Omantel Revenues Grows by 4.0% to R.O 481.2 Mn and Net Profit increased to RO 122.4 Mn
2014 Records the Highest Ever Fixed Broadband Growth
Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s audited financial results for the period ended on 31st December 2014 recording an increase in revenues of 4.0% to R.O 481.2 million compared with R.O 462.9 million in the corresponding period of 2013. Expenses for the period have grown by 2.8% to R.O 350.8 million from R.O 341.4 million in 2013.
The Company’s net profit witnessed an increase of 2.6% and reached RO 122.4 Mn compared to R.O 119.3 million in 2013. This is the highest net profit achieved in last 5 years.
Omantel said that growth was mainly driven by Domestic Retail revenues, which has recorded a growth of 4.3% and now reached RO 392.6 million compared to RO 376.3 million for the corresponding period of year 2013 mainly contributed by broadband and corporate data services. Fixed Line and Mobile Business retail revenues recorded a growth of 10.9% and 2% respectively. Fixed Broadband, Mobile Broadband and Data services revenues increased by 30.4%, 32.1% and 15.4% respectively. Fixed Broadband subscriber net addition in Year 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%, which impacted overall revenue growth at group level.
Group operating expenses is marginally increased by 2.8% to RO 350.8 million compared to RO 341.4 million for the corresponding period of year 2013. The major reasons for increase in operating expenses are attributed to increase in operating & maintenance (O&M), depreciation, employee costs and administrative expenses.
EBITDA & Net Profit:
EBITDA has recorded an impressive growth of 6.1% and Net Profit after tax has increased by 2.6%. EBITDA and Net Profit margin for the Year 2014 is 44% and 25.4% compared to the corresponding period EBITDA of 43.1% and 25.8% respectively. Group Net Profit is impacted by the loss of WTL.
Broadband segment both Mobile and Fixed Broadband services have been the key driver for the growth. Mobile and Fixed Broadband subscribers grew by 11% and 31%, while revenue also recorded a growth of 32% and 30% respectively.
Omantel domestic subscriber base witnessed a remarkable growth of 7.9% as of 31st Dec 2014 reaching 3.341 million (excluding mobile resellers). Including Worldcall, total subscriber base has reached 4.296 million as of 31st Dec 2014 compared to 4.022 million of the corresponding period of the previous year, a growth of 6.8%
Commenting on the results, Talal Said Al Mamari, Omantel Chief Executive Officer said “Omantel recorded a positive growth across all business lines and was able to close the year with a 4% growth in revenues and 2.6% increase in the net profit”.
“We are pleased with the overall performance in Year 2014 and in particular the growth of fixed broadband services, which is the highest recorded to date. This has been achieved despite unfavorable market conditions and increased competition from Over the Top Players (OTTPS)” Al Mamari furthered.
“I would like to thank our loyal customers, committed employees, visionary Board and supportive shareholders and who have always been part and in support of Omantel’s journey to excellence” Omantel CEO concluded. To find out more about Omantel, log on to www.omantel.om.