Omantel posts 1.2% decline in 1Q net profit

Incumbent telecoms operator Oman Telecommunications Company (Omantel) has announced its preliminary results for the three months ended 31 March 2009, reporting a 1.2% year-on-year fall in net profit to OMR37.94 million (USD98.87 million). The company’s first quarter revenue was relatively stable at OMR98.79 million, compared with OMR98.22 million during the same period of 2008. Meanwhile, Omantel’s operating expenses amounted to OMR60.14 million, representing an increase of 5.6% over the OMR56.96 million recorded in the first three months of 2009. ‘The lower revenue growth is due to decline in usage profile witnessed across the telecom sector since 4Q 2008. This is the result of lower consumer spending in view of the probable economic slowdown arising from the global economic crisis,’ commented Omantel chairman, Hamdoon Al Harthi.