Omantel Net Profit Grows by 18.1% to R.O 34.4 and Revenue Increases by 5%
Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s preliminary (unaudited) financial results for the first quarter of 2014 recording an increase in net profit of 18.1% to R.O 34.4 million compared with R.O 29.1 million in the corresponding period of last year and an increase of 5% in the revenue to R.O 120.2 from R.O 114.5 million in 2013.
The exceptional growth in net profit is attributed to the growth of Company’s operations especially Wholesale which has grown by 29%. Furthermore, Fixed and Mobile businesses continued its growth plateau mainly driven by mobile & fixed broadband and corporate data services. However, SMS, National and International Call revenues declined compared to the corresponding period.
The total domestic subscriber base (including mobile and fixed businesses) has reached 3.113 million (excluding Mobile Resellers), recording a growth rate of 5.3% over the last year. Group subscriber base has reached 4.042 million as of March’14 compared to 3.883 million of the corresponding period of the previous year, a growth of 4.1%. The subscriber base includes WTL subscribers, which has now reached 929 K.
Group Operating expenses declined by 0.9% to RO 83.1 million compared to RO 83.9 million for the corresponding period of year 2013. The decline is mainly attributed to several cost optimization initiatives carried out by the Company.
During first quarter of 2014, Omantel subsidiary in Pakistan (Worldcall Telecom Limited) performance has improved and incurred a net profit of RO 0.89 Mn compared to a loss of RO 0.997 Mn in the same period of 2013.
Commenting on the results, Omantel Chief Executive Officer, Dr. Amer Awadh Al Rawas said: “We are proud to see these results which reaffirms the success of Omantel strategy to improve its operations benefitting from the unique geographical location of the Sultanate, the robust nation-wide infrastructure and the extensive international connectivity Omantel has through 11 international submarine cable systems out of 9 are already operational”.
“Omantel clear strategy that was developed 5 years ago to grow the Company’s international wholesale business has enabled us to achieve these results. We become able to sell international capacity as we have invested heavily in enhancing our international connectivity as well as hosting global content and data centers which made Omantel the preferred partner for various international operators” Al Rawas added.
“Omantel continued its strategy and initiatives to enhance customer experience and rolled out different network expansion projects that included the installation of neighborhood exchanges (Multi Service Access Networks) as well as new 3.5G & 4G mobile sites in new areas to increase the footprint of our fixed and mobile broadband services” Al Rawas further pointed out.
“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” Al Rawas concluded.
These preliminary results are subject to the approval of the Company’s Board of Directors in its next meeting which will be held within the statuary period set by Capital Market Authority.
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