Omantel Net Profit Grows by 9% to R.O 66 Million and Revenue Reaches R.O 238.6 Million
Fixed Broadband Subscribers Up by 33%
Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s preliminary financial results for the period ended 30th June 2014, recording an increase in net profit by 9%. The company’s revenue has reached R.O 238.6 million as of 30th June 2014 compared to R.O 239.3 of the corresponding period of 2013, while the net profit has reached R.O 66 million compared to R.O 60.5 million in 2013. Omantel domestic customer base has grown by 6.8% while the Group customer base has also grown by 5.5% year on year.
Omantel said that growth was mainly driven by Domestic retail revenues. However, 28% decline in WTL revenue impacted overall revenue growth at group level which is mainly due to reduction in Wireless Local loop (WLL) segment. Fixed Line business recorded a growth of 10.5%, while revenues from Mobile and Fixed Broadband services have recorded a growth of 28% and 35% respectively. Domestic Mobile and wholesale businesses declined by 1.8% and 4.6% respectively. Growth in domestic revenues are mainly driven by broadband and data revenues, however, the decline in revenues from national, international calls and SMS have impacted the overall revenue growth.
Group Operating expenses decreased by 3.5% to RO 169.1 million compared to RO 175.2 million for the corresponding period of year 2013. The major reasons for decrease in operating expenses are mainly attributed to decrease in external administration (international calls) and depreciation expenses.
EBITDA & Net Profit:
EBITDA and Net Profit after tax both have recorded an impressive growth of 4.1% and 9% respectively.
Broadband segment both Mobile and Fixed Broadband services have been the key driver for the growth. Mobile and Fixed Broadband subscribers grew by 27% and 33%.
Omantel domestic subscriber base witnessed a remarkable growth of 6.8% as of 30th June 2014 reaching 3.233 million (excluding mobile resellers). Including Worldcall, total subscriber base has reached 4.170 million as of 30th June 2014 compared to 3.953 million of the corresponding period of the previous year, a growth of 5.5%.
Commenting on the results, Omantel Chief Executive Officer, Talal bin Said Al Mamari said: “Omantel has continued to see a steady growth especially in the net profit despite the decline of revenue from some services, which has been offset by the growth of mobile and fixed broadband services”.
“We are pleased with the results the Company achieved during the first half of 2014 that have seen our mobile and fixed broadband customer base growing at very good pace contributing to the overall net profit growth" Al Mamari added.
“I would like to thank our loyal customers, visionary Board, committed employees and supportive shareholders who have always been part and in support of Omantel’s journey to excellence” Talal Al Mamari concluded.
These financial results are preliminary ones and are subject to the approval of Omantel Board of Directors in its next meeting which will be held within the statuary period set by Capital Market Authority (CMA). To find out more about Omantel, log on to www.omantel.om