Omantel EGM Approves Issuance of Sukuk
Distribution of 75% Cash Dividends
The Extraordinary Annual General Meeting of Oman Telecommunications Company (Omantel) held at Omantel headquarters yesterday (22nd March 2015) approved the amendment of the article No. 4 of the Company’s Article of Association by adding Import and export of devices and communications equipment as well as agencies and commercial representation. The Extra Ordinary General Meeting also approved the issuance of Sukuk.
The Extra Ordinary General Meeting was followed by Annual General Meeting which approved the distribution of cash dividends to shareholders amounting to 75% of the capital (equivalent of 75 baizas per share). As Omantel has already paid interim dividend of 40% of the nominal value on August 2014, the total dividend distribution for the financial year ended 31st December 2014 is 115%. Omantel AGM also authorized the Company’s Board of Directors to distribute interim dividends to maximum 55% from the paid up capital on August 2014.
Omantel AGM has also approved the report of the Board of Directors for the fiscal year ended on 31/12/2014, the company’s corporate governance report for the year ended on 31/12/2014 and the report of the independent auditors. It has also approved the profit and loss account and approved the balance sheet for the fiscal year ended on 31/12/2014. The Annual General Meeting furthermore approved the Board members remuneration, ratified the sitting fees for Board meetings and other committees paid to the members of the Board of Directors for the fiscal year that ended on 31/12/2014. It has also determined the sitting fees for the next fiscal year ending on 31/12/2015. The Assembly has taken note of the company’s transactions with related parties during the fiscal year ended on 31/12/2014 and the donations made for community service during 2014. The AGM also approved the proposed donations for community service amounting to RO 500,000 and approved the appointment of independent auditors for the next fiscal year ending on 31/12/2015 and determined their fees.
Commenting on the Company’s results, Saud bin Ahmed Al Nahari Vice Chairman of Omantel Board of Directors said “We are pleased with these 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..
The 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.
“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%”. H.E concluded.