Omantel posts lower profit due to increase in royalty

Muscat: Oman Telecommunications Company, the Sultanate’s largest telecommunications service provider, said that its group net profit for the first quarter of 2017 stood lower at OMR23.8 million, against OMR34.8 million for the same period of last year - a decline of 31.6 per cent.
“The fall in net profit is predominantly attributed to increase in royalty rates effective from January 1, 2017. The increase in royalty expense is OMR6.4 million in 2017 compared to corresponding period of 2016,” the company said in a statement.
Total group revenue edged down by 1 per cent to OMR132.6 million, against OMR133.9 million, while operating expenses were down by 3.3 per cent at OMR63.8 million, according to the first quarter result posted on MSM website.
The earnings before interest, tax and depreciation, and amortisation (EBITDA) stood lower at OMR68.8 million, against OMR72.2 million for the first quarter of 2016.
The loss from discontinued operation was at OMR1.2 million for the first quarter of 2017, against OMR2 million for the same period of last year.
The results are unaudited and subject to review of the audit committee and approval of the board.