This article first appeared on GuruFocus.
Release Date: October 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Ooredoo QPSC (DSMD:ORDS) reported strong financial results with high single-digit growth in both EEA and net profit, at 9% and 8% respectively.
The company maintains a robust cash position of just under 16 billion rials, providing significant financial flexibility.
Ooredoo QPSC (DSMD:ORDS) announced an increase in their target dividend payout ratio to 50%-70% of normalized net profit, reflecting confidence in their business.
The company’s data center vertical, CynTES, has established a market-leading position in the MENA region with 13 active data centers and a total installed capacity of 20 megawatts.
Ooredoo QPSC (DSMD:ORDS) continues to expand its fintech operations, maintaining its market leadership in Qatar and showing strong growth in Oman with a 30% month-on-month increase.
Free cash flow decreased by 11% to just over 5 billion rials due to strategic CapEx acceleration, impacting cash flows.
Revenue in Oman and Palestine faced market-specific challenges, partially offsetting overall growth.
The company’s performance in Oman has been weaker, with a highly congested market due to multiple operators affecting profitability.
There is ongoing regulatory uncertainty in Iraq regarding the potential introduction of a fourth operator, which could impact market dynamics.
The expansion of data center capacity in Qatar faces challenges, with major government-sponsored projects in the UAE and KSA potentially impacting competitive positioning.
Q: What are your expectations for Q4 2025, given that you’re tracking at the top end of your guidance for revenue and EBITDA? Also, what can we expect for 2026? A: We are conservative in our planning and guidance due to the inherent volatility in some of our markets. If we continue on our current trajectory, we will likely be at the top end of our guidance. We have not issued official guidance for 2026 yet, as we are still in the planning and budgeting phase, which needs to be ratified by the board.
Q: Why did the dividend payout ratio not start at 60% instead of 50%, given your conservative management approach? A: We have increased our dividend by 160% over the last few years and have been at the top of our previous range. The new range of 50% to 70% reflects our commitment to maintaining a healthy balance sheet and having the flexibility for accelerated growth, both organic and inorganic.
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Q: The growth in Iraq seems lower compared to peers. What are you seeing in the market, and are there any initiatives to drive further growth? A: While our customer base growth might be slightly lower, we focus on revenue market share and EBITDA margin. We prioritize capturing healthy revenue rather than engaging in aggressive customer acquisition strategies that might not be sustainable.
Q: Can you provide an update on the tower deal and any expected equalization payments? A: We are awaiting one regulatory approval in Qatar and have received verbal assurance that everything is okay. The equalization payments will depend on the rollout speed and market growth. We expect the transaction to be positively accretive once fully closed.
Q: What challenges do you face in expanding your data center capacity in Qatar, especially with expansions in UAE and KSA? A: We are focused on growth through hyper scalers and have increased our installed capacity significantly in Qatar. While major government-sponsored projects are underway in UAE and KSA, we are part of similar initiatives in Qatar and expect significant expansion by next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.