Omantel net profit rises by 9.2% to RO90m
- Oman: Wednesday, November 14 - 2012 at 09:49
- PRESS RELEASE
Oman Telecommunications Company S.A.O.G (Omantel), the Sultanate's pioneer telecom company, has announced today its financial results for the 9 months period ended 30th September, recording an increase in the net profit after tax by 9.2% to RO90m mainly supported by strong performance of the domestic operations.
The increase in Omantel revenue is mainly attributed to the impressive growth in mobile broadband subscribers by 67% which contributed to an increase in the domestic retail mobile revenue by 5.4% year on year. On Group level, both revenues streams, Retail as well as Wholesale have recorded a growth of 1.7% and 8.5% respectively. The increase in wholesale revenue is mainly contributed by increase in revenues from external administration and Capacity sales.
Omantel subscriber base witnessed a notable growth both in the domestic and group levels. The Company witnessed an increase in the total group customer base (including Worldcall subscribers) by 9.8% to 3.774 million as of 30th Sep 2012 compared to 3.437m on the corresponding period of 2011. The subscriber base includes WTL subscribers, which has grown by 2.9% and has now reached 939 K. The total domestic subscriber base (including mobile and fixed businesses) has reached 2.835 million (excluding Mobile Resellers) as of September 2012 recording a growth rate of 12.3% over the last year
The total operating expenses increased slightly by 1.3% to RO247.2m compared to RO244m for the corresponding period of 2011. This increase in operating expenses is attributed to increase in employee cost, external administration (international calls), marketing, distribution fees and interconnection costs. However, depreciation of plant, property and equipment and amortization of intangibles have decreased by RO5.9m compared to Q3'2011.
Domestic operations profitability continues to be robust and recorded an increase of 12% compared to the corresponding period. Loss incurred by Worldcall has slightly impacted the overall group profitability growth.
Commenting on this inspiring consistent performance, Omantel's Chief Executive Officer, Dr. Amer Awadh Al Rawas said: "Our Company has continued to make outstanding growth despite many challenging conditions and increased competition in the domestic market."
Dr. Amer further noted: "Our increased thrust on providing enhanced network coverage across Sultanate, improved customer experience have resulted in a strong performance of our domestic operations leading to a significant growth in our customer-base especially mobile and fixed broadband customers which have grown by 67% and 32% respectively. Furthermore, Omantel Mobile continued to lead the market with a notable growth in the Company's individual and mobile network market share."
Omantel continued implementing its Corporate Social Responsibility (CSR) programme and partnered with Ministry of Higher Education and Oman Chamber of Commerce & Industry to provide scholarships for five Omani secondary school graduates to pursue their university higher education. Omantel has as well supported SANAD Programme to help create more self-employment opportunities for young Omanis.
During the last quarter , Omantel was the winner of three international awards in recognition of the outstanding performance of the Company. Omantel has been selected to be the winner of Best Employer Brand among all Asian companies in a prestigious event held last July in Singapore. Moreover, we were the winner of the Golden Trophy for our Muscat festival 2012 Best Campaign awarded by Summit International Awards in USA and also the winner of the Gold Award for the Best Annual Book in the Academy Awards for Annual Reports.
"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" Al Rawas concluded.
Omantel Board has approved these financial results reviewed by the external auditors during the Board meeting held on 13th November 2012.
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