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Nawras sees lower net profit on reduced margins, depreciation

Oman-based telecoms firm, Nawras has said its net profit dropped 11.8% in the first half of this year, due to higher depreciation costs and lower margins, despite a 4.4% growth in its customer base, Muscat Daily has reported. Net income fell to RO19.5m during the first six months of 2012, compared with RO22.1m in the corresponding period of last year. Earnings before income tax, depreciation and amortisation (EBITDA) for the first half of 2012 stood at RO48.2m, compared with RO49.2m for the same period in 2011. "EBITDA was affected by lower gross margins due to increase in international traffic and higher leased lines and managed services cost, partially offset by lower general and administration expenses. Net profit was affected by higher depreciation cost and by lower EBITDA," Nawras said.