Omantel reports OMR41m net profit

MUSCAT: Oman Telecommunications Company (Omantel), the Sultanate’s biggest telecom service provider, said its group net profit stood at OMR40.8 million for the first six months of 2017, slipping from OMR66.80 million for the same period of last year. “The fall in net profit is predominantly attributed to the increase in royalty rates effective from January 1, 2017. The increase in royalty expenses was OMR12 million in 2017, compared with the corresponding period in 2016,” Omantel said in a disclosure statement posted on the Muscat Securities Market website.

Royalty paid by the company was higher at OMR29 million, against OMR17 million during the period under review.

The company’s total revenue stood slightly lower at OMR267.7 million for the first half of this year, against OMR270 million for the same period of last year. Operating expenses were pegged at OMR220.8 million, up from OMR195.9 million during the period under review.

Earnings before interest, tax, depreciation and amortisation stood lower at OMR133.4 million for the first half of 2017, against OMR140.3 million for the same period of last year.

Omantel paid OMR5.1 million as tax for the first half of 2017, against OMR9.3 million paid for the same period of last year.

Omantel shares fell by 3.33 per cent to OMR1.160 amid 338,485 shares changing hands on the Muscat Securities Market. Also, the Muscat bourse declined by 1.13 per cent to 5,063.70 points on lower than expected profit of corporate sector.