Omantel profit up again in fourth quarter

28 Jan 2008

Incumbent Oman Telecoms (Omantel) posted its second-biggest profit ever in the fourth quarter as the cut in government royalties continued to boost revenues. Net income in the three months to 31 December 2007 surged almost 47% year-on-year to OMR29.43 million (USD76.46 million), compared with OMR20.07 million in the year-earlier period.

Menon Gopinath, a company finance officer, told Reuters, ‘The main reason for the profit jump is an increase in revenue because the royalty cut had an impact…[adding] about OMR3 million to profit.’ He added that number of subscribers to Oman Mobile, the firm’s cellular arm, rose more than 18% during 2007 to 1.48 million, and that revenue in 2007 rose 12.9% year-on-year to OMR365.3 million. ‘The economy is booming so this contributed to the rise in the number of subscribers,’ Gopinath said.

In October, the government cut the royalties Omantel and rival Nawras pay on mobile revenues to 7% from 12% and on fixed-line revenues to 10%. The change was applied retroactively from 1 January 2007.

Oman, Oman Telecommunications Company (Omantel)