Omantel posts group net profit of RO57mn in Q1

Muscat - 

Omantel on Wednesday announced that the group achieved a net profit of RO57.4mn in the first quarter of 2018 compared to RO23.7mn net profit reported in the same period of last year. The group net profit includes RO52.8mn contributed by Zain Group, Omantel said in its financial report submitted to the Muscat Securities Market.

However, Omantel’s net profit attributable to the shareholders of the parent company fell to RO16mn in the first quarter ended March 31, 2018 from RO23.8mn reported for the same period a year ago.

Group revenue for the first quarter of 2018 grew to RO470mn compared to RO131.6mn in the corresponding period of 2017. Group revenue includes acquired business of Zain Group, which contributed revenues of RO325.2mn in the first quarter.

Omantel Group results for the first quarter of 2018 included fully consolidated Zain Group results, while the financial results for the first quarter of 2017 did not include Zain Group.

Omantel’s revenues from domestic operations – which include parent company and domestic subsidiaries – rose 9.8 per cent to RO144.5mn in the first quarter of this year compared to RO131.6mn recorded in the corresponding period of 2017.
The company said its retail revenue increased 2.6 per cent, while wholesale revenue grew by 40.5 per cent, due to higher revenues from submarine capacity sales. The growth is mainly driven by fixed broadband revenues, which recorded a growth of 12.5 per cent.

Omantel’s domestic subscriber base (including mobile and fixed businesses) recorded a growth of 2.1 per cent at 3.43mn as of March 31, 2018 compared to 3.36mn subscribers a year ago. The company’s total subscriber base including mobile resellers reached 4.41mn at the end of March this year.

Omantel said the introduction of several fundamental regulatory changes this year will have a substantial impact on Omani telecom market in 2018. It added that the current improvement in oil prices and economic environment will likely result in a positive market growth in the medium and long term.

During the second half of 2017, Omantel completed the acquisition of 21.9 per cent shareholding in Zain Group and acquired the controlling interest in the Kuwaiti company.

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