Ooredoo Posts 5% Revenue Growth Despite Algeria Legal Provision and Regional Logistics Headwinds
The Qatari telecom operator reported expanded margins and strong cash flow in H1 2026, though device sales were constrained by regional supply disruptions.
Solid Revenue Growth Amid Complex Regional Environment
Ooredoo Q.P.S.C. (ORDS) reported revenue of QAR 12.5 billion for the first half of 2026, an increase of nearly 5% year-over-year, according to Group CEO Aziz Aluthman Fakhroo during the company's earnings call. Growth was primarily driven by Algeria, Tunisia, and Iraq, supported by customer additions and continued demand for data services (earnings call, 2026-08-03).
The Qatar-based telecommunications operator, with a market capitalization of approximately $12 billion, delivered these results despite what management characterized as "a more complex regional backdrop" and logistics constraints that impacted device sales across several markets.
Margin Expansion and Profitability Improvements
EBITDA grew 7% to QAR 5.5 billion, with the EBITDA margin improving by 1.2 percentage points to 44.4%. The margin expansion reflected "operating leverage, disciplined cost management and changes in revenue mix across select markets," Fakhroo said (earnings call, 2026-08-03).
Second-quarter performance showed even stronger momentum, with EBITDA increasing 8% and margin improving by 2 percentage points to 45%.
Reported net profit declined nearly 5% due to a one-off legal provision recorded in Algeria. However, on a normalized basis excluding this item, net profit increased approximately 4% to nearly QAR 2 billion, demonstrating what management termed "the resilience of the business and continued improvement in operational performance" (earnings call, 2026-08-03).
Strong Cash Generation and Conservative Balance Sheet
Free cash flow increased approximately 8% in the first half to QAR 3.9 billion, reinforcing the group's financial strength. The company ended the period with net debt to EBITDA of just 0.6x, well below board guidance, with liquidity supported by nearly QAR 11 billion in cash and QAR 6.4 billion of undrawn committed facilities (earnings call, 2026-08-03).
Ooredoo's customer base grew over 4% year-over-year to 54 million subscribers. Including its Indosat Ooredoo Hutchison (IOH) joint venture, the total customer base reached 147.5 million.
Strategic Platform Progress
The company's Syntys data center platform continued expanding, generating QAR 112 million in revenue and QAR 46 million in EBITDA during the first half, following the acquisition of Q Data in Qatar. Management emphasized the platform's positioning to support "cloud, AI and digital infrastructure requirements across the region" (earnings call, 2026-08-03).
Ooredoo's fintech platform processed nearly QAR 6 billion in international remittances and served more than 500,000 users, with Qatar remaining the largest market and Oman building momentum. Expansion plans include launches in Tunisia and Iraq.
Geographic Performance Highlights
Algeria delivered the strongest growth with revenue up 16% and EBITDA increasing over 15%, though margin compressed to around 44% due to 5G frequency costs. The customer base expanded 10% to nearly 16 million subscribers.
In core markets, Qatar maintained profitability with EBITDA margin expanding by 1 percentage point to approximately 53%, while Kuwait and Oman faced device-related revenue pressure from regional logistics constraints, though service revenues remained resilient.
Management maintained full-year guidance, citing continued resilience in connectivity demand and momentum across the business.
This article was generated by MarginX from the earnings call on 2026-08-03. It is not investment advice.