Omantel posts 11% drop in profits

Oman Telecommunications (Omantel) has reported a fall in nine month profits of over 11%. The 70% state-owned telco’s net income fell from OMR58.251 million (USD151.317 million) at the end of September 2004 to OMR51.56 million (USD133.936 million) in September 2005. The company attributed the drop in profitability to an increase in capital and operating expenditures; total expenses rose by 17.56% to OMR136.304 million, compared to OMR115.936 million in the same period of 2004. Revenues failed to increase accordingly, rising only 6.87% year-on-year, from OMR181.443 million to OMR193.916 million, and revenues from international calls declined sharply – down 31% in the first nine months of the year to OMR17.753 million.