Omantel Revenues Grow to R.O 463 Million and Achieves Net Profit of R.O 119.3 Million
Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s financial results for the period ended 31st December 2013, recording an increase in net profit of 2.6%. The Group customer base also grew by 5% year on year. The company’s revenue has increased by almost 1% to R.O 462.9 million as of 31st December 2013 compared to R.O 458.9 of the corresponding period of 2012 while the net profit has reached R.O 119.3 million compared to R.O 116.2 million in 2012.
2013 has been a successful year for Omantel. Omantel’s revenues from Domestic operations (excluding the Pakistani subsidiary) recorded a growth of 4.4% year on year driven by growth in all business streams (Fixed, Mobile Wholesale) reaching R.O 450.7 million. Service and Wholesale revenues have recorded a growth of 4.2% and 5.7%respectively. In spite of the decline in revenue from national calls and SMS, Omantel mobile business continued to record impressive growth driven by mobile prepaid and broadband services. Fixed and wholesale businesses recorded a good growth during the year driven by fixed broadband, corporate data services, external admin (international calls) and capacity sales revenues. Broadband segment both Mobile and Fixed Broadband services have been major driver for the growth. Mobile and Fixed Broadband subscribers grew by 48% and 34%, while revenue also recorded a growth of 53% and 35% respectively. Domestic operations Net Profit after tax has recorded an increase of 3.7% to reach RO 124.6 million compared to RO 120.2 million of the corresponding period of year 2012.
Commenting on the results, Omantel Chief Executive Officer, Dr. Amer Awadh Al Rawas said: “We are pleased with the results Omantel has achieved during 2013 which reflects our commitment to shareholders to maintain a sustainable growth for the Company. 2013 has been a challenging but yet another successful year that saw a good growth in revenue, net profit and customer-base”.
“During the year, we have been able to expand our customer-base, increase our revenues and grow the net profit despite challenging market conditions and the increasing fierce competition in the local market as well as from the global over the top players”.
“We continued our investments on the network during 2013 to provide best-in-class customer experience and ensure that our customers are always enjoying unmatched quality service. The new state-of-the-art 4G LTE network has been rolled out according to the plan. The number of 4G LTE base stations has reached more than 470 by end of December 2013. Many improvements have also been made on the 3.5G network following the allocation of more spectrums by TRA. Despite these investment, Omantel was able to close the year with a slight increase in the expenses by 2.2%”.
“These results would have not been possible without the loyalty of our customers and the support from our shareholders, Board and our employees. I would like to thank our loyal customers, supportive shareholders, visionary Board and committed employees who have always been part of Omantel’s journey to excellence” Al Rawas concluded.
Omantel Board of Directors recommended to the Annual General Meeting of Omantel a dividend distribution of 75% of the nominal value of the share. As Omantel has already paid interim dividend of 40% of the nominal value on August 2013, the total dividend distribution for the financial year ended 31st December 2013 will be 115%.
Omantel Board will recommend also to the Company’s Annual General Meeting distributing an interim dividend of up to 40% of the nominal value of the share to be paid on August 2014.