OMANTEL REPORTS 9-MONTHS NET PROFIT AT RO90.7MN

MUSCAT: Omantel, the largest telecom service provider in the sultanate, reported a net profit of RO90.7mn for the nine months period ended September 30, 2015. The company’s net profit was 5.4 per cent lower compared to net profit of RO95.9mn in the corresponding period of 2014.

The company recorded a growth of 7.2 per cent in group revenue to RO383.3mn compared with RO357.6mn in the same period last year, according to a press release issued by Omantel.

Omantel said that the decline in net profit is mainly due to loss incurred by Omantel’s Pakistani subsidiary Worldcall in addition to non-recurrent costs. ‘The decline was also caused by significant reduction in finance and other income categories resulting from the steep decline in the value of portfolio investments due to meltdown in the global /regional securities markets during this period’, the company said.

The revenue growth was mainly driven by domestic retail revenues which recorded a 7.8 per cent growth to RO377.7mn compared to RO350.4mn for the corresponding period of year 2014, mainly contributed by strong performance of both fixed and mobile broadband as well as wholesale services. Fixed and mobile broadband revenues

witnessed a growth rate of around 26 per cent. All major segments – consumer, corporate and wholesale revenues have recorded a growth over last year. Moreover, Omantel was able to arrest the decline in international call revenues and achieved a growth in the third quarter of 2015 compared to previous periods.

Commenting on the results, Talal bin Said al Mamari, CEO of Omantel, said, “The first nine months of this year has been challenging for us due to emergence of different non-recurrent costs. Despite this challenging situation, Omantel continued to see a steady growth in the revenue driven by strong growth in mobile and fixed broadband services which we expect will continue to drive our growth in the coming few years”.

Broadband segment both mobile and fixed broadband services have been the key driver for the growth. Fixed and mobile broadband subscribers grew by 31 per cent and 13 per cent. Omantel domestic subscriber base witnessed a growth of 3.8 per cent as of September 30, 2015 reaching to 3.38mn [excluding mobile resellers].

SOURCE: MUSCAT DAILY