Ooredoo Q.P.S.C. (ORDS) Earnings Call Transcript & Summary

Sheikh Mohammed will start with a brief overview on the current pandemic situation and the impact that it has on Ooredoo's business. Then he will provide a brief summary of the Q1 results. And as always, Ajay Bahri, our Group CFO, will provide more details on the financial numbers. And in the end, we will allow ample time for your questions. The presentation is available on our website at ooredoo.com and also on the webcast. Please do note the usual disclaimer on Slide #2. And to begin, I then hand over to Sheikh Mohammed.

Hi, everyone. [Foreign Language] Ramadan Kareem to everyone. It's my pleasure speaking to you all, and Ramadan Kareem to you and your family, and I hope that you and your families are well and healthy during this difficult time. As you all know that COVID-19 impact has been globally and it has been touching all business and across all sectors. And we know that we are in a sector that's a little bit resilient and maybe a less impacted compared to other sectors. We here at Ooredoo Group and Ooredoo management, we are very cautious, and we are putting our employees, stakeholders, employees and customer at quarantine. And we make sure that they are being helped, and their health and safety as a priority for us. Also we make sure that -- we are going to make sure that we are providing basic quality of connectivity and -- for uninterrupted services and businesses, and that's what we do across all our operation and opco. So today, I speak on behalf of the entire management in the group and opco, and we are providing that services, despite the impact of this pandemic across all our, I mean, 10 countries. We know that COVID-19 has impacted globally and disrupted most of the business. And as I said earlier, we are the less impacted and [Foreign Language]. To get that, we are quite resilient into this COVID-19. We know there are -- there have been some plus and minus. In fact, I'm going to go through just high level things that I can highlight to you. And then I'll just give the brief of our high-level quarter 1 results and then will be followed by a detailed presentation by the few members here. So basically, we have been noticing that the aviation and the republic has been impacted heavily, and that's really affecting our government revenue, and although that government revenue is not that a big percentage of our total revenue. We know that across all operation number -- big number of our shops are closed. However, that means our digital gaming has been accelerated, and we see that -- how these are being changing the behavior of customers and the mentality. And that also goes with our vision as a digital provider. Also we have been cautious also on the supply chain and production. And thank God that we are in a good relationship and good shape with our suppliers and vendors. There are some positive. Also stuff that we can share today is, as I said at the beginning of my call, that our business -- or our sector is less impacted because now that -- we know that every business and corporate and consumer individuals, parents, kids are being home, and the usage of telecom services and products are heavily dependent, and we see that from the data growth [ measurably ] in our network. And also housings are evolving dramatically on the corporate side. We know that, from consumer side, kids and parents are using streaming videos and games. And also from corporate side, we see as what we have done across all operation to education and also business to stay connected and without uninterrupted or good quality of services. And we know that in the schools that has been education from distance. And also as we have been -- as a business, communicating with each other through video conferencings and that's really started in a big jump in the telecom services. We know that also from corporate side that reinforce for the corporate decision-makers and business people that how they are really changing their management, how they are accelerating, and looking into their entire infrastructure and how they are accelerating their move into ICT solutions and data centers and how they can be resilient as well and adapting to this exceptional situation today. And that also brought, with our entire vision, how we can be a digital provider and grow into 5G installation, digital and IoT applications and ICT business. So this is a difficult time. We know that it has really impacted the entire group. We know that how this is really affecting the entire consumer and business behavior and people decision-makers. And we here in Ooredoo, we are making sure that we are taking a cautious and that could then put us in a good situation to minimize the effect or the impact of this. However, we are not closing a bigger picture and long-term strategy that we are aspiring for, being continuous in our investment and maintaining our position across all our 10 markets. Today, we had seen -- there has been a great or exponential profit growth in our network, and we are in a good position today how we are controlling that. And we are having -- adding more capacity and to be resilient into this huge demand in our network. I would love just to give maybe some high level on our Q1 results. Our Q1 results seem very positive, healthy, and we have growing our top line by 1% compared to last year, supported by growth in Indonesia and Tunisia. Our EBITDA is declining or marginally below last year because of challenging end market, like Algeria, Qatar and Kuwait and COVID-19 impact as well. Our net profit is down by 8% compared to last year, however, offset by some favorable gain in ForEx exchange. Thanks God, our financial position and balance sheet is quite healthy. We have a good position of liquidity position. We have a good position in liquidity and that give us a more comfort how we can embrace and continue and thriving for our mid- to long-term strategy of maintaining our position and continue investment into our network and core business to provide a good and high quality of services for our stakeholders and customers. That's from my side. I would hand over to the team members now for further details. Thank you so much.

Thank you, Sheikh Mohammed for your insights. I will now get into the details of the financial results. We can move to Slide #9. As already mentioned, the growth in revenue was driven by good performance of some of our opcos. I'd like to highlight Indonesia and Tunisia, where the revenue grew 7% and 16%, respectively, driven by Indosat's refreshed strategy and the implementation of Ooredoo Tunisia's value creation plans. Growth in data consumption in Myanmar also contributed to revenue growth during the period. Challenging market conditions, certainly one-off cost provisions, including the COVID-19 impacted in many of our territories, led to 5% decline in EBITDA year-on-year to QAR 3 billion. We are optimizing costs to mitigate the impact of this decline and to manage the impact at weak economies and changing consumer habits will have on our bottom line. Let's move to the next slide, Slide 10. Group net profit declined by 8% to QAR 387 million in quarter 1 2020 compared to the same period last year due to the reduction in EBITDA and COVID-19 provisions. Pre foreign exchange, net profit benefited last year from spectrum reforming benefits in our company. And in this quarter, it was negatively impacted by one-off provisions for COVID-19 and also restructuring costs in Indosat. So that one-off cost in Indosat happened in quarter 1. The benefit of that will come in coming quarters. Economic weakness as a result of COVID-19 lockdown is likely to have an impact on the economies where we operate and correspondingly will also have an impact on the performance of the operations. Having said that, we, as an industry, are better placed than other industries because of the increased demand for our products. Moving to the next slide, capital expenditure and free cash flow. You'll see that CapEx for the period was QAR 811 million, a decline compared to last year. However, this is in line with our in-sourcing strategies in trying to optimize CapEx by taking advantage of group's economies of scale and also actually related to timing of completion of certain projects. CapEx was mainly used for network upgrades and deployments. During the quarter, we upgraded our 4G network in Myanmar to the most advanced level in the country. And in our home market in Qatar, we took another step towards nationwide 5G coverage by deploying spectrum sharing sites, which enabled the running of 4G and 5G traffic simultaneously on the same frequency. Our liquidity is good. You will see cash flow increase 10% during the first quarter compared to the same period last year to QAR 1.5 billion with lower CapEx during the period. Moving on to the next slide, total customers. Our customer base increased by 6% in Q1 2020 compared to the same period last year to 118 million customers driven by strong growth in Myanmar, Indonesia and Iraq. Moving on to the next slide, net profit. We continue to maintain a healthy and well-balanced net debt to net profit. Net debt decreased by 10% to QAR 25 billion as we maintain our course of deleveraging. Our net debt to EBITDA ratio is at 1.8x, which is well within our long-term guidance of between 1.5 and 2.5 and well below of bank covenants of 4.5x. [ Net debt ] remains mainly at corporate level, like previous quarters, largely in Qatar, followed by Indonesia and then a smaller percentage allocated to the other opcos. As a reminder, debt to EBITDA level is kept primarily in local currency. Let's move to Slide 14. Revenue was at the upper end of the guidance we've given where EBITDA came in below the outlook in Q. However, we recognize that as COVID-19 lockdowns continue and resulting impact that we have on the global economy, the performance of our business may deviate from our guidance in the following quarters. At this stage, there is a lack of clear visibility and clear data to accurately project the impact of this. And therefore, we will update the guidance after Q2 when we will have a better visibility on the evolution of the situation. Let's move to Slide 16 for the operational review of our opcos, starting with Qatar end markets. Qatar continues to be our highest revenue generation. EBITDA margins, which was a healthy 55% during the quarter came slightly lower compared to last year from the reduced revenue from prepaid services. However, sequentially, impact from B2B product revenue were offset by lower costs resulting in EBITDA margin improvement. We continue to make progress towards nationwide 5G coverage, as I said earlier, by deploying spectrum sharing sites, which enabled us to run both 4G and 5G service simultaneously in the same frequency. Now we have more than 100,000 customers signed up for the new Shahry 5G and Qatarna 5G plans while our content and entertainment services are good growth within [indiscernible] customers. We maintain our #1 position in the country, and our network continues to be ranked among the fastest globally. During the quarter, we have launched several initiatives to support communities and businesses during this difficult time, including doubling data launches and providing higher speeds. Moving on to the next slide, Indonesia. Indosat really did deliver robust growth followed by the implementation of its 3-year strategy to create an energized business with a sharper focus on its customers. Revenue for the quarter grew 8% year-on-year in local currency, mainly driven by higher ARPUs due to a significant increase in data traffic. Indosat really maintained strict cost discipline, which contributed to EBITDA growth of 9% for the first quarter of 2020 compared to the same period last year and a corresponding increase in EBITDA margin to 42% for the period, up from 41% in Q1 2019. Sequentially, the revenue was lower due to certain lower B2B project revenues in Q4, resulting in lower EBITDA. However, EBITDA margin increased sequentially as a result of cost optimizations, despite a one-off cost related to organization restructuring. Those of you who have attended their call yesterday would have heard more details about that. Indosat's robust customer base grew by 5% to 56 million as we maintained our focus on developing a more loyal base with low levels of churn. Moving on to Slide 18, Iraq. Asiacell reported revenue growth of 1% to QAR 1.1 billion in quarter 1 2020, while EBITDA increased marginally to QAR 473 million, a healthy EBITDA margin of 44%. Our customer base was up 5% as customers were able to avail of Asiacell services from the safety of their homes and help of mobile buses, which delivered SIMs and scratch cards directly to people's homes. Sequentially, revenue declined due to seasonality. Vodafone had a positive impact because of the Albania festival in Iraq and also not yet impacted by COVID-19 shutdown. EBITDA margins improved compared to quarter 4. Stable performance is the result of a good start to the quarter, offset by challenges driven by the continuation of the 2019 demonstration, COVID-19 outbreak and drop in oil prices. Moving to Oman, Slide 19. Oman reported revenue of QAR 638 million, down 2% compared to the same period last year, primarily due to prepaid mobile segment, which was offset by growth in the postpaid side as well as growth in the fixed line business. EBITDA declined by 3%. However, effective cost management initiatives across the business enabled us to sustain a healthy EBITDA margin at 56%. Ooredoo Oman's license was renewed for another 15 years period in February. The renewal fees of OMR 75 million will be paid in 2 installments, 1 each in 2020 and '21. Sequentially, revenue declined due to lower device sales and prepaid revenue. This was partially offset by cost efficiencies, resulting in decrease in EBITDA but improvement in EBITDA margin. Let's move to Slide 20, Kuwait. Revenue for the first quarter of 2020 was QAR 656 million compared to QAR 673 million in 2019. Kuwait's overall performance was impacted by the COVID-19 lockdown, adding pressure to an already competitive environment. Sequentially, the revenue declined 11%, including large impact of lower handset sales as well, which is a low-margin business. The CMA in Kuwait has requested companies not to publish financial accounts until July 2020. And therefore, the numbers we are disclosing today are a bit limited compared to our usual disclosures, focusing more on the revenue details. Ooredoo Kuwait offered all workers in the ministries and the governmental organization 5 GB of free data a day and unlimited local calls in support of the efforts to contain the spread of COVID-19. Moving now to Slide 21, Algeria. A generally challenging economic environment intensified by the measures taken to contain the spread of COVID-19 weighed down on our performance in Algeria. However, I would like to highlight that our performance in terms of EBITDA stabilized over the last few quarters, which saw an improvement in EBITDA margin sequentially. Ooredoo Algeria reported QAR 594 million in revenue in quarter 1 2020, down 8% compared to same period last year, but a more moderate 3% decline compared to quarter 4 2019. Consequently, EBITDA for the period declined to QAR 200 million compared to QAR 261 million last year. Sequentially, EBITDA declined only 2%. Ooredoo Algeria launched a comprehensive program to support the community during this period, which included the use of Ooredoo's digital platforms to raise awareness on COVID-19 prevention, in addition to the deployment of its e-learning platform to support the ongoing education of students during crisis. Ooredoo Algeria also teamed up with the Red Crescent to distribute hygiene kits and help sanitize public spaces. Moving on to next slide, Tunisia. Tunisia delivered another robust set of results, despite challenging market conditions. Revenues grew 16% to QAR 382 million in quarter 1. In local currency, the growth was 8%, so a good recovery in the currency there. It was driven by good performance in B2B, fixed wireless and data segments. Consequently, EBITDA decreased by 18% -- increased, sorry, by 18%, 10% in local currency, again, benefiting from the currency improvement, supporting EBITDA margin improvement to 44%. Ooredoo Tunisia's customer base was unchanged at about 9 million, maintaining its position as the #1 telecom player and customer market share. To support its customer during these challenging times, Ooredoo Tunisia launched new nightly data bundles and free mobicash cards. Moving on to Slide 23, Myanmar. Myanmar is seeing an evolution of its telecom's market towards 4G. As a result, data usage continues to drive revenue growth in the market. Ooredoo Myanmar reported revenue of QAR 284 million in the first quarter of 2020, up 9% compared to the same period last year. However, increased customer acquisition costs contributed to margins compression and a decline in EBITDA to QAR 50 million in Q1 '20 compared to 2019. Sequentially, the quarterly performance also showed similar trends of revenue growth and pressure on EBITDA. The operational highlight for Ooredoo Myanmar is the upgrade of the country's most advanced 4G network, which use the 900 megahertz band and reach the vast majority of Myanmar's population, contributing to a 43% increase in customer base to 15 million -- 15.6 million at the end of the quarter. The country's 3G and 4G networks continue to rank #1 for speed in the country. This concludes the presentation. I will now hand it back to the IR team.

Yes. Sorry. I think I'm back now. Yes. So questions can be asked on the webcast or via the phone if the operator could just explain how to ask them as well. Thank you.

[Operator Instructions] So we have by phone our first question from Nishit Lakhotia from SICO.

I have a couple of questions on the results. First, on the Qatar operations, I have seen it was weak. It looks like a bit weak operation if I look at it in terms of performance year-on-year. And if I compare it to your competitor, it seems that the competitor has gained market share in the first quarter. So I wanted to get an idea on what's -- how is this competition environment right now within Qatar? And also in terms of your voice revenues, are you seeing any material impact from more usage of, say, OTT apps? And also on your mobile broadband, how is the impact from people working from home and using fixed broadband more? So that's my question on the Qatar operations. Second, on the Kuwait. I know you're not sharing more details in terms of the performance below revenue. But if I look at the other component in your segment reporting, where you've [ clopped ] Kuwait, Tunisia, Maldives and Palestine in operations, primarily, I see the profit before tax as a loss as a group bucket. So wanted to get a better understanding as to what is happening in this segment at a high level. If you can share something on that, it will be helpful. And third, on the Algerian operations. It seems there was an issue with some cost retention of certain people in Algeria and -- which led to some management changes there. So is there any issues going forward in terms of any cost cutting measures that you can take from that angle in Algeria? Any update on that?

Thank you for your question. As far as Qatar is concerned, I think Qatar, of course, the competition has been intense in Qatar for a long time. And some quarters, we gain market share. Some quarters, we're lacking there. So I think the movement is not material. There are some changes, but nothing material we would say. We maintained a strong position in terms of network, in terms of mobile and fixed dominance as well. On the OTT side, the impact is not material. As you are aware that OTT was not allowed in Qatar, and both Vodafone and us have been implemented that. So it was a lot earlier, much earlier, if you remember, I mean, a couple of years back. So every time that change happen, the impact is not material. So there any change in behavior like that is not expected as a material impact. A lot of customers are on bundles, which includes data and minutes bundled together. As far as the behavior of customers is concerned, you are right that a lot of customers are not moving around much. And if someone is at home, then the default usage could flip back in fixed line. And at fixed line, on most of the households that belong to us, the benefit we see that, as you pointed out, was increased income revenues on Ooredoo TV side, but that was offset by decrease in mobile broadband usage. There, too, customers were in bundles. The impact would not be that material. People who are on pay as you go, that's where the impact could be more. So it's a mixed bag, some positive, some negative, which comes out of that. On the Kuwait side, unfortunately, I can't give you more details, but we do see a revenue trend over there. And the lockdown in Kuwait has been there for some time now, so that obviously has had an impact in the revenues. I think you can probably expect that to impact the overall business as well, including -- when we talk of COVID impact, we're talking about, I mentioned, that provisions for COVID have primarily done in markets where we have postpaid customers, receivables and the expected credit loss if reassessed because of this. And it was spread across all the opcos there, including Kuwait, as you would imagine. As far as Algeria is concerned, yes, there is change of management. And we have now Mr. Bassam, who has gone there as Deputy General Manager. No concerns about the changes there. All the other top management is there since moving there -- since Bassam has gone there. So no specific concern as far as that's concerned. And as far as any cost optimization initiatives are concerned, that's a process we follow in each opco, which is an overarching plan to look at all types of costs. And the implementation process in each of opco is merited on the business requirement strategy.

So we have another question from Herve Drouet from HSBC.

Yes. A few questions. First one is, have you seen any change in the dynamics in your operations since lockdown were in place and with the COVID-19 impact, especially on working capital? But also on bad debt, do you see any delay in receivables coming from some corporate and especially SMEs? Second question is regarding CapEx. I mean your Q1 CapEx looks relatively low, and you gave some explanation for that. But comparing with your guidance for the full year, there is a very large gap. And you mentioned, at the same time, the disruption of the supply chain that may impact rollout. And I was wondering as well if you believe, especially the guidance you have given on CapEx might be -- may be too high compared with the current situation. So if you think there is room for decrease there? And finally, back on Algeria. I was wondering -- I mean, we have seen in previous quarters some kind of start of a stabilization on the financials. And this quarter, that has shown a bit of renewed weakness. Do you think we have achieved trust now in Algeria and coming quarters, we might see stabilization on starting to potentially have a bit of upside there or you still think it's too soon?

Thank you. Let me take the first question, which is general impact of the COVID-19 impact. So as far as changes to prices are concerned, each operation has actually supported the economies and the governments during this time by providing a lot of free data to customers as required very often by regulators. This is the time when I think the telecom industry really is standing with the economies and the countries to support -- whatever support is required to get the engine of the economies working. So initially, I think there has been a lot of free data given, free support given. I gave some examples in my presentation. Sheikh Mohammed also explained some of the examples of that. So yes, that is definitely there on a short-term basis, and that is required for a certain period of time by some regulators. But [ there is ] sustained decrease in pricing, most of these are promotional in nature. Working capital impact, I think it's a little early to talk about the impact of working capital right now. And in the one month of lockdown mostly in March, there are no significant impact on receivables. Having said that, we all know that these lockdowns are continued, and these will have an impact on the ability for a lot of customers, SMEs to pay on time. And that's why the proactive thing done, as far as accounting is concerned, we've taken some provisions not based just on what we saw in March, but also anticipating some deterioration in the credit quality going forward. But these are uncharted territories, as you are aware. We all have to wait and see how this plays out in each market, and the dynamic might be different in each market. The good thing overall about our business is it's primarily a prepaid business for us in most of our operations. Some operations do have exposure to receivables, but not that large. And where ever we thought there was risk, we've proactively taken some provisions for that. Your next question was CapEx. You're right, quarter 1 CapEx is low. And generally, quarter 1 is low for us in all quarters of all the years. Last year, it was a little higher because Indosat was on a CapEx rollout for their catch-up on a number of sites. So I think the comparison is Q1 of last year probably showed a big decline. But there is no disruption, which is impacting materially our CapEx plans as we speak today. So most of the plans are working. However, it's very difficult to project how this will impact our plans if there is a sustained lockdown in some of our markets. But right now, we don't see a material impact on the supply chain. Algeria performance, you're right. Year-on-year, you do see a decline. And like I said that if you compare it with the last quarter, the decline is much less, and that's an indication of a little bit of stabilization of the performance of the company. So we see a lot of positive signs there. Unfortunately, with the COVID-19 impact in the country and also to be cognizant of the fact that oil prices have gone down, that doesn't bode well for the economy there. But the company itself had a plan to turn around, has taken a lot of measures, including focusing on customers, products, distribution. All aspects were considered. So we see a stabilization there, for sure.

Okay. So we have no further questions by phone for the moment. Sorry, we have another question by phone, if I may, from Ziad Itani from Arqaam Capital.

Just a couple of questions. First of all, on the Iraq remark, can you please give us some details on what are the terms of the 5-year license expansion you got? And how much did this help in terms of lowering the amortization cost?

Sure. What has happened as of now is that the negotiations with the government have started now, and that's where the process sits right now. The government having no full visibility in terms of where the details will be received back from the government. But it would in progress right now. So once we have details of that, we can probably share more information in detail. But what has happened in the meantime, a positive impact, which you might have seen in the results of Q4 is that there is a right to request for the license extension for another 5 years. I think that process has started. In terms of IFRS, there's a possibility to write-off your balance license cost over another 5 years' time. So the positive impact of that is built into below the EBITDA in quarter 1 itself.

Okay. So this is basically the main reason why we've seen roughly QAR 100 million lower depreciation and amortization in Asiacell in Q1?

Approximately, that's not exactly the number. The number is slightly smaller than that. But yes, the main reason for that decrease comes from this lower amortization charge, which, of course, will continue on every quarter basis.

Great. And also what's happening in Iraq in terms of the 4G license? And as well, I mean, looking at Q1, we've seen quite a strong drop in revenues and EBITDA sequentially. Any specific reason for that as well?

See, what has happened in Iraq technology, there's no clarity yet on when 4G license will be issued. Of course, there was an expectation earlier that it is very imminent. And all the operators were actively working on that. But what has happened is that, with this COVID-19 situation, it's not clear now how imminent that is. So everyone is hoping it will happen. There's readiness from operators and the 4G regulatory deployment, but we have to wait and see how that plays out. As far as Q4 to Q1 is concerned, Q4, as you would recall, is only a good quarter because of the Albania festival in Iraq. And there seems to be a decline in revenue coming, primarily because of that and also partly because, in March, a strict curfew was imposed in Iraq. Unlike some other places, other countries are not as strict. In Iraq, it was a very strict curfew in March. That impacted the performance in the month of March, a little more than the other places.

Great. That's very clear. And one more question on Oman. Is there anything new with regards to a third player entering the market and tower sales opportunity?

There's no new results at which stage the third player will be entering the market. It just appears that there is a delay of the launch of operations. There was a time when where -- we were thinking it might happen sometime in the second half of the year. With this COVID-19, we believe that may be delayed into next year. But no specific news beyond what's in public domain today.

And on tower sales?

I beg your pardon.

On tower sales, anything with that regard?

Tower sales. Tower sales, of course, we did the tower sales in Indonesia. We have done one batch. And as you are aware, we still have some more towers left in Indonesia. In the meantime, Algeria is in the market with their towers. So down the line, we will look at it again, but not immediately. But that's part of the overall strategy to invest in the core network. So -- but it's not something that's happening right now.

But nothing's happening in Oman with that would -- I mean, Oman tower...

Nothing specific in Oman. Sorry, my bad. I was talking about tower sales generally. Oman, of course -- how we see Oman, the tower company already established there. And the other ones were building all new towers now. So the new tower build is with the tower company, although in theory, the operators also have a right to build. But it just makes sense not to duplicate infrastructure. It doesn't need to be to duplicated.

But what about selling the current towers that you own?

See, that in theory, that is possible. And nothing much is happening as of yet. If there's a possibility to monetize that asset, definitely, it's something we will look at. But nothing is happening actively on that side right now. Although it can happen. We will let our tower company establish there, and it really depends how the appetite there is in terms of the right valuations and the, really, the right pricing. But that is not very actively happening right now. And I think a lot of these change already slowed down because the COVID situation. And I think we'll have to wait a little bit before a few things like this will pick up.

So we have no further questions by phone.

Okay. In this case, I think we can take some questions from the webcast. Sara, do you want to read up the questions from [indiscernible]? There's a couple of pending.

A question from [ Al Rayan ]. Could the company provide discounts on any packages? If yes, what is the financial impact of these? And how long will it continue?

Yes. I'll take that question. Across the -- all operations, and of course, we are working with our clients and customers, and we always make sure that we are on a constant communication to make sure that we have a natural benefit among -- on process. So we are looking into this as a partnership with our clients, and that's something we cannot quantify as of today financially.

Another question from NBK Capital. Are there still any discussions with regulator in Qatar to extend the license similar to what was extended to Vodafone?

Actually, all the discussion with the regulator there, honestly, there is no such active, concrete discussion on that aspect. However, with this unknown -- or uncertainty of COVID-19, there has been multiple discussion with the regulator, and we are looking into so many fees and licenses that we are having with the regulator. But there's no such active concrete discussion on that specific aspect as of today because with the COVID-19, I think they are happening dramatically for the last few weeks and months. But that's something we are discussing in general aspect of all fees and things that we are having with the regulator to look at and review our relationship with Oman business.

No further questions. Thank you.

Thanks. Then we covered all the questions. I would like to...

Sorry. Sorry. This is the operator. We have a question by phone, if it's possible for you? So we have a question from [indiscernible] from ACTEM Textile.

I have just one last question, if I may. Regarding normalized EPS in Q1, so can you please share with us how much do you see it? Because there's like around QAR 200 million in other income. So if you can tell us to what do you see as normalized EPS and if you think the dividend policy that was just implemented can be revised.

Okay. So we don't disclose normalized EPS in our quarterly disclosures. Having said that, you can see the impact of FX out of the [ QAR 203 million ], right? And also if you look at the color itself, whether it is one-off should be factored for normalized or not, something we haven't given the thought. So it will be something we will assess, I think, later in the year as things stabilize. The policy itself is like a guidance given by the Board, how they intend to share the proceeds of profits between shareholders and reinvesting in the business. And of course, there is no intention to change the policy right now, it's too early. But if there's unusual activities, which we believe COVID-19 is, it would definitely be factored into the analysis.

So we have no further question at the moment by phone.

Excellent. Thank you very much. Then before we close the call, I would just like to point out 2 events that are coming up, 2 conferences. Of course, we are not traveling at the moment. But fortunately, there are virtual conferences, and Ooredoo is planning on doing one-on-one meetings at the Citi conference in London, although we're going to be in Doha. That's going to take place on the 18th and 19th of May. And we're also going to be available virtually at the Bank of America Merrill Lynch conference from the 2nd to the 4th of June. So if you are interested in participating, please talk to your broker, and we are happy to answer any questions. If you have any feedback on this call or any follow-up questions, feel free to reach out to the Investor Relations team. Otherwise, I would like to thank you for joining this call. I want to thank all the speakers, and we are looking forward to your future participation in our next update. First half results, including the updated guidance is probably going to happen around the end of July. Thank you very much, again, for your continued interest in Ooredoo.

Ladies and gentlemen, this concludes today's results call. Thank you for your participation, you may now disconnect your lines.