Omantel releases first half results and reveals details of Worldcall deal

13 Aug 2007

Incumbent telco Oman Telecommunications Company (Omantel) has reported a 13% year-on-year rise in its net profit for the six months ended 30 June 2007. Net profit rose from OMR43 million in June 2006 to OMR48.5 million (USD126.4 million) in the first half of 2007. Total revenue rose 11.6% to OMR175.9 million for the first six months of 2007 compared to OMR157.6 million reported for the corresponding period in 2006. Operating expenses increased by 13.4% to OMR121.4 million (from OMR107 million, attributable to interconnection expenses, depreciation, commissions and royalty charges.

The total subscriber base of Omantel stood at 1.73 million at 30 June 2007, including fixed line and broadband customers, and those of wireless subsidiary Oman Mobile, although a breakdown was not available.

The company also said it expects to conclude the purchase of 65% of Pakistani cable and fixed-wireless provider Worldcall by the end of August 2007. At last Friday’s prices, the deal would be worth PKR9.43 billion (USD156 million). It initially disclosed an interest in Worldcall in May of this year, but until now has not revealed the size of stake it hoped to buy or how much it would pay. Omantel is set to lose its domestic fixed line monopoly by the end of the year. It lost its wireless monopoly in March 2005 following the launch of Qatar-owned Nawras Telecom.

Oman, Pakistan, Oman Telecommunications Company (Omantel), WorldCall Telecom