Published: Aug 11, 2014
Source: Muscat Daily

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Omantel's first-half net profit up 9% to RO 66 Mn

Oman Telecommunications Co SAOG (Omantel) on Monday said net profit for the six-month period ended June 30, 2014 rose nine per cent. 

The company’s revenue came in at RO238.6mn, compared with RO239.3mn in the corresponding period of 2013.

First-half net profit rose to RO66mn from RO60.5mn. Ebitda improved 4.1 per cent. The domestic customer base was up 6.8 per cent while the group customer base grew 5.5 per cent year-on-year, an Omantel press release said on Monday.

The company said that growth was mainly driven by domestic retail revenue.  However, a 28 per cent decline in its WorldCall Telecom Ltd (WTL) unit revenue impacted overall revenue growth at the group level, which was mainly due to reduction in the wireless in local loop (WLL) segment. Fixed-line business recorded a growth of 10.5 per cent, while revenues from mobile and fixed broadband services recorded a growth of 28 per cent and 35 per cent respectively. 

Domestic mobile and wholesale businesses declined by 1.8 per cent and 4.6 per cent respectively. Growth in domestic revenues were mainly driven by broadband and data revenues, however, the decline in revenues from national, international calls and SMS impacted overall revenue growth.

Group operating expenses decreased by 3.5 per cent to RO169.1mn from RO175.2mn in the corresponding period of 2013 on lower external administration  (international calls) and depreciation expenses.

Mobile and fixed broadband services have been key drivers of growth with the subscriber base growing 27 per cent and 33 per cent respectively.

Omantel’s domestic subscriber base grew a remarkable 6.8 per cent to reach 3.23mn (excluding mobile resellers). Including WorldCall, total subscriber base reached 4.17mn as on June 30, 2014, compared with 3.95mn a year ago, for a growth of 5.5 per cent.

Commenting on the results, chief executive officer Talal al Mamari said, “Omantel has continued to see steady growth, especially in net profit despite the decline of revenue from some services, which has been offset by the growth of mobile and fixed broadband services.

“We are pleased with the results the company achieved during the first half of 2014 that have seen our mobile and fixed broadband customer base growing at very good pace contributing to the overall net profit growth," he said.

“I would like to thank our loyal customers, visionary board, committed employees and supportive shareholders who have always been part and in support of Omantel’s journey to excellence,” Mamari added.

The results are subject to the approval of the company’s board of directors, the release added. 

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