Omantel's profit declines 2.4% in Q2

Domestic retail revenues recorded growth of 5.7%
Oman's incumbent operator, Omantel, saw net profit decline slightly in Q2.
Oman's incumbent operator, Omantel, saw net profit decline slightly in Q2.

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Oman’s incumbent telecom operator, Omantel, posted a net profit RO60.5 million, a decrease of 2.4% compared to the same period in 2012.

The telco reported revenues of RO239.3 million, an increase of 2.1% compared to the previous year.

Both service revenues and wholesale revenues recorded a growth of 1.6% and 3.8% respectively. Domestic retail revenues recorded a growth of 5.7%, mainly owing to growth of the mobile business.

The telco’s total subscriber base reached 3.953 million as of Jun 2013, a rise of 6.6% compared to the same period last year.

Mobile business continues to record impressive growth driven by mobile pre-paid services and broadband services, in spite of the decline in national call revenues and SMS revenues, the telco said. Growth in fixed broadband and corporate data service revenues offset declines in fixed line voice revenue.

The increase in wholesale revenue is mainly on account of increase in capacity sales and increase in international transit traffic, the telco said.

Group operating expenses increased 4.9% year-on-year to RO175.2 million in Q2. This rise was mainly due to an increase in external administration expense amounting.

Darren Burgess, Middle East telecoms analyst, at IHS Electronics & Media, said that the results for the first half of the year were broadly positive. “In the first half of 2013 the operator increased its mobile and fixed broadband subscribers by 54% and 36%, respectively. Revenue achieved from mobile and fixed broadband services meanwhile increased by 74% and 36%, respectively.

"Last month Omantel expanded its LTE network to cover 37 areas across 11 governorates, including the majority of inhabited areas in Muscat,” he said.
 

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