Nawras' profits dip in first half of 2011

Profits down by 3%, revenues decline by 0.7% as SMS use falls
Ross Cormack highlighted investments made in the telcos network.
Ross Cormack highlighted investments made in the telcos network.

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Nawras, Oman’s second telecom operator, saw its profits decline by 3% to OMR 19.5 million ($50.6m) in the first half of the year compared to the same period in 2011.

The telco, which competes with incumbent operator Omantel, posted total revenues of OMR 95.3 million in H1, a decline of 0.7% compared with 2011. Nawras attributed this decline to a reduction in SMS revenues which was only partially offset by the continued growth in data revenue.

EBITDA for the first half of the year stood at OMR 48.2 million compared to OMR 49.2 million for the first six months of 2011. EBITDA for the year is affected by lower gross margin due to increase in international traffic and higher leased lines and managed services cost, partially offset by lower general and administration expenses. General and administration expenses for the year have been lower due to one off reversal in accruals relating to staff cost, Nawras said.

Total number of customers grew by 4.4%, 86,090 customers, to 2,028,100 at the end of the first half of 2012 compared to 1,942,010 for the same period of 2011.

The fixed service customer base grew by nearly 176% to 36,787 customers from 13,338 customers for the same period of 2011.

Year-on-year, mobile post-paid customer base also grew by 2.6% to 175,469 customers compared with 170,958. In addition, year to date, the mobile pre-paid customer base increased by 3.3% to 1,815,846 customers compared to 1,757,717 customers

Ross Cormack, CEO, Nawras, said: “We have more customers than ever using our network despite the highly competitive market. With more and more data capable devices driving the growth, the network investments we are making sure that our customers continue to get the best possible service.”

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