Ooredoo International Finance Limited Regulatory News (62AO)

Ooredoo Q.S.C.

Ooredoo Delivers Net Profit of QAR 2.1 billion in 9M 2014

Total customer base increases by 7% to 95.7 million

Doha, Qatar, 27 October 2014: Ooredoo Q.S.C. ("Ooredoo") - Ticker: ORDS.QA today announced results for the nine months ended 30 September 2014.

Financial Highlights:

· Earnings per share in 9M 2014 stood at QAR 6.49 (9M 2013: 6.46 QAR )

Overview:

· 9M 2014 Group revenue down 3% to QAR 24,839 million: positive performances in Qatar, Oman and Algeria; challenging market environments in Indonesia, Kuwait, Iraq and Tunisia. Excluding the impact of Indonesian Foreign Exchange, Group revenue would have increased by 1%

· EBITDA of QAR 10,234 million and EBITDA margin of 41% supported by group-wide cost management and increasing infrastructure sharing initiatives. Excluding the impact of Indonesian Foreign Exchange and Myanmar start-up costs, EBITDA would have decreased by 3% compared to the reported 9% reduction

· Net profit to Ooredoo shareholders for 9M 2014 stood at QAR 2.1 billion. Excluding the impact of Foreign Currency gains and losses in Opcos and Myanmar start-up costs and IM2 provision, Net Profit to Ooredoo would have grown by 3%

· Number of customers increased by 7% to reach 95.7 million

· Launch of 3G network in Myanmar in mid-August attracted more than 1 million customers in less than three weeks following launch

· With regards to the IM2 court case in Indonesia, which is still a pending legal process where no formal notification has been received, Indosat has taken a prudent provision of QAR 416 million1

· "Nawras" to re-brand to "Ooredoo" in October: the seventh operation to use the Ooredoo brand

As at 30 September 2014, the Group's consolidated customer base stood at 95.7 million (9M 2013: 89.6 million), representing year-on-year growth of 7%. Group revenue for the nine months 2014 decreased to QAR 24,839 million (9M 2013: QAR 25,477 million). Group EBITDA decreased by 9% to QAR 10,234 million (9M 2013: QAR 11,225 million) with EBITDA margin decreasing to 41% (9M 2013: 44%) due to lower revenues and the continued investment across the business into customer acquisition and retention, global brand roll-out, service launches and customer experience. The Group continues to invest in its start-up operation in Myanmar, its recovery strategy in Ooredoo Kuwait and has been impacted during the period by the current security situation in Iraq.

Net profit attributable to Ooredoo shareholders for the nine months 2014 was QAR 2,079 million (9M 2013: QAR 2,069 million). On a quarterly basis, Ooredoo Group delivered an 11% increase in net profit attributable to Ooredoo shareholders to QAR 375 million compared to the third quarter of 2013.

Commenting on the results, His Excellency Sheikh Abdullah Bin Mohammed Bin Saud Al-Thani, Chairman of Ooredoo said:

"Ooredoo has delivered a solid set of results despite the challenges facing some of its markets. The increasing use of data by our customers and Ooredoo's move into new service capabilities such as financial transactions demonstrate the enormous power of our best-in-class data networks. They offer transformative means of communication to individuals, communities and businesses across our markets and illustrate how Ooredoo is progressing its strategy. Our networks and services continue to bring positive change across our markets."

Also commenting on the results Dr. Nasser Marafih, Group Chief Executive Officer of Ooredoo said:

"Our results for the nine months demonstrate the clear progress of our strategy to create a world-leading, data centric business. We are increasingly building a growing level of revenue from data as our customers consume more data based services from their fixed and mobile communication devices. Strong results were achieved in our domestic market in Qatar, in Oman where the "turbocharging" of the network is delivering strong numbers and in Algeria, where we benefit from the most advanced 3G network. Despite the progress of our strategy, some of our markets continue to experience a range of challenges e.g. in Indonesia, Iraq, Tunisia and the Kuwaiti market. However, we will continue to make the appropriate investments into our core areas of growth to ensure long-term shareholder value. Our investment in our networks, services and branding will ensure that Ooredoo will continue to differentiate and deliver value for shareholders and customers alike."

[1] Please see Notes to Editors for background to the IM2 case

Review of Operations

The Group's operational performance can be summarized as follows:

Ooredoo Qatar

Ooredoo Qatar delivered strong results during the period; in particular, growing revenue and increased market share from data services. Revenue was up by 9% year-on-year to QAR 5,286 million (9M 2013: QAR 4,860 million), while EBTIDA performance increased by 11% year-on-year to QAR 2,626 million. Consolidated customers increased by 8% to 3.0 million - hitting this impressive milestone for the first time in the company's history.

Ooredoo Qatar continued to develop its world-class network for Qatar, launched Qatar's first 4G Roaming service and delivered an upgraded range of data packs in the period. Ooredoo Fibre continued to reach new customers, passing 298,000 homes and connecting 180,000 customers.

The company is continuing to enhance its support for Qatar's dynamic business and enterprise sector, investing in leading-edge infrastructure to support B2B services. Ooredoo completed the first phase of development of its newest next-generation smart data centre, QDC 5, at the close of the quarter. This facility is one of the most advanced in the region and will enable companies to deploy the latest generation of services quickly and cost-effectively, enhancing Ooredoo Qatar's role as a primary partner for leading enterprises.

Indosat - Indonesia

Indosat continued to face an intensely, although stable, competitive market place, reflected in lower revenues for the period at QAR 5,501 million (9M 2013: QAR 6,459 million) and EBITDA decreasing by 18% to QAR 2,504 million (9M 2013: QAR 3,060 million) due to increased cost of sales and operational expenditure. Mobile data and value added services continued to generate significant year-on-year revenue growth. Indosat's EBITDA margin decreased to 46% compared to 47% for the nine months 2013. In local currency revenue has been flat while EBITDA decreased by 4%. Net loss for the nine months was QAR (375) million (9M 2013: QAR (536) million). Indosat continued to invest in rolling out its broadband network, bringing Ooredoo's world-leading data-based products and services to a greater percentage of the population. As at 30 September 2014, Indosat's consolidated customer base stood at 54 million, a similar level as in the previous year.

Wataniya Telecom

Wataniya Telecom ("National Mobile Telecommunications Company K.S.C.") encompasses the Ooredoo Group's businesses in Kuwait, Tunisia, Algeria, the Maldives and Palestine. Wataniya Telecom released nine month 2014 financial results on 22 October 2014.

Revenue for the nine months 2014 increased 3% to QAR 7,285 million (9M 2013: QAR 7,047 million) while EBITDA stood at QAR 2,621 million(9M 2013: QAR2,760 million). The total customer base increased to 22.3 million, an increase of 13% (9M 2013: 19.7 million). Net profit for Wataniya Telecom was QAR 757 million (9M 2013: QAR 995 million).

Ooredoo Algeria has maintained its positive momentum demonstrated in the first half of 2014 as it aggressively rolls out its 3G services. Customers grew by 23% to 11.4 million in the nine months of 2014 compared to the same period in 2013. Revenues increased by 22% to QAR 3,507 million compared with revenues of QAR 2,879 million for the same period in 2013. EBITDA increased by 14% to QAR 1,366 million. Foreign Exchange movements impacted the Net Profit for the nine months of 2014, resulting in Net Profit of QAR 446 million compared to QAR 508 million for the same period in 2013.

Ooredoo Kuwait continued to win back market share with its customer base increasing by 26% for the nine months to 2014 to 2.4 million following the successful rebranding of the business to Ooredoo in Q2 2014. Revenues decreased by 16% to QAR 1,615 million compared to the nine months of 2013 and EBITDA decreased by 35% to QAR 340 million. Net Profit was QAR 69 million compared to Net Profit for the same period of 2013 of QAR 171 million.

Ooredoo Tunisia performed robustly during the period as the country continued to suffer political and economic unrest. The customer base at the end of nine months of 2014 stood at 7.5 million customers, an increase of 1% compared to 2013. Revenue for nine months of 2014 were QAR 1,780 million compared to revenues for the same period in 2013 of QAR 1,890 million. EBITDA was QAR 854 million compared to QAR 999 million for the same period last year. Net Profit stood at QAR 253 million compared to QAR 428 million for the same period in 2013.

Nawras - Oman

Nawras' programme of network investment continued to deliver strong growth across the business. Revenue growth of 11% for the nine months 2014 was driven by strong growth of mobile and fixed data revenues, international voice revenue and value added service revenue. Revenue increased to QAR 1,636 million compared to the nine months 2013, offset partially by a decline in SMS revenue. EBITDA also increased by 24% to QAR 839 million compared to the nine months 2013 due to revenue growth and lower cost of sales partially offset by higher operational expenditure. Net profit increased by 28% to QAR 280 million compared to the nine months of 2013. Total customers grew by 7% to 2.5 million compared to the nine months 2013 driven by the demand for broadband and data services offered by Nawras' market-leading broadband network. The Omani telecoms market continues to grow although it remains highly competitive.

Nawras will release its nine month 2014 financial results on 29 October 2014.

Asiacell - Iraq

Asiacell continued to face the challenge of political and social instability during the period, allied to the effects of an increasingly competitive market. Consequently, revenue for the nine months of 2014 was QAR 4,804 million (9M 2013: QAR 5,309 million), a decrease of 10%; EBITDA was down by 19% to QAR 2,272 million and EBITDA margin was also down to 47% from 53%. Customer numbers increased by 16% to 12.3 million. Growing levels of insecurity have impacted corporate and data revenue moderately. Asiacell has continued to focus on a number of cost efficiencies during the period in the face of growing competition. Asiacell continues to monitor the situation carefully and has a range of contingency plans in place to ensure the continued operation of the business.

Ooredoo Myanmar

The period saw the successful launch of Ooredoo Myanmar's 3G network, the country's first next generation UMTS900 data network, in 68 cities and towns including Mandalay, Nay Pyi Taw and Yangon. In less than three weeks from launch in mid-August 2014, Ooredoo Myanmar had attracted 1 million customers. Ooredoo's network was rolled out to 78 cities and towns during the period, providing coverage to 14 million people. Ooredoo was the first operator to offer per second billing in Myanmar and also launched Ooredoo Business Myanmar to deliver business specific services to Myanmar's rapidly developing commercial sector. Ooredoo Myanmar now employs more than 1,000 people, with more than 80% being Myanmar. Revenue stood at QAR 54 million, while EBITDA was QAR -251 million. Net profit stood at QAR -323 million.

Ooredoo will publish its nine month 2014 financial statements on its website, accessible at: http://www.ooredoo.com.

For further information:

Email: IR@ooredoo.com

Follow us on Twitter: @OoredooIR

- Ends -

Notes to Editors

IM2, a subsidiary of Indosat, has been involved in a litigation concerning a 2006 contract between IM2 and Indosat. Under that contract IM2 leased capacity in Indosat's 3G/HSDPA 2.1 GHz network and IM2 offered a mobile internet dongle service to its customers.

The Indonesian Attorney General's Office has taken the position that IM2's use of Indosat's 2.1 GHz frequencies constitutes an unauthorised, unlicensed use of that spectrum, which deprived the State of Indonesia of license fees.

IM2 and Indosat, with the support of other telecom operators, the Indonesia telecom regulator, the GMSA and the ITU, have asserted that the capacity agreement between IM2 and Indosat is typical within the industry, and is similar to many other contracts with internet service providers (ISPs) in Indonesia and elsewhere.

Following appeals up to the Indonesian Supreme Court, on September 16, 2014, IM2's former President Director was incarcerated, and, according to informal information, a fine against IM2 was decided. IM2 and Indosat await formal notification of the decision. IM2, Indosat and Ooredoo are considering further legal recourse. For further information see note No. 17 of the Ooredoo Group consolidated financial statements for Q3 2014.

About Ooredoo

Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet and corporate managed services tailored to the needs of consumers and businesses across markets in the Middle East, North Africa and Southeast Asia. As a community-focused company, Ooredoo is guided by its vision of enriching people's lives and its belief that it can stimulate human growth by leveraging communications to help people achieve their full potential. Ooredoo has a presence in markets such as Qatar, Kuwait, Oman, Algeria, Tunisia, Iraq, Palestine, the Maldives, Myanmar and Indonesia. The company was named "Best Mobile Operator of the Year" at the World Communication Awards 2013.

The company reported revenues of US$9.3 billion in 2013 and had a consolidated global customer base of more than 95 million people as of 31 December 2013. Ooredoo's shares are listed on the Qatar Exchange and the Abu Dhabi Securities Exchange.