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Wed 23 Jul 2014 06:38 PM

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Qatar's Ooredoo reports 11% drop in Q2 net profit

Telecom operator says it made more than $224m profit in the three months to June 30

Qatar's Ooredoo reports 11% drop in Q2 net profit

Qatari telecom operator Ooredoo reported a 11 percent drop in second-quarter profit on Wednesday.

The former monopoly, which operates in about 15 countries across the Middle East, Africa and Asia, made a net profit of QR817 million ($224.4 million) in the three months to June 30, down from QR923 million in the year-earlier period.

Two analysts polled by Reuters had forecast Ooredoo would make a quarterly profit of QR544.2 million and QR623.3 million respectively.

It is the third quarter in the last four in which Ooredoo has reported declining net profit.

In the three months to June 30, revenue dropped 3 percent year-on-year to QR8.4 billion as strong performances by its businesses in Qatar, Oman and Algeria were overshadowed by lower contributions fromIndonesia, Kuwait and Iraq.

Iraq has been suffering from political turmoil in recent months after the Islamic State militant group seized large swathes of the country.

While it did not provide a quarterly breakdown, revenue from its Iraq unit, Asiacell, dropped 9.6 percent year-on-year to QR1.6 billion in the second quarter, according to Reuters calculations based on financial statements.

Ooredoo was awarded a licence for Myanmar in February and the firm has paid the first instalment towards this, it said in the statement without elaborating. It plans to commence operations in the Asian nation in the third quarter, it added.

The firm said it had 93.9 million customers across the group at the end of June, up 2 percent on the same point of 2013.

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