: 2025 QR.’000 Assets classified as held for sale Property, plant and equipment 246,265 Right of use assets 168,478 Total assets classified as held for sale 414,743 Liabilities directly associated with assets classified as held for sale Site restoration provision 31,566 Lease liabilities 163,321 Trade and other payables 14,576 Total liabilities directly associated with assets classified as held for sale 209,463
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 73 37. OPERATING LEASE ARRANGEMENTS At the date of statement of financial position, the Company has outstanding commitments under non - cancellable operating leases, which fall due as follows: 2025 2024 QR.’000 QR.’000 Future minimum lease payments in respect of short term and low value leases as at 31 December 18,708 20,646 Upon adoption of IFRS 16, certain operating lease commitments were identified and considered. The leases are related to short term and low value leases. 38. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATIONS 2025 2024 QR.’000 QR.’000 Capital expenditure commitments Estimated capital expenditure contracted for at the end of the financial reporting year but not yet incurred 1,299,030 1,718,573 Letters of credit 357,186 275,821 Letters of guarantees 1,876,820 1,004,086 Litigation and claims The Group is from time to time a party to various legal actions and claims arising in the ordinary course of its business. The Group does not believe that the resolution of these legal actions and claims will, individually or in the aggregate, have a mater ial adverse effect on its financial condition or results of operations, except as noted below. Proceedings against Asiacell relating to regulatory fee On 10 June 2014, the Communications and Media Commission (“CMC”) issued a letter notifying Asiacell that its structure in relation to ownership of the shares in its capital does not fulfil the License requirements as an Iraqi Company to pay 15% of its gross revenue as a regulatory fee, as per license agreement and the CMC has instead demanded 18%. During 2024, whilst still disputing the matter, Asiacell, at the request of the CMC, has continued depositing the disputed amount of regulatory fees on a monthly basis. Notwithstanding the payment of the 3% incremental regulatory fees, Asiacell management continues to claim that the fee is not legitimate based on the favourable court rulings and that the paid amount is only deposited with the CMC to secure the license renewal. Asiacell initiated a case against the CMC claiming that the CMC demand is illegal as the additional 3% license fee is unenforceable in view of the Court of Cassation decision. As at 31 December 2025, there had been no further developments in this case, and Asiacell continued to pay the additional 3% license fee.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 74 38. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATIONS (CONTINUED) Proceedings against Asiacell relating to Universal Services Fee (“USF”) On 7 December 2017, the CMC issued letters notifying Asiacell and other operators in Iraq asking them to hold 1.5% of their 2017 Revenues (excluding local interconnection costs) as a USF. Asiacell complied with the CMC request. In 2018, Asiacell received a second letter asking them to provision the 1.5% USF retroactively from the end of the second anniversary of the license term (2009). Management estimates the additional exposure in relation to this demand is approximately QR. 691 million. Asiacell rejected the retroactive implementation of the USF on the grounds that it is illegal. Another operator in Iraq initiated a dispute against the CMC decision at the CMC Hearing Panel. In February 2021, this operator won the dispute with CMC in which the Appeal Panel stated that the CMC had no right to impose retroactive application of the new USF fees. Due to this, in March 2021 , Asiacell initiated its own dispute proceeding at the CMC Hearing Panel. In 2022, as the Hearing Panel rejected the case, Asiacell filed an appeal before the Appeal Panel. In 2024, the Appeal Panel rejected Asiacell’s request and confirmed CMC payment. On 2 July 2024, CMC issued a letter requesting a final amount of QR . 557m. Asiacell challenged this before the Appeal Panel. In early 2025, Asiacell filed an appeal with the Public Prosecution Office (PPO), contending that the retroactive demand for Universal Service Fund (USF) contributions was unlawful and contravened constitutional and public law principles. The PPO Appeal Co mmittee accepted the appeal, endorsed Asiacell’s arguments, and referred its opinion to the CMC Appeal Panel. The Appeal Panel subsequently reviewed the case and resolved to overturn the CMC’s decisions concerning the retroactive USF demand, as set out in Decision No. 13/Appeal/2025 dated 30 January 2025. This decision in favor of Asiacell is final and not appealable. Proceeding against Asiacell relating to 4G Licence Quality of Service Fines In January 2021, Asiacell paid a licence extension fee for 4G and 3G licence for an 8 -year period. The renewed licence contained an annex related to quality of service (QoS) that was not finalised at the time of the licence award. CMC has subsequently sought to introduce the QoS annex in the licence terms, which initiated discussions and workshops with CMC to modify the annex. In August 2023, the CMC issued two fines against Asiacell amounting to QR. 116 million for decline in QoS related to 4G services from the period March 2022 to February 2023. On 28 September 2023, two appeal were filed by Asiacell against these fines. In 2024, CMC rejected the Asiacell’s appeal for one of the two fines amounting to QR. 82.4 million. The management decided to book a provision for this fine. As No decision has been received yet on the second fine amounting to QR. 33.6 million, Asiacell has not recorded any provision for this matter. On 13 July 2025, the Appeals Panel ruled to drop the QR. 82.4 million fine to zero as the case had no impact on subscribers. As a result, CMC cancelled the fine and Asiacell released the provision. Regarding the second fine, CMC issued a new decision, in which the fine was recalculated in accordance with the requirements set forth by the Appeal Panel, resulting in a total fine of QR . 1.8m, which was accepted and paid to CMC.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 75 38. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATIONS (CONTINUED) Kuwaiti Minister of Communication (MoC) and CITRA against Ooredoo Kuwait In April 2017, Kuwait’s Cassation Court invalidated a portion of the regulatory tariff decree 126/2011 levied on mobile telecommunication companies in Kuwait since 26 July 2011 by Kuwait’s Ministry of Communications. Accordingly, Ooredoo Kuwait filed a claim for the recovery of the excess amount paid from a change in regulation till date. In March 2023, the Court of Cassation rendered its ruling in favour of Ooredoo Kuwait for a part of the contingent asset by enforcing the CITRA and MoC to compensate repay/refund Ooredoo Kuwait a sum of QR. 510 million, which represents the amount overpaid for the period from 26 July 2011 till August 2016. In 2023. Ooredoo Kuwait completed the execution process and received the full amount of the judgment. A decision on the amounts overpaid for the period from August 2016 till date is awaiting the Court of Cassation's verdict, pursuant the regulatory decrees No. 90/2016 and 128/2020. On 27 January 2025, CITRA and MoC filed a lawsuit against Ooredoo Kuwait for the reimbursement of the amount adjudicated in the aforementioned case. Management, supported by its external legal advisors, is of the view that Ooredoo Kuwait has strong grounds to defend these claims. On 14 May 2025, the Court of First Instance ruled in favor of Ooredoo Kuwait, rejecting the claims brought by CITRA and the MoC. On 3 June 2025, CITRA and the MoC appealed this decision. The appeal hearing initially scheduled for 9 July 2025 has been adjou rned several times, with the next hearing scheduled for 4 March 2026. Proceeding against Ooredoo Palestine On 23 October 2017, the Regulator issued a letter notifying Ooredoo Palestine to pay the second payment of the license acquisition fee of QR. 291 million due to the fact that Ooredoo Palestine reached 700 thousand subscribers. The license sets up a third license payment of QR. 488 million when Ooredoo Palestine reaches 1 million subscribers. In September 2019, the Minister of Finance and Minister of Telecom and IT (MTIT) issued a letter notifying Ooredoo Palestine to pay QR. 781 million , which is the remaining unpaid second and third payment of the license fee. These second and third payments are subject to the assignment of the 2G and 3G spectrum and the actual launch of these services in the West Bank and Gaza. At 31 December 2024, the dispute between Ooredoo Palestine and MTIT was still ongoing. Management have applied their judgement for these claims. Management, supported by their external legal advisors, is of the view that Ooredoo Palestine has strong grounds to defend these claims. As a result, management has not recorded any provision for these claims. Both Ooredoo Palestine’s Board of Directors and the Council of Ministers approved the final settlement agreement. As a result, Ooredoo Palestine’s license agreement has been formally extended to September 2041, and all disputes, claims and related obligati ons between the parties have been fully resolved. As part of the settlement, Ooredoo Palestine made a payment of QR. 129,492 thousand in 2025 and required to pay an additional QR. 201,863 thousand recorded as part of the license fee payable in the consolidated statement of financial position as at 31 December 2025. Ooredoo Palestine further undertook certain commitments, primarily representing financial contributions allocated to telecom infrastructure development projects.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 76 38. COMMITMENTS, CONTINGENT LIABILITIES AND LITIGATIONS (CONTINUED) Algeria Central Bank against Ooredoo Algeria In late 2016, Algeria Central Bank (“ACB”) conducted a review of Ooredoo Algeria money transfers outside Algeria and currency exchange. The review claims that Ooredoo Algeria has committed money transfer and foreign exchange regulations violations during 2013-2014. Accordingly, in December 2018, Algeria’s public prosecution along with the Algerian Ministry of Finance initiated a criminal investigation against Ooredoo Algeria. The investigation includes 15 misdemeanour cases against Ooredoo Algeria in relati on to money transfer from its export bank account and roaming repatriation of funds without complying with the central bank’s processes. The criminal court sentenced Ooredoo Algeria to pay a total of QR. 305 million in fines and compensation. Ooredoo Algeria has booked QR. 29 million provision related to the export bank account violations (14 cases) and appealed the decision to the Court of Cassation. The net exposure amounting to QR. 276 million is related to the roaming repatriation case. During 2020, Ooredoo Algeria appealed the case to the Supreme court. Ooredoo Algeria, supported by external legal opinion, believes that it will more likely than not win the case in the Court of Cassation. As a result, Ooredoo Algeria did not provide for this exposure. At 31 December 202 5, there were no updates on these 15 cases. Other matters In addition to the above matters, as at 31 December 2025, there were a number of legal, regulatory and tax disputes ongoing in various of the Group’s operating entities, the outcome of which may not be favourable to the Group, and none of which are considered individually material. The Group has applied its judgement and has recognised liabilities based on whether additional amounts will be payable and has included contingent liabilities where economic outflows are considered possible but not probable.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 77 39. FINANCIAL RISK MANAGEMENT Objectives and policies The Group’s principal financial liabilities, other than derivatives, comprise loans and borrowings, finance leases, and trade payables. The main purpose of these financial liabilities is to raise finance for the Group’s operations. The Group has various fi nancial assets such as trade receivables, investments and cash and short-term deposits, which arise directly from its operations. The Group also enters into derivative transactions, primarily interest rate swaps, cross currency swaps and forward currency contracts. The purpose is to manage the interest rate and currency risks arising from the Group’s operations and its sources of finance. The main risks arising from the Group’s financial instruments are market risk, credit risk, liquidity risk and operational risk. The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below: Market risk Market risk is the risk that changes in market prices, such as interest rates, foreign currency exchange rates and equity prices will affect the Group’s profit, equity or value of its holding of financial instruments. The objective of market risk managemen t is to manage and control the market risk exposure within acceptable parameters, while optimising return. Interest rate risk The Group’s financial assets and liabilities exposed to interest rate risk primarily include bank deposits, loans receivables, investment measured at fair value through other comprehensive income, and borrowings. The risk position of the Group is monitored, evaluated, and, if necessary, adjusted in response to changing interest rate environments. Overall, the Group maintains a conservative financial profile by predominantly securing its financial assets and liabilities at fixed interest rates, which provides strong protection against interest rate volatility. As at 31 December 2025, borrowings 86% are at fixed rate of interest (2024: 92%). The following table demonstrates the sensitivity of the consolidated statement of profit or loss and equity to reasonably possible changes in interest rates by 25 basis points, with all other variables held constant. The sensitivity of the consolidated st atement of profit or loss and equity is the effect of the assumed changes in interest rates for one year, based on the floating rate financial assets and financial liabilities held at 31 December. The effect of decreases in interest rates is expected to be equal and opposite to the effect of the increases shown.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 78 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Interest rate risk (continued) Effect on consolidated statement of profit or loss Effect on consolidated statement of changes in equity +25bp +25 bp QR.’000 QR.’000 At 31 December 2025 USD SOFR (124) - Others (4,213) - At 31 December 2024 USD SOFR (159) - Others (2,855) - The Group has closely monitored the market and the output from the various industry working groups managing the transition to new benchmark interest rates. This includes announcements made by the IBOR regulators. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities and the Group’s net investment in foreign subsidiaries. The Group had the following significant net exposure denominated in foreign currencies. 2025 2024 QR.’000 QR.’000 Assets (Liabilities) Assets (Liabilities) Kuwaiti Dinar (KD) 27 25,816 US Dollars (USD) (364,612) (40,981) Euro (EUR) (19,196) 14,402 Great British Pounds (GBP) 503 (259) Algerian Dinar (DZD) - 11,574 Singapore Dollar (SGD) - (1,855) Others (12,094) (8,938) The following table demonstrates the sensitivity to consolidated statement of profit or loss and equity for a reasonably possible change in the following currencies against Qatari Riyal, with all other variables held constant, of the Group’s profit due to changes in the fair value of monetary assets and liabilities and the Group’s equity on account of translation of foreign subsidiaries.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 79 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Foreign currency risk (continued) The effect of decreases in foreign exchange rates is expected to be equal and opposite to the effect of the increases shown: Effect on profit or loss 2025 2024 + 10% + 10% QR.’000 QR.’000 Kuwaiti Dinar (KD) 3 2,582 US Dollar (USD) (36,461) (4,098) Euro (EUR) (1,920) 1,440 Great British Pounds (GBP) 50 (26) Algerian Dinar (DZD) - 1,157 Singapore Dollar (SGD) - (186) Equity price risk The Group is not significantly exposed to equity price risk as the balance of the investments held by the Group are classified either as investment in equity instruments designated at FVTOCI or Financial assets measured at FVTPL is not material. Credit risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. The Group provides telecommunication services to various customers. It is the Group’s policy that all customers who obtain the goods and / or services on credit terms are subject to credit verification procedures. In addition, receivable balances are monit ored on an ongoing basis and the purchase of service limits are established for each customer, which are reviewed regularly based on the level of past transactions and settlement. The Group applies the IFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for trade receivables and contract assets. The expected credit losses on trade receivables are estimated using a provision matr ix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date . To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit risk characteristics and the days past due. The contract assets relate to unbilled services and have substantially the same risk character istics as the trade receivables for the same types of contracts. The Group has therefore concluded that the expected loss rates for the current trade receivables are a reasonable approximation of the loss rates for the contract assets. For the contract assets, the provision for loss allowance amounted to QR. 50,046 thousand (2024: QR. 55,236 thousand). Refer to note 23 for the aging and loss rates of trade receivables. Unimpaired receivables are expected on the basis of past experience to be fully recoverable. It is not the practice of the Group to obtain collateral over receivables and the vast majorities are therefore, unsecured. The average credit period on sales of goods and rendering of services varies from 30 to 90 days depending on the type of customer and local market conditions. No interest is charged on outstanding trade receivables.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 80 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Credit risk (continued) Management has assessed that any reasonable possible change in the key assumptions in relation to the provision for loss allowance would not result in a material impact. The Group applies the general model approach to measure expected credit losses for other receivables, cash and bank balances (excluding cash on hand) and due from related parties. Credit risk measurement The Group considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Especially the following indicators are incorporated: - internal credit rating; - external credit rating (as far as available); - actual or expected significant adverse changes in business, financial or economic conditions that are expected to cause a significant change to the borrower’s ability to meet its obligations; - actual or expected significant changes in the operating results of the borrower; - significant increases in credit risk on other financial instruments of the same borrower; - significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements; and - significant changes in the expected performance and behavior of the borrower, including changes in the payment status of borrowers in the group and changes in the operating results of the borrower. Macroeconomic information (such as market interest rates or growth rates) is incorporated as part of the internal rating model. Irrespective of the outcome of the above assessment, the Group presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 to 90 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise. Credit risk grades Credit risk grades are defined using qualitative and quantitative factors that are indicative of risk of default. These factors vary depending on the nature of the exposure and the type of borrower. Exposures are subject to on-going monitoring, which may r esult in an exposure being moved to a different credit risk grade. While other receivables and due from related parties are subject to the impairment requirements of IFRS 9, the identified impairment loss was immaterial. The exposure of credit risk from amounts due from international carriers is minimal as the amounts are driven by contractual arrangements with other telecom operators. With respect to credit risk arising from the cash and bank balances (excluding cash on hand), the Group’s exposure arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments. The Group reduces the exposure to credit risk arising from bank balances by maintaining bank accounts in reputed banks.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 81 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Credit risk (continued) Credit risk grades (continued) The Group reduces the exposure to credit risk arising from bank balances by maintaining the bank accounts primarily with investment grade banks. As on 31 December 202 5, 77% (2024: 76%) of bank balances were maintained with banks having a credit rating of AAA to A -, 11% (2024: 2%) of bank balances were maintained with banks having a credit rating of BBB+ to BBB- and 12% (2024: 22%) of bank balances were maintained with banks having a credit rating of BB+ and below. The below table shows the collective assessment of movement in ECL that has been recognised for financial instruments: 2025 2024 QR.’000 QR.’000 Balance as at 1 January 2,260,897 2,141,118 Deconsolidation of a subsidiary - (5,573) Charge for the year 174,188 317,398 Amounts written off (240,837) (184,799) Exchange adjustment 38,864 (7,247) Balance as at 31 December 2,233,112 2,260,897 Credit risk arising from derivative financial instruments is at any time, limited to those with derivative assets, as recorded on the consolidated statement of financial position. With gross settled derivatives, the Group is also exposed to settlement risk. The carrying amount of the Group’s financial assets at FVTPL and FVTOCI, as disclosed in note 18, has no credit risk. The Group holds no collateral over any of these balances. Credit risk management Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. As at 31 December 2025, the Group’s maximum exposure to credit risk without taking into account any collateral held or other credit enhancements, which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees provided by the Group arises from the carrying amount of the respective recognised financial assets as stated in the consolidated statement of financial position. Considering the Group’s large and unrelated customer base, the concentration of credit risk is limited. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet financial obligations as they fall due. The Group’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed condit ions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of the G roup’s own reserves and bank facilities. The Group’s terms of sales require amounts to be paid within 30 to 90 days from the invoice date.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 82 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Liquidity risk (continued) The table below summari ses the maturity profile of the Group’s financial liabilities at 31 December based on contractual undiscounted payments: Less than 1 year 1 to 2 years 2 to 5 years > 5 years Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 At 31 December 2025 Loans and borrowings 2,677,031 532,150 3,034,102 9,966,679 16,209,962 Trade payables 1,180,577 - - - 1,180,577 License costs payable 368,279 313,435 85,941 16,816 784,471 Lease liabilities 727,661 980,163 1,090,202 1,514,729 4,312,755 Other financial liabilities 467,191 102,172 - - 569,363 Total 5,420,739 1,927,920 4,210,245 11,498,224 23,057,128 Less than 1 year 1 to 2 years 2 to 5 years > 5 years Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 At 31 December 2024 Loans and borrowings 3,738,060 2,385,415 3,118,794 9,718,156 18,960,425 Trade payables 1,239,748 - - - 1,239,748 License costs payable - 109,079 202,991 - 312,070 Lease liabilities 658,337 825,521 1,055,181 1,062,814 3,601,853 Other financial liabilities 442,311 102,707 - - 545,018 Total 6,078,456 3,422,722 4,376,966 10,780,970 24,659,114 Capital management The Group manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimi sation of the debt and equity balance. The Group makes adjustments to its capital structure, in light of changes in economic and business conditions. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, or issue new shares. No changes were made in the objectives, policies or processes during the years ended 31 December 2025 and 31 December 2024. Equity includes share capital, legal reserve, other statutory reserves and retained earnings and they are measured at QR. 34,515,698 thousand at 31 December 2025 (2024: QR. 32,449,066 thousand). The Group’s management reviews the capital structure of the Group on a semi -annual basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital. The gearing ratio as at 31 December 2025 is 3% (2024: 5%). Gearing ratio The gearing ratio at year end was as follows: 2025 2024 QR.’000 QR.’000 Debt (i) 16,064,400 18,021,277 Bank balances and cash (excluding restricted deposits) (14,926,366) (16,330,449) Net debt 1,138,034 1,690,828 Equity (ii) 34,515,698 32,449,066 Net debt to equity ratio 3% 5%
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 83 39. FINANCIAL RISK MANAGEMENT (CONTINUED) Capital management (continued) Gearing ratio (continued) (i) Debt is the long-term debt obtained and lease liabilities, as detailed in note 30 and 15, respectively. (ii) Equity includes all capital and reserves of the Group that are managed as capital. 40. FAIR VALUES OF FINANCIAL INSTRUMENTS Fair values Set out below is a comparison by class of the carrying amounts and fair value of the Group’s financial instruments that are carried in the consolidated financial statements: Carrying amounts Fair values 2025 2024 2025 2024 QR.’000 QR.’000 QR.’000 QR.’000 Financial assets Financial assets at fair value 985,964 1,069,882 985,964 1,069,882 Trade and other receivables 3,579,103 3,225,826 3,579,103 3,225,826 Bank balances and cash 15,715,427 16,933,408 15,715,427 16,933,408 Financial liabilities Loans and borrowings 12,826,794 15,141,637 12,237,373 14,265,819 Other non-current liabilities 236,879 144,141 236,879 144,141 Derivative financial instruments 198 - 198 - Trade and other payables 3,276,817 2,903,929 3,276,817 2,903,929 The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values : • Cash and short -term deposits, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short -term maturities of these instruments. • Long-term fixed -rate and variable -rate receivables are evaluated by the Group based on parameters such as interest rates, specific country risk factors, and individual creditworthiness of the customer and the risk characteristics of the financed project. B ased on this evaluation, allowances are taken to account for the expected losses of these receivables. At the end of the reporting period, the carrying amounts of such receivables, net of allowances, approximate their fair values. • Fair value of quoted investments is based on price quotations at the end of the reporting period. The fair value of loans from banks and other financial debts, as well as other non -current financial liabilities is estimated by discounting future cash flows using rates applicable for similar risks and maturity profiles. Fair values of unquoted financial assets are estimated using appropriate valuation techniques. • The Group enters into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exc hange forward, contracts for differences and currency swaps. The most frequently applied valuation techniques include forward pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of co unter parties, foreign exchange spot and forward rates and interest rate curves.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 84 40. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED) Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique. Level 1: Quoted prices (unadjusted) prices in active markets for identical assets or liabilities that the Group can access at the measurement date. Level 2: Inputs other than quoted prices included within level 1 that are observable for the assets of liability, either directly or indirectly. Level 3: Unobservable inputs for the asset or liability. The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities at 31 December 2025 and 2024: 31 December 2025 Level 1 Level 2 Level 3 QR.’000 QR.’000 QR.’000 QR.’000 Assets: Financial assets measured at fair value: FVTOCI 576,150 2,869 29,267 544,014 FVTPL 409,814 409,449 365 - 985,964 412,318 29,632 544,014 Liabilities: Other financial liability for which fair value is disclosed Loans and borrowings 12,237,373 - 10,500,524 1,736,849 Derivative financial instruments 198 - 198 - 12,237,571 - 10,500,722 1,736,849 31 December 2024 Level 1 Level 2 Level 3 QR.’000 QR.’000 QR.’000 QR.’000 Assets: Financial assets measured at fair value: FVTOCI 572,057 1,442 16,777 553,838 FVTPL 497,825 497,544 281 - Derivative financial instruments 7 - 7 - 1,069,889 498,986 17,065 553,838 Liabilities: Other financial liability for which fair value is disclosed Loans and borrowings 14,265,819 - 12,827,325 1,438,494 14,265,819 - 12,827,325 1,438,494 There is no transfer from Level 1, 2 and 3 during the financial period. At 31 December 202 5, the Group has notes with a fair value of QR. 10,500,524 thousand (2024: QR. 12,827,325 thousand). The notes are listed on the Irish bond market and the fair value of these instruments is determined by reference to quoted prices in this market. The market for these bonds is not considered to be liquid and consequently the fair value measurement is categorised within level 2 of the fair value hierarchy. In addition, the Group has bank loans with a fair value of QR. 1,736,849 thousand (2024: QR. 1,438,494 thousand) within level 3 of the fair value hierarchy.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 85 40. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED) Fair value hierarchy (continued) For fair value measurements categorised within Level 2 and 3 of the fair value hierarchy, the fair values are determined using appropriate valuation techniques, which include the use of mathematical models, such as discounted cash flow models and option pricing models, comparison to similar instruments for which market observables prices exist and other valuation techniques. Valuation techniques incorporate assumptions regarding discount rates, estimates of future cash flows and other factors. The following table summarises the quantitative information about the significant unobservable inputs used in level 3 fair value measurements for the individually significant investment: Description Fair value at 31 December 2025 Unobservable inputs Value of inputs Relationship of unobservable inputs to fair value QR.’000 Investment in a telecommunication related company classified as FVTOCI 495,757 EV/EBITDA 7.84 times A change in the EV/EBITDA by 10% would increase / decrease the fair value by QR. 44,349 thousand. 41. RELATED PARTY DISCLOSURES Related party transactions and balances Related parties represent associated companies including Government and semi-Government agencies, associates, major shareholders, directors and key management personnel of the Group, and companies of which they are principal owners. In the ordinary course of business, the Group enters into transactions with related parties. Pricing policies and terms of transactions are approved by the Group’s management. The Group enters into commercial transactions with Government related entities in the ordinary course of business in terms of providing telecommunication services. a) Transactions with Government and related entities The Group enters into commercial transactions with the Government and other Government related entities in the ordinary course of business in terms of providing telecommunication services. All these transactions are in the ordinary course of business at normal commercial terms and conditions. Following are the significant balances and transactions between the Company and the Qatar Government and other Government related entities. (i) Trade receivables-net of impairment include an amount of QR. 535,266 thousand (2024: QR. 474,078 thousand) receivable from Government and Government related entities. (ii) The most significant amount of revenue from a Government related entity amounted to QR. 56,284 thousand (2024: QR. 107,813 thousand). (iii) Industry fee (Note 20) pertains to the industry fee payable to CRA, a Government related entity. In accordance with IAS 24 Related Party Disclosures, the Group has elected not to disclose transactions with the Qatar Government and other entities over which the Qatar Government exerts control, joint control or significant influence. The nature of transactions that the Group has with such related parties relates to provision of telecommunication services on normal commercial terms and conditions.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 86 41. RELATED PARTY DISCLOSURES (CONTINUED Related party transactions and balances (continued) b) Transactions with Directors and other key management personnel Key management personnel comprise the Board of Directors and key members of management having authority and responsibility of planning, directing and controlling the activities of the Group. Director’s remuneration of QR. 19,400 thousand was proposed for the year ended 31 December 2025 (2024: QR. 19,400 thousand). The compensation and benefits related to Board of Directors and key management personnel amounted to QR. 354,170 thousand for the year ended 31 December 2025 (2024: QR. 296,355 thousand), and end of service benefits QR. 19,724 thousand for the year ended 31 December 2025 (2024: QR. 21,935 thousand). The remuneration to the Board of Directors and key management personnel has been included under the caption “Employee salaries and associated costs”.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 87 42. PROVISIONS Movements in each class of provision during the financial year are set out below: 2025 2024 Site restoration provision Legal, regulatory, and other provisions (i) Total Site restoration provision Legal, regulatory, and other provisions (i) Total QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Opening balance 228,357 303,787 532,144 219,051 260,470 479,521 Deconsolidation of a subsidiary - - - (7,321) - (7,321) Additional provision during the year 13,456 93,050 106,506 17,499 91,977 109,476 Classified as held for sale (31,566) - (31,566) - - - Reversal of provisions (226) (111,333) (111,559) (32) - (32) Utilisation of provision / Payment - (78,099) (78,099) - (44,179) (44,179) Unwinding of discount 245 - 245 251 - 251 Exchange adjustment 5,459 10,871 16,330 (1,091) (4,481) (5,572) 215,725 218,276 434,001 228,357 303,787 532,144 Non-current 212,396 - 212,396 226,861 - 226,861 Current 3,329 218,276 221,605 1,496 303,787 305,283 215,725 218,276 434,001 228,357 303,787 532,144 (i) Legal, regulatory, and other provisions include provisions relating to certain legal, commercial, and other regulatory related matters, including provisions relating to certain Group subsidiaries. Refer to note 38 for details on the material claims and litigations.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 88 43. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES The preparation of the consolidated financial statements in compliance with IFRS Accounting Standards requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and disclosure of contingent assets and contingent liabilities. Future events may occur which will cause the assumptions used in arriving at the estimates to change. The effects of any change in estimates are reflected in the consolidated financial statements as they become reasonably determinable. Judgements and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Judgements In the process of applying the Group’s accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the consolidated financial statements: Revenue recognition Revenue recognition under IFRS 15 necessitates the collation and processing of very large amounts of data, use of management judgements and estimates to produce financial information. The most significant accounting judgements and source of estimation uncertainty are disclosed below. Judgements in determining the timing of satisfaction of performance obligations Per note 4 , the Group generally recognises revenue over time as it performs continuous transfer of control of these services to the customers. Because customers simultaneously receive and consume the benefits provided by these services and the control transfer takes place over time, revenue is also recognised based on the extent of service transfer/completion of transfer of each performance obligation. In determining the method for measuring progress for these POs, we have considered the nature of these services as well as the nature of its performance. For performance obligations satisfied at a point in time, the Group considers the general requirements of control (i.e. direct the use of asset and obtain substantially all benefits) and the following non - exhaustive list of indicators of transfer of control: • Entity has present right to payment • Customer has legal title • Entity has transferred legal possession • Customer has significant risk and rewards • Customer has accepted the asset In making their judgement, the directors considered the detailed criteria for the recognition of revenue set out in IFRS 15 and, in particular, whether the Group had transferred control of the goods to the customer. Following the detailed quantification of the Group’s liabilit y in respect of rectification work, and the agreed limitation on the customer’s ability to require further work or to require replacement of the goods, the directors are satisfied that control has been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with the recognition of an appropriate warranty provision for the rectification costs. However, the determination of obligations is, for the primary goods and services sold by the Group, not considered to be a critical accounting judgement. Principal versus agent Significant judgements are made by management when concluding whether the Group is transacting as an agent or a principal. The assessment is performed for each separate revenue stream in the Group. The assessment requires an analysis of key indicators, specifically whether the Group: • carries any inventory risk; • has the primary responsibility for providing the goods or services to the customer; and
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 89 43. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED) Judgements (continued) Principal versus agent (continued) • has the latitude to establish pricing; Whether the Group is considered to be the principal or an agent in the transaction depends on analysis by management of both the legal form and substance of the agreement between the Group and its business partners. Scenarios requiring judgement to determi ne whether the Group is a principal or an agent include, for example, those where the Group delivers third-party branded services (such as value added services or TV content) to customers and mobile money service. Determining the lease term In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option. Extension and termination options are included in several leases across various classes of right -of-use assets across the Group. These terms are used to maximise operational flexibility in terms of managing contracts. In cases where lease contracts have indefinite term or are subject to auto renewal, lease term is determined considering the business case and reasonably certain renewal of lease. As a lessee, optional periods are included in the lease term if the Group is reasonably certain it will exercise an extension option or will not exercise a termination option; this depends on an analysis by management of all relevant facts and circumstance s including the leased asset’s nature and purpose, the economic and practical potential for replacing the asset and any plans that the Group has in place for the future use of the asset. Where a leased asset is highly customised (either when initially provided or as a result of leasehold improvements) or it is impractical or uneconomic to replace then the Group is more likely to judge that leas e extension options are reasonably certain to be exercised. The value of the right-of-use asset and lease liability will be greater when extension options are included in the lease term. The lease terms can vary significantly by type and use of asset and geography. In addition, the exact lease term is subject to the non -cancellable period and rights and options in each contract. Generally, lease terms are judged to be the longer of the minimum lease term and: - Between 5 and 10 years for land and buildings (excluding retail), with terms at the top end of this range if the lease relates to assets that are considered to be difficult to exit sooner for economic, practical or reputational reasons. - The customer service agreement length for leases of local loop connections or other assets required to provide fixed line services to individual customers. In most instances the Group has options to renew or extend leases for additional periods after the end of the lease term which are assessed using the criteria above. The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances occurs, which affects this assessment, and that is within the control of the lessee. Estimates The key assumptions concerning the future and other sources of estimation uncertainty at the financial position date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 90 43. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED) Estimates (continued) Impairment of non-financial assets The Group assesses whether there are any indicators of impairment for all non -financial assets at each reporting date. Goodwill and other indefinite life intangibles are tested for impairment annually and at other times when such indicators exist. The factors that the Group considers important which could trigger an impairment review include the following: • significant or prolonged decline in the fair value of the asset; • market interest rates or other market rates of return on investments have increased during the period, and those increases are likely to affect the discount rate used in calculating the asset’s value in use and decrease the asset’s recoverable amount materially; • significant underperformance relative to expected historical or projected future operating results; • significant changes in the manner of use of the acquired assets or the strategy for overall business; and • significant negative industry or economic trends. The Group determines an impairment loss whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount has been determined based on value in use calculations. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset base of the cash-generating unit being tested. The recoverable amount of investment is determined based on the net present value of future cash flows, management assumptions made, including management’s expectations of the investment’s: • growth in earnings before interest, tax, depreciation and amortisation (“EBITDA”), calculated as adjusted operating profit before depreciation and amortisation; • timing and quantum of future capital expenditures; • long term growth rates ranges during discrete period and terminal period; • long-term cash flows and working capital estimates; and • selection of discount rates to reflects the risks involved. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes. Refer to note 17 for the impairment assessment for investment in an associate. In the case of goodwill and intangible assets with indefinite lives, at a minimum, such assets are subject to an annual impairment test and more frequently whenever there is an indication that such asset may be impaired. This requires an estimation of the value in use of the cash -generating units to which the goodwill is allocated. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the cash -generating unit and to choose a suitable discount rate in order to calculate the present value of those cash flows (Note 14). Useful lives of property, plant and equipment The Group’s management determines the estimated useful lives of its property, plant and equipment and investment properties based on the period over which the assets are expected to be available for use. The estimated useful lives of property, plant and equipment an d investment properties are reviewed at least annually and are updated if expectations differ from previous estimates due to physical wear and tear and technical or commercial obsolescence on the use of these assets. It is possible that future results of operations could be materially affected by changes in these estimates brought about by changes in factors mentioned above. But it is not considered to be a significant risk of material adjustment to the carrying values of property, plant and equipment in the year to 31 December 2025 if these estimates were revised.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 91 43. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES (CONTINUED) Estimates (continued) Provision and contingent liabilities The Group’s management determines pr ovision on best estimate of the expenditure required to settle the present obligation as a result of the past event at the reporting date (Note 42). The Group’s management measures contingent liabilities as a possible obligation depending on whether some uncertain future event occurs or a present obligation but payment is not probable or the amount cannot be measured reliably (Note 38). Uncertain tax exposures In certain circumstances, the Group may not be able to determine the exact amount of its current or future tax liabilities or recoverable amount of the claim refund due to ongoing investigations by, or discussions with the various taxation authorities. In determining the amount to be recognised in respect of uncertain tax liability or the recoverable amount of the claim for tax refund related to uncertain tax positions, the Group applies similar considerations as it would use in determining the amount of a provision to be recognised in accordance with IFRIC 23 Uncertainty over Income Tax Treatment . Fair value of unquoted equity investments Where the fair value of financial assets and financial liabilities recorded in the consolidated statement of financial position cannot be derived from active markets, they are determined using valuation techniques including the discounted cash flows model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judg ement is required in establishing fair values. The judg ements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments (Note 40). Calculation of loss allowance The loss allowances for financial assets are based on assumptions about risk of default and expected loss rates. The group uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Group’s past history and existing market conditions, as well as forward-looking estimates at the end of each reporting period. Details of the key assumptions and inputs used are disclosed in (Note 39). Fair value of assets acquired and liabilities assumed at acquisition date The fair value of assets acquired and liabilities assumed at acquisition date as part of a business combination is a determined based on notional purchase price allocation (NPPA) in accordance with IFRS 3 ‘Business combinations’. This require s management to make significant estimates as part of determining the fair values of the identifiable assets acquired and liabilities assumed. The Group engages independent valuers in order to determine the fair value of the retained interest and the fair values that formed part of the notional purchase price allocation.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 92 44. SUMMARISED FINANCIAL INFORMATION OF SUBSIDIARIES WITH MATERIAL NON – CONTROLLING INTERESTS The following table summari ses the information relating to each of the Group’s subsidiaries that have material non-controlling interests, before any intra-group eliminations: Asiacell NMTC* Ooredoo Oman QR.’000 QR.’000 QR.’000 31 December 2025 Non-current assets 5,296,740 12,080,154 3,353,374 Current assets 1,804,611 5,950,528 590,126 Non-current liabilities (609,956) (4,151,944) (408,126) Current liabilities (2,229,398) (6,532,398) (1,126,536) Net assets 4,261,997 7,346,340 2,408,838 Carrying amount of NCI 1,531,798 1,608,108 1,087,429 Revenue 5,582,577 9,190,251 2,291,684 Profit 1,432,318 1,171,849 8,605 Profit allocated to NCI 514,787 250,143 4,269 Asiacell NMTC* Ooredoo Oman QR.’000 QR.’000 QR.’000 31 December 2024 Non-current assets 4,550,293 9,835,235 3,400,287 Current assets 2,215,613 5,582,269 576,982 Non-current liabilities (478,862) (3,703,165) (382,302) Current liabilities (2,174,564) (5,063,782) (1,122,956) Net assets 4,112,480 6,650,557 2,472,011 Carrying amount of NCI 1,478,061 1,439,940 1,115,137 Revenue 5,163,592 8,430,527 2,380,989 Profit 1,086,193 789,673 112,214 Profit allocated to NCI 390,387 182,718 51,120 * This includes the Group’s subsidiaries with material non -controlling interest (NCI) within NMTC and its subsidiaries (Ooredoo Algeria, Ooredoo Tunisia and Ooredoo Palestine) before any intra-group eliminations.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 93 45. SEGMENT INFORMATION Information regarding the Group’s reportable segments is set out below in accordance with IFRS 8 “Operating Segments”. IFRS 8 requires reportable segments to be identified on the basis of internal reports that are regularly reviewed by the Group’s chief operating decision maker (“CODM”) , which is the “ Group Executive Management” (GEM), and used to allocate resources to the segments and to assess their performance. Further, major decisions taken by the GEM are finally approved by the Board of Directors in line with the decision rights manual (DRM). The Group is mainly engaged in a single line of business, being the supply of telecommunications services and related products. The majority of the Group’s revenues, profits and assets relate to its operations in the MENA. Outside of Qatar, the Group opera tes through its subsidiaries and associates and major operations that are reported to the Group’s CODM are considered by the Group to be reportable segments. Revenue is attributed to reportable segments based on the location of the Group companies. Inter-segment sales are charged at arms’ length prices. For management reporting purposes, the Group is organised into business units based on their geographical area covered, and has six reportable segments as follows: 1. Ooredoo Qatar is a provider of domestic and international telecommunication services within the State of Qatar; 2. Asiacell is a provider of mobile telecommunication services in Iraq; 3. OHA (considered a major joint venture) is a provider of telecommunication services such as cellular services, fixed telecommunications, multimedia, data communication and internet services in Indonesia; 4. Ooredoo Oman is a provider of mobile and fixed telecommunication services in Oman; 5. Ooredoo Algeria is a provider of mobile telecommunication services in Algeria; and 6. Ooredoo Kuwait is a provider of mobile and ISP services in Kuwait. Management monitors the operating results of its operating subsidiaries separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss of these reporta ble segments. Transfer pricing between reportable segments are on an arm’s length basis in a manner similar to transactions with third parties.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 94 45. SEGMENT INFORMATION (CONTINUED) Operating segments The following tables present revenue and profit information regarding the Group’s operating segments for the year ended 31 De cember 2025 and 2024: Year ended 31 December 2025 Ooredoo Qatar Asiacell Ooredoo Algeria Ooredoo Oman Ooredoo Kuwait OHA* Total reportable segments Others Adjustments Adjustments for OHA** Total as reported QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Revenue Revenue from rendering of telecom services 6,755,072 5,570,459 3,297,012 2,098,696 2,535,621 4,089,994 24,346,854 2,725,208 - (4,089,994) 22,982,068 Sale of telecommunications equipment 52,623 - 3,914 144,216 715,338 9,372 925,463 630,753 - (9,372) 1,546,844 Revenue from use of assets by others 5,874 11,881 - 46,992 474 53 65,274 9,761 - (53) 74,982 Inter-segment 425,411 237 85 1,780 1,760 - 429,273 556,446 (985,719) (i) - - Total revenue 7,238,980 5,582,577 3,301,011 2,291,684 3,253,193 4,099,419 25,766,864 3,922,168 (985,719) (4,099,419) 24,603,894 Timing of revenue recognition At a point in time 413,518 - 3,914 144,216 715,338 9,372 1,286,358 678,854 (408,996) (9,372) 1,546,844 Over time 6,825,462 5,582,577 3,297,097 2,147,468 2,537,855 4,090,047 24,480,506 3,243,314 (576,723) (4,090,047) 23,057,050 7,238,980 5,582,577 3,301,011 2,291,684 3,253,193 4,099,419 25,766,864 3,922,168 (985,719) (4,099,419) 24,603,894 Results Segment profit before tax*** 2,586,940 1,697,757 842,322 42,043 492,583 527,666 6,189,311 538,183 (423,818) (ii) (527,666) 5,776,010 Depreciation and amortisation 974,920 881,308 690,019 598,940 515,020 1,292,865 4,953,072 539,495 304,050 (iii) (1,292,865) 4,503,752 Net finance costs 123,348 12,879 46,948 27,706 3,232 323,292 537,405 34,016 - (323,292) 248,129
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 95 45. SEGMENT INFORMATION (CONTINUED) Operating segments (continued) Year ended 31 December 2024 Ooredoo Qatar Asiacell Ooredoo Algeria Ooredoo Oman Ooredoo Kuwait OHA* Total reportable segments Others Adjustments Adjustments for OHA** Total as reported QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Revenue Revenue from rendering of telecom services 6,675,426 5,152,056 2,833,148 2,185,071 2,362,611 4,210,468 23,418,780 2,753,003 - (4,210,468) 21,961,315 Sale of telecommunications equipment 60,005 - 6,103 154,838 766,766 5,890 993,602 570,394 - (5,890) 1,558,106 Revenue from use of assets by others 13,600 11,332 - 38,869 475 - 64,276 11,120 - - 75,396 Inter-segment 374,438 204 64 2,211 1,965 - 378,882 553,438 (932,320) (i) - - Total revenue 7,123,469 5,163,592 2,839,315 2,380,989 3,131,817 4,216,358 24,855,540 3,887,955 (932,320) (4,216,358) 23,594,817 Timing of revenue recognition At a point in time 430,640 - 6,103 154,838 766,766 5,890 1,364,237 614,716 (414,957) (5,890) 1,558,106 Over time 6,692,829 5,163,592 2,833,212 2,226,151 2,365,051 4,210,468 23,491,303 3,273,239 (517,363) (4,210,468) 22,036,711 7,123,469 5,163,592 2,839,315 2,380,989 3,131,817 4,216,358 24,855,540 3,887,955 (932,320) (4,216,358) 23,594,817 Results Segment profit before tax*** 2,507,260 1,295,285 563,248 239,949 131,552 507,034 5,244,328 551,408 (413,113) (ii) (507,034) 4,875,589 Depreciation and amortisation 997,551 789,432 612,386 602,152 497,268 1,320,838 4,819,627 516,647 302,140 (iii) (1,320,838) 4,317,576 Net finance costs 148,997 8,759 45,343 27,460 (1,557) 354,874 583,876 45,725 - (354,874) 274,727
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 96 45. SEGMENT INFORMATION (CONTINUED) Operating segments (continued) * OHA proportionate share of results is included in “Others” column as part of “Segment profit before tax” line item to reconcile to the total reported numbers. The “OHA” column is to present the proportionate financial information of the joint venture as reviewed by the CODM. The Group’s share of IOH operations is equal to 32.8%. ** "Adjustment for OHA " column represents the adjustments made on OHA numbers being a joint venture to reconcile with the total reported. *** Segment profit loss before tax is determined after deducting all expenses attributable to the segment including depreciation and amortisation and finance cost. (i) Inter-segment revenues are eliminated on consolidation. (ii) The adjustments relating to segment profit before tax are certain amortisation, impairment and depreciation, which only arise on consolidation and are not included within the segment profit before tax amount of any individual segment. The amounts are as follows: 2025 2024 QR.’000 QR.’000 Amortisation of intangibles (304,050) (302,140) Impairment of intangible assets and goodwill (119,768) (110,973) (423,818) (413,113) (iii) amortisation relating to additional intangibles identified from business combination was not considered as part of “Depreciation and Amortisation” in reportable segments.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 97 45. SEGMENT INFORMATION (CONTINUED) Operating segments (continued) The following table presents segment assets of the Group’s operating segments as at 31 December 202 5 and 2024. Ooredoo Qatar Asiacell Ooredoo Algeria Ooredoo Oman Ooredoo Kuwait OHA* Total reportable segments Others Adjustments Adjustment for OHA** Total as reported QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Segment assets (i) At 31 December 2025 15,942,711 6,963,472 6,218,069 3,911,798 4,919,724 9,367,563 47,323,337 15,351,865 10,539,527 (9,367,563) 63,847,166 At 31 December 2024 17,980,414 6,628,032 4,463,852 3,977,124 4,622,375 9,441,049 47,112,846 13,509,993 10,761,726 (9,441,049) 61,943,516 Capital expenditure (ii) At 31 December 2025 652,454 1,507,366 1,635,371 472,392 309,276 964,587 5,541,446 1,244,844 - (964,587) 5,821,703 At 31 December 2024 614,078 741,024 539,168 561,214 276,705 758,113 3,490,302 589,798 - (758,113) 3,321,987 * OHA proportionate share of results is included in “Others” column as part of “Segment profit before tax” line item to reconci le to the total reported numbers. The “OHA” column is to present the proportionate financial information of the joint venture as reviewed by the CODM. The Group’s share of IOH operations is equal to 32.8%. ** "Adjustment for OHA " column represents the adjustments made on OHA numbers being a joint venture to reconcile with the total reported. Note: (i) Goodwill and other intangibles arising from business combination amounting to QR. 10,539,527 thousand (2024: QR. 10,761,726 thousand) were not considered as part of segment assets. (ii) Capital expenditure consists of additions to property, plant and equipment and intangibles excluding goodwill and assets from business combinations.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 98 46. CONTRIBUTION TO SOCIAL AND SPORTS FUND According to Qatari Law No. 13 for the year 2008 and the related clarifications issued in January 2010, the Company is required to contribute 2.5% of its annual net profits to the state social and sports fund. The clarification relating to Law No. 13 requires the payable amount to be recognised as a distribution of income. Hence, this is recognised in the statement of changes in equity. During the year, the Group appropriated an amount of QR. 45,116 thousand (2024: QR. 28,060 thousand) representing 2.5% of the net profit generated from Qatar Operations. 47. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities. 1 January 2025 Financing cash flows (i) Non-cash changes (ii) Other changes (iii) 31 December 2025 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Loans and borrowings (Note 30) 15,091,309 (2,356,939) - 35,275 12,769,645 Deferred financing costs (Note 30) (112,654) (831) 23,823 (6,367) (96,029) Lease liabilities (Note 15) 2,879,640 (681,181) 1,368,310 (329,163) 3,237,606 1 January 2024 Financing cash flows (i) Non-cash changes (ii) Other changes (iii) 31 December 2024 QR.’000 QR.’000 QR.’000 QR.’000 QR.’000 Loans and borrowings (Note 30) 12,396,581 2,694,995 - (267) 15,091,309 Deferred financing costs (Note 30) (123,433) (24,096) 23,730 11,145 (112,654) Lease liabilities (Note 15) 3,746,267 (701,591) 1,148,892 (1,313,928) 2,879,640 Notes: (i) The financing activities in the statement of cash flows mainly include the cash flows from loans and borrowings and other non-current liabilities. (ii) The non-cash changes pertain to the amortisation of deferred financing costs. (iii) Other changes include exchange adjustments and adjustment related to deconsolidation of subsidiary in 2024.
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Ooredoo Q.P.S.C. Consolidated financial statements for the year ended 31 December 2025 Notes to the consolidated financial statements (All amounts are expressed in Qatari Riyals unless otherwise stated) 99 48. SIGNIFICANT ARRANGEMENT Ooredoo, Zain and TASC Towers Holding create an independent tower company comprising up to 30,000 towers. Ooredoo and Zain have announced on 5 December 2023 the signing of definitive agreements between Ooredoo Group, Zain Group and TASC Towers Holding (“TASC”) to create the largest tower company in the MENA region, in a cash and share deal. Both Ooredoo and Zain will retain their respective active infrastructure, including wireless communication antennas, intelligent software, and intellectual property with respect to managing their telecom networks. The phased implementation, tailored for each market and adhering to the regulatory environment, is subject to regulatory approvals, ensuring a seamless transition of operations. Ooredoo’s tower network in Oman is following a stand-alone process. As at 31 December 2025, regulatory approval for the transaction has been obtained in Qatar. Accordingly, the assets and directly associated liabilities relating to the Qatar tower operations meet the criteria for classification as held for sale in accordan ce with IFRS 5 and have been classified as such in the consolidated financial statements. For the remaining markets, as at 31 December 2025, the related assets and liabilities in those markets do not meet the held for sale criteria and continue to be presented within their respective line items in the consolidated financial statements. 49. EVENTS AFTER THE REPORTING PERIOD On 18 January 2026, subsequent to the reporting date, the Group acquired Q Data QFZ LLC, with control transferring on that date. The acquisition constitutes a business combination and is a non - adjusting event after the reporting period. Accordingly, no adj ustments have been made to the consolidated financial statements as at 31 December 2025. The acquisition will be accounted for in the 2026 consolidated financial statements. As at the date of authorisation of these financial statements, the purchase price allocation had not been completed and will be disclosed in the period in which the acquisition is recognised.