telecom

Omantel Group H1 net climbs to RO 108.6 million

August 10, 2021

Positive uptrend: 14% growth in Omantel’s net profit on the domestic front

MUSCAT: Omantel Group reported an after tax Net Profit of RO 108.6 million for the six months ended June 30, 2021, compared to RO 100.5 million in 2020. After adjusting for minority interest the net profit for the period is RO 32.4 million compared to RO 24 million in 2020.

On the domestic front, the telecom firm posted a net profit of RO 36.1 million for the first half of 2021, representing a growth of 14 per cent. This is mainly due to realization of higher margin on Capacity sales, significant growth in Postpaid Mobile (YOY growth of 19.5 per cent) and Fixed broad band revenue (10.7 per cent). This was further supplemented by a reduction in Operation and Maintenance costs on account of proactive cost optimization measures, the listed company said.

Group Earning per Share (EPS) for the period ended June 2021 is RO 0.043 compared to RO 0.032 for the corresponding period of year 2020.

Group revenue for the period ended June 2021 reached RO 1194.1 million compared to RO 1242 million for the corresponding period 2020. Revenues on the domestic front reached RO 265.7 million compared to RO 288.1 million for the corresponding period 2020. The Group’s total Operating expenses decreased to RO 1007.5 million compared to RO 1038.6 million for the corresponding period 2020, a decrease of 3.0 per cent, it said.

The total domestic subscriber base as of June 2021 (including mobile and fixed businesses) was 3.215 million (excluding Mobile Resellers) compared to 3.2 million of the corresponding period of the previous year, recording a growth of 0.5 per cent over the last period. Total subscriber base with mobile resellers reached 3.8 million.

Revenues of subsidiary Mobile Telecommunication Company (Zain) recorded a drop of 2.9 per cent and reached RO 932.4 million as of June 2021 compared to the corresponding period revenues of RO 961 million. EBITDA stands at RO 385.4 million, compared to the corresponding period EBITDA of RO 409.4 million recording a decline of 5.8 per cent. Net profit stands at RO 115.3 million compared to RO 116.6 million of the previous period.

Total customer base of Zain Group increased by 1.3 per cent to 48.3 million compared to 47.6 million of the previous period.

Omantel’s Mobile market share (including Mobile Resellers) is 53 per cent with a revenue share of 59.5 per cent. The Fixed Telephone (post & pre-paid) market share is 69 per cent with a revenue market share of 79.6 per cent.

In April, Omantel’s Board of Directors had approved the sale and lease back of 2890 telecom towers in Oman. Under the agreement, Omantel has committed to sell only its passive mobile infrastructure assets in the country and enter into a long-term master services agreement to continue to utilise the tower assets.

“Omantel will retain full ownership and control of its active network and spectrum as well as its software, technology and intellectual property with respect to managing its networks. The sales proceeds will be used for deleveraging, support strategic investments in next generation advanced technologies and capabilities enhancement. Various processes and activities towards financial closing are underway. The sale is expected to be completed by end of the year 2021,” the company added.

omanobserver

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