Muscat: Oman Telecommunications Company (Omantel), Oman's biggest telecommunication company, said its net profit increased by nine per cent to OMR66 million for the first half of 2014, compared to OMR60.5 million for the same period of last year.
The company's revenue had reached OMR238.6 million by end-June 2014, compared to OMR239.3 during the corresponding period of 2013. Omantel domestic customer base has grown by 6.8 per cent while the group customer base was up 5.5 per cent year-on-year, said a company release.
Omantel said that growth was mainly driven by domestic retail revenues. However, a 28 per cent decline in WTL revenue impacted overall revenue growth at group level which was mainly due to reduction in Wireless Local loop (WLL) segment. Fixed line business recorded a growth of 10.5 per cent, while revenues from mobile and fixed broadband services have recorded a growth of 28 per cent and 35 per cent, respectively. Domestic mobile and wholesale businesses declined by 1.8 per cent and 4.6 per cent, respectively.
Growth in domestic revenues is mainly driven by broadband and data revenues, but at the same time, the decline in revenues from national, international calls and SMS have impacted the overall revenue growth.
Group operating expenses decreased by 3.5 per cent to OMR169.1 million compared to OMR175.2 million for the corresponding period of year 2013.
The major reasons for a fall in operating expenses are being mainly attributed to decrease in external administration (international calls) and depreciation expenses.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) and net profit after tax both have recorded an impressive growth of 4.1 per cent and nine per cent, respectively.
In broadband segment, both mobile and fixed broadband services have been the key driver for the growth. Mobile and fixed broadband subscribers grew by 27 per cent and 33 per cent.
Omantel domestic subscriber base witnessed a remarkable growth of 6.8 per cent as of June 30, 2014, reaching 3.233 million (excluding mobile resellers). Including Worldcall, total subscriber base has reached 4.170 million as of June 30, 2014 compared to 3.953 million during the corresponding period of the previous year, a growth of 5.5 per cent.
"Omantel continues to see a steady growth, especially when it comes to net profit despite the fall in revenue from some services, which has been offset by the growth of mobile and fixed broadband services," said Omantel Chief Executive Officer, Talal bin Said Al Mamari.
"We are pleased with the results the company achieved during the first half of 2014 that have seen our mobile and fixed broadband customer base growing at very good pace contributing to the overall net profit growth," added Al Mamari.
"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," Talal Al Mamari concluded.
These financial results are preliminary ones and are subject to the approval of Omantel board of directors in its next meeting which will be held within the statuary period set by Capital Market Authority (CMA).