Omantel’s Q1 net profit jumps 34% to RO60mn
Omantel has reported a 34 per cent year-on-year growth in its group net profit for three months period ended March 31, 2019. Group net profit in the first quarter of this year jumped to RO60.5mn compared to RO45.2mn in the same period of 2018.
Total group revenue rose 34 per cent to RO628.7mn in the first quarter against RO470mn in the same period of last year, Omantel said in its initial unaudited results report submitted to the Muscat Securities Market on Sunday.
Omantel said the net profit attributable to shareholders of the company for the first quarter of 2019 is RO14.9mn compared to RO13.4mn in the same period of 2018. It said the first quarter of 2019 includes the effect of consolidation of results of Zain KSA whereas in first quarter of 2018 Zain KSA was an associate and as such, only share of profits/losses were considered in the results. Zain KSA results are consolidated with effect from third quarter of 2018, the company said.
Omantel said its Oman operations witnessed a 12 per cent growth in net profit in the first quarter of this year on the back of growth in fixed line revenues, improved gross margins and cost optimisation measures. Domestic revenue generated for the quarter reached RO130.5mn and net income increased to RO19mn compared to RO17mn in the first quarter of 2018. Fixed line revenues grew 5.6 per cent year-on-year whereas mobile revenues decreased 14.4 per cent.
Omantel’s domestic operations covers fixed-line business, mobile business, Omantel International-wholesale arm of Omantel engaged in international voice aggregation business, Oman Data Park and Internet of Things.
Zain Group contributed RO55.8mn to the net profit of Omantel Group in the first quarter of 2019 compared to RO40.6mn in the same period of 2018, a growth of 37.4 per cent. Interest costs incurred by Omantel Group relating to Zain acquisition is RO13.3mn in the first quarter of 2019 and is accounted at Omantel Group level and is not part of domestic performance, Omantel said.