Thursday, May 09, 2013
DUBAI (Zawya Dow Jones)--Omani Telecommunications Co. (OTEL.ON) posted a 2.5% dip in first-quarter net profit as investment in mobile and fixed line networks pushed up expenses.
Omantel, the country's biggest telco, made a net profit of 29.1 million Omani rial ($75.5 million) for the three months until Mar. 31, compared with OMR29.9 million a year earlier, according to an emailed statement. Revenues for the quarter were up 3.1% to OMR114 million as the telco increased its customer base by 9.7% to 2.95 million.
The telco's total operating expense in the quarter increased by 5.4% to OMR83.9 million, compared to the same period last year, as the telco booked an external administration expense amounting to OMR6.6 million due to customers using increased international retail minutes. Meanwhile, depreciation costs also increased as the company invested in 3G, 4G and fixed-line networks.
"As we are continuously working on providing our customers [with an] enhanced customer experience, Omantel made huge investments to expand the reach of its network and roll out the new state-of-the-art network and the second carrier on 3.5G network following the allocation of available spectrum by Telecom Regulatory Authority," Amer Awadh Al Rawas, chief executive of Omantel, said in the statement.
Write to Rory Jones at rory.jones@dowjones.com
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(END) Dow Jones Newswires
09-05-13 0517GMT
