Home News Business Omantel net at 40.8m rials, revenue hits 267m rials

Omantel net at 40.8m rials, revenue hits 267m rials

 Staff Reporter

MUSCAT

Telecom major Omantel posted a net profit of 40.8 million rials for the first half of the year.

In a filing on the Muscat Securities Market, the company said its net profit fell by 38.9 per cent to 66.8 million rials during the same period last year owing to predominantly increase in royalty rates from January 2017. The increase in royalty expense was 12 million rials higher going up to 29 million rials, a 70.8 per cent jump, it added.

Group revenue stood at 267.7 million rials as against 270 million rials the previous year.

Operating expenses went up by 12.7 per cent to 220.8 million rials as against 195.9 million rials. The earnings before interest, tax, depreciation and amortisation (Ebitda) were 133.4 million rials, a 4.9 per cent fall from last year.

Finance and other income went down to 1.2 million rials from 2.9 million rials.

On the tax front the company had a 44.7 per cent drop to 5.1 million rials from 9.3 million rials.

The loss from discontinued operations was 2.3 million rials as against 2 million rials last year.

Omantel has contributed to raising 3G coverage to 96 per cent and 4G coverage to 86 per cent in the populated areas. On a global scale, Omantel became the first GCC operator to land a submarine cable in Europe in the French city of Marseille. Spanning approximately 25,000 kilometres connecting close to half of the world’s population, the AAE-1 submarine cable is also one of the first unique cable systems to connect Hong Kong to Singapore, and Europe, all via Oman.

Omantel is the only operator in the Sultanate that offers triple play services via fiber optics. These services enable users to experience high speed Internet, including home Internet services at speeds of up to 200 mbps.

The company has expanded its fibre optic services in Al Batinah North. The expansion will give residents an access to high-speed fibre optic technology in several areas in the Willayats of Sohar, Suwaiq, Saham, Shinas and Liwa.