Qatar-based Ooredoo Group has reported an 18% slump in full year profit for 2018, partly as a result of the ongoing impact of Indonesia's SIM registration regulations on earnings at subsidiary Indosat Ooredoo.
The operator also blamed foreign exchange losses and declining revenues in Algeria for the decline in profit to 1.56 billion riyals ($428.5 million).
Revenue meanwhile fell 8% to 29.92 billion riyals, largely as a result of the decline in revenue at Indosat Oreedoo from 8.1 billion riyals to 5.9 billion riyals.
The introduction of the mandatory SIM registration policy in 2017 is having an ongoing impact on the group's earnings in the market. But the company recorded 11% quarter-on-quarter revenue growth in Q4 as the company took steps to manage the transition to a new market environment.
Oreedoo's subsidiary in Myanmar reported a 5% decline in revenue to 1.3 billion riyals, as a result of depreciation of the Myanmar kyat and the arrival of the scene of a new rival in the form of Mytel, the joint venture between Vietnam's Viettel and local business interests.
But ebitda increased by 29% to 197 million riyals and the fast growing subsidiary increased its customer base by 21% to 9.6 million.
“In Indonesia, we are beginning to witness a positive shift in market dynamics, with reduced churn rates and better customer loyalty. We reported two consecutive quarters of revenue growth, and put into place a strong strategy to capture further growth in the new market environment.”
Image: iStock Photo