38 per cent jump in Omantel Group half yearly revenue

The increase in Group profit is against the backdrop of an excellent performance in key markets of Zain Group, notably in Kuwait, Saudi Arabia and Iraq

Omantel Group revenues surged 38 per cent to RO 1,258.9 million for the half year ended June 30, 2019, compared to RO 914.2 million for the corresponding period of 2018.

Announcing the initial consolidated results for the JanuaryJune period of 2019, the Group said it had achieved a net profit after tax of RO 126.5 million this year, up from RO 101 million in 2018, representing an increase of around 25 per cent.

“The increase in Group profit is against the backdrop of an excellent performance in key markets of Zain Group, notably in Kuwait, Saudi Arabia and Iraq,” said Omantel in a filing to the Capital Market Authority (CMA).

“Zain Group contributed RO 114.8 million ($298 million) to the net profit (before non-controlling interest) of Omantel Group in H1 2019 compared to RO 86.8 million ($225.4 million) in H1 2018, a growth of 32.2 per cent. After adjusting for non-controlling interest, Zain Group contributed RO 21.4 million ($55.5 million) in H1 2019 compared to RO 18.6 million ($48.4 million),” it further stated.

“The above performance of Zain Group during the half year demonstrates the underlying potential of the investment, which is also reflected by way of increase in market value of the investment by 17.5 per cent from the date of inception of the investment,” Omantel noted.

On the domestic front, the performance was subdued on account of significant challenges experienced on account of market saturation in the mobile segment, according to the operator.

Omantel’s Oman operations witnessed an 8.8 per cent decline in net profit mainly due to reduction in mobile prepaid revenues and IRU capacity sales, it said. However growth in fixed broadband, ICT and cost optimisation initiatives have contributed in managing the margins, it noted.

Revenue generated for the period reached RO 259.8 million ($675 million) and net income reached RO 39.2 million ($102 million) compared to RO 42.8 million ($111 million) in 2018. EBITDA amounted to RO 101.6 million, with EBITDA margin standing at 39.1 per cent for the period. Fixed line revenues grew 4.0 per cent y-o-y whereas mobile revenues declined 10.3 per cent.