MUSCAT: Oman Telecommunications Co SAOG (Omantel), announced on Sunday that its audited financial results for the period ended December 31, 2014 recording a four per cent increase in revenues to RO481.2mn from RO462.9mn in the corresponding period of 2013.

Expenses for the period grew by 2.8 per cent to RO350.8mn from RO341.4mn a year earlier.

The company’s net profit rose by 2.6 per cent to reach RO122.4mn, from RO119.3mn in 2013. This is the highest net profit achieved in the last five years.

According to an Omantel press release, growth was mainly driven by domestic retail revenues, which recorded a growth of 4.3 per cent to reach RO392.6mn on contributions by broadband and corporate data services. Fixed line and mobile business retail revenues recorded a growth of 10.9 per cent and two per cent, respectively. Fixed broadband, mobile broadband and data services revenues increased by 30.4 per cent, 32.1 per cent and 15.4 per cent respectively. Fixed broadband subscriber net addition in 2014 was the highest ever recorded so far. However, revenues from national, international calls and SMS have continued its declining trend due to over-the-top (OTT) services. Omantel subsidiary WorldCall (WTL) revenues declined by 26.2 per cent, which impacted overall revenue growth at the group level.

Group operating expenses increased by 2.8 per cent to RO350.8mn. This was attributed to increase in operating & maintenance (O&M), depreciation, employee costs and administrative expenses.

Ebitda recorded an impressive growth of 6.1 per cent. Ebitda and net profit margin for 2014 came in at 44 per cent and 25.4 per cent, compared with 43.1 per cent and 25.8 per cent respectively, a year earlier. Group net profit was impacted by the loss at WTL. Both mobile and fixed broadband services were key drivers of growth. Mobile and fixed broadband subscribers grew by 11 per cent and 31 per cent, while revenue also recorded a growth of 32 per cent and 30 per cent, respectively.

Omantel’s domestic subscriber base grew a remarkable 7.9 per cent to reach 3.34mn (excluding mobile resellers) as on December 31, 2014. Including WorldCall, total subscriber base reached 4.29mn, compared with 4.02mn in the corresponding period of the previous year, a growth of 6.8 per cent.

Commenting on the results, chief executive officer Talal Said al Mamari said, “Omantel recorded a positive growth across all business lines and was able to close the year with a four per cent growth in revenues and 2.6 per cent increase in the net profit.”

“We are pleased with the overall performance in 2014 and in particular the growth of fixed broadband services, which is the highest recorded to date. This has been achieved despite unfavourable market conditions and increased competition from over-the-top players,” Mamari added.

SOURCE: Muscat Daily