Qatari telecom operator Ooredoo reported a net profit of QR55 million ($15.1 million) in the fourth quarter of 2014 as against a net profit QR510 million ($136 million) during the same period last year, marking a drop of 89 per cent.

Qatar's former monopoly, which operates in about 15 countries across the Middle East, Africa and Asia, was hit by foreign exchange losses in Indonesia and higher costs in its Myanmar and Algerian business.

The majority state-owned company has now posted declining profits in four of the previous six quarters, impacted by issues at its foreign units, notably in Iraq, where many areas of the country have faced significant security issues related to the emergence of Islamic State.

Without the impact of foreign exchange losses in Indonesia, start-up costs in Myanmar and one-off investment costs in Algeria, Ooredoo said its quarterly net profit drop would have been 22 percent lower.

Its overall revenue for the final three months of 2014 was flat at QR8.37 billion ($2.29 billion).

Some of Ooredoo's difficulties in the fourth quarter had already been trailed, after its Kuwaiti business, under which its Algerian operations fall, said last month that all profit for the final quarter of 2014 had been wiped out.
The group's fourth-quarter numbers also dragged down its full-year earnings, which slipped 17 percent year on year to QR2.13 billion, having been flat to 2013 after nine months.

Ooredoo reported its annual revenue for 2014 at QR33.2 billion ($9 billion), which was down 2 per cent compared to the 2013 revenue of QR33.85 billion.

The operator kept its dividend payout in line with the previous year, according to Thomson Reuters data. Ooredoo will pay out a dividend of 40 per cent for 2014, a statement said.

Ooredoo’s customer base increased by 12 per cent to reach 107 million, driven by the Indonesian, Iraqi, Kuwaiti, Myanmar and Algerian markets, according to the statement.

“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,” said Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, chairman of Ooredoo.

“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.

“Our networks, services and investments into new growth opportunities in Myanmar and next generation networks in Iraq, Qatar and Algeria all demonstrate the transformative power of Ooredoo for our customers and their communities. These investments into new technologies and future business will ultimately benefit our shareholders as well.”

Dr Nasser Marafih, Group chief executive officer of Ooredoo said: “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. The acceleration of our strategy execution during 2014 puts Ooredoo in a good position to generate and capture value for our shareholders and our more than 107 million customers,” he added. – TradeArabia News Service and Reuters