Omantel reveals financial results for period ended 31st December 2012
- Oman: Wednesday, February 13 - 2013 at 09:35
- PRESS RELEASE
Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed the Company's preliminary financial results for the period ended 31st December 2012, recording an increase in both revenues and net profit of 1.4% and 4.1% respectively. The Group customer base also grew by 8.5% year on year.
Despite the challenging market conditions and decline in revenue from international calls and SMS, Omantel said that 2012 was a successful year that saw an increase in the number of total subscribers reaching 3.831 million - an increase of 8.5% which includes subscribers of its subsidiary company Worldcall Telecommunications Limited (WTL).
Omantel Mobile - the company's mobile business arm - continued to see a remarkable growth of 12.1% with number of customers reaching 2.553 million making Omantel Mobile again the fastest growing mobile operator in the Sultanate for the third consecutive year. Including Resellers, Omantel Mobile network customers, increased by 8.5% to a total 3.06 million at the end of December 2012.
The total domestic revenues recorded a growth of 3.1% year on year despite the challenging situation in Oman following the increased market liberalization and the launch of fixed services by the other operator. All three business segments - Fixed, Mobile and Wholesale have contributed to this growth. Omantel Mobile has achieved the highest retail revenue of RO 70.3 Mn in Q4'2012.
Broadband segment both Mobile and Fixed Broadband services have been the key driver for the growth. Mobile and Fixed Broadband subscribers grew by 59.5% and 36%, while revenue also recorded a growth of 69% and 26% respectively.
Commenting on the results, Omantel Chief Executive Officer, Dr. Amer Awadh Al Rawas, said, "2012 have been yet another successful year for Omantel that saw a good growth in revenue, net profit and customer-base."
"We are delighted with the results the Company achieved during 2012 that have seen our subscriber base growing despite the increased domestic competition as well as competition from over the top players and challenging conditions in the domestic market," Al Rawas added.
"During the year, we have successfully launched the first 4G LTE network and rolled out a major 3.5G network development programme following the allocation of the required spectrums by TRA. These major investments along with the dedicated efforts and contribution of all our stakeholders have enabled us to increase our domestic mobile customer-base by 12.1% year on year," he concluded.
"Despite the major investments we have made during 2012 to enhance our customers' experience, we were able to control our expenses and closed the year with a slight increase in the expenses by 1.3%, thanks to the operational efficiency initiatives launched by different units of Omantel," he further added.
Omantel Chief Executive, further pointed out, "As part of efficiency improvement, Omantel has implemented the third phase of the Voluntary End of Services (VEoS) programme in the fourth quarter of 2012 covering 36 employees amounting to RO1.048m. He also stated that the overall results have been impacted by the loss incurred by the associates and subsidiaries."
Omantel embarked on a number of CSR initiatives and programmes during 2012 and extended support to various organizations and events. Among these projects were the financial support provided to some NGOs and charitable organizations aiming at building capacities of Omani youth and support youth projects as well as providing the necessities required by charitable organizations.
Omantel has also renewed its partnership with Information Technology Authority (ITA) for the implementation of the second and third phases of its "National PC Initiative" with the objective to increase the ownership and usage of personal computers amongst certain segments (e.g. social welfare, students and teachers) of the Omani population. Omantel has provided, free installation, modem, monthly rental and included usage upto one year as part of this initiative.
With an objective to improve the quality of local livestock and support farmers in the rural areas, Omantel partnered with Ministry of Agriculture and Fisheries to fund a mobile veterinary clinic. Omantel has also provided a financial support to Ministry of Health 'Lets Rise' initiative aiming at fighting obesity and promote healthy lifestyle. Omantel also joined hands with Oman Chamber of Commerce to provide five scholarships for Omani school graduates to pursue their higher education.
Omantel SME Business Excellence Awards was another major initiative from the Company to promote the entrepreneurship and support the government plans in creating more job opportunities for Omanis. On the social side, Omantel launched the fourth edition of Omantel Ramadhan Charity Campaign under the 'Give, Share & Care' and the campaign has been successful in reaching more than 5000 beneficiaries throughout the Sultanate.
"I would like to thank our loyal customers, supportive shareholders, visionary Board and committed employees who have always been part and in support of Omantel's journey to excellence," Al Rawas concluded.
Omantel Board of Directors recommended to the Annual General Meeting of Omantel a dividend distribution of 75% of the nominal value of the share. As Omantel has already paid interim dividend of 40% of the nominal value on August 2012, the total dividend distribution for the financial year ended 31st December 2012 will be 115%.
Omantel Board will recommend also to the Company's Annual General Meeting distributing an interim dividend of 40% of the nominal value of the share to be paid on August 2013.
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