Ooredoo Group has recorded a 89 percent reduction in its 2014 fourth-quarter profit to QR55 million from QR510 million in the same quarter a year earlier despite a 12 percent increase in its total subscriber base, to a figure of 107 million.
The group's full year EBITDA margin also saw a 39 percent decline, standing at QR12,948 million compared to QR14,640 million in 2013. Ooredoo attributed the decline in its EBITDA to a number of factors, primarily its continuous strategic investment into its broadband networks, global brand roll-out and customer acquisition costs. In addition, aggressive price competition in Iraq and the security situation in the country along with start-up costs in Myanmar and the losses from currency depreciation in Indonesia also impacted the year's EBITDA and margin, said Ooredoo.
Ooredoo however, added that its strategy to become a data-centric business made significant progress following the investment the business has made in its broadband networks and data infrastructure. Ooredoo has invested in its 4G networks across five out of its nine markets. Algeria, Iraq, Qatar and Tunisia are all markets where Ooredoo is the market leader in data customer share. According to Ooredoo, last year’s data revenue represented 25% of the group revenue, driven by the company's efforts to deliver innovative new bundles and data offers for customers.
Ooredoo is rapidly positioning itself at the heart of the digital future of our customers. Mobile infrastructure is an essential enabler of a country's economic prosperity, particularly in developing markets. Our financial results for 2014, despite the challenges we have faced in some of our markets, demonstrate how Ooredoo is increasingly playing its role in supporting the economic growth in our markets.
Ooredoo made significant progress against its strategy during 2014 despite facing sustained, high levels of competition, adverse currency movements and the current security situation in Iraq. "We continue to invest in our infrastructure to target market leadership by offering the best network experience. Data revenue continues to grow and now represents a quarter of group revenue.