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Ooredoo’s nine months net profit declines 44 per cent

27 Oct 2020

Ooredoo Oman reported a more than 44 per cent decline in its net profit for the nine months period ended September 30, 2020. The company’s net profit dropped to RO15mn in the January–September period of this year compared to RO27mn recorded in the same period of 2019, mainly impacted by lower revenues.

Ooredoo Oman’s revenue for the first nine months of 2020 decreased by 5.4 per cent to RO199.6mn compared with RO211.1mn in the same period of 2019. The decrease in total revenue was due to lower mobile revenue, according to the company’s financial statement submitted to the Muscat Securities Market.

Ian Dench, CEO of Ooredoo Oman said, “Although this has been a challenging quarter, our digital transformation and customer demand for access to digital services continues at a pace.”

He said with the easing of certain [COVID-19 related] restrictions at the end of June 2020, Ooredoo Oman outlets gradually opened up again with new safety features and operations in place. “Additionally, our rollout of 5G services picked up pace extending the coverage of our 5G Supernet Home Internet to more areas of Oman.”

Ooredoo Oman said its total number of customers at the end of September 2020 stood at 2,631,955 compared with 2,981,481 customers a year ago, a decline of more than 11 per cent. The decline in the total customer base was due to a sharp drop in the number of mobile prepaid customers.

The mobile prepaid customer base at the end of September 2020 dropped by 16.9 per cent to 2,120,970 compared to 2,551,756 for the same period of last year.

On the other hand, Ooredoo Oman’s mobile postpaid customer base grew by 28.9 per cent to 343,212 customers as of September 30, 2020 compared with 266,325 customers a year ago. The fixed service customer base increased by 2.7 per cent to 167,773 customers compared to 163,400 customers recorded at the end of September 2019.

“To further transform the digital landscape of the country so that more people can enjoy the Internet with us, we signed an agreement, under the auspices of the Telecommunications Regulatory Authority (TRA), with Oman Broadband Company to connect remote regions and rural areas with broadband Internet using satellite technology to support education from home,” Dench said.

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