MUSCAT -- The Annual Ordinary General Meeting of Oman Telecommunications Company approved the proposed distribution of cash dividends to shareholders amounting to 75 per cent of the capital (equivalent of 100 baizas per share). As Omantel has already paid interim dividend of 40 per cent of the nominal value on August 2012, the total dividend distribution for the financial year ended December 31, 2012 is 115 per cent. Omantel AGM also authorised the Company's Board of Directors to distribute interim dividends to maximum 40 per cent from the paid up capital on August 2013.
This came during the Annual General Meeting held at the company's headquarters building at Mawalleh earlier this week. The AGM has also approved the report of the Board of Directors for the fiscal year ended on 31/12/2012, the company's corporate governance report for the year ended on 31/12/2012 and the report of the independent auditors. It has also approved the profit and loss account and the balance sheet for the fiscal year ended on 31/12/2012.
The Annual General Meeting furthermore approved the Board members remuneration, ratified the sitting fees for Board meetings and other committees paid to the members of the Board of Directors for the fiscal year that ended on 31/12/2012. It has also determined the sitting fees for the next fiscal year ending on 31/12/2013. The Assembly has taken note of the company's transactions with related parties during the fiscal year ended on 31/12/2012. It has also approved the proposed donations for community service amounting to RO 500,000 and approved the appointment of independent auditors for the next fiscal year ending on 31/12/2013 and determined their fees.
Net profits
Commenting on the Company's results, Engineer Sultan Hamdoon al Harthy, Chairman of Omantel Board of Directors said: "We are pleased with these results that witnessed a growth in our net profit despite the challenging market conditions and increased competition. Omantel has achieved net profits of RO 116.2 million during the year that ended on 31/12/2012, an increase of 4.1 per cent year on year."
Group Revenue as of December'12 has grown up to RO 458.9 million, an increase of 1.4 per cent compared to RO 452.6 million for the corresponding period of year 2011. Both service revenues and wholesale revenues recorded a growth of 1.2 per cent and 2.0 per cent respectively. The increase in wholesale revenue is mainly contributed to increase in revenues from external administration.
Domestic Retail Revenues has recorded a growth of 3.7 per cent year on year, mainly contributed by Mobile business. Mobile business continue to record impressive growth driven by mobile pre-paid services and broadband services, inspite of decline in International call revenues and SMS revenues. Also, growth in Fixed Broadband and Corporate Data Service revenues prevented the decline in Fixed Line, Omantel Chairman further noted.
"Omantel Mobile the company's mobile business arm continued to see a remarkable growth of 12.1 per cent with number of customers reaching 2.553 million making Omantel Mobile again the fastest growing mobile operator in the Sultanate for the third consecutive year. Including Resellers, Omantel Mobile network customers, increased by 8.5 per cent to a total 3.06 million at the end of December 2012.
"During the year, we have successfully launched the first 4G LTE network and rolled out a major 3.5G network development program following the allocation of the required spectrums by TRA. These major investments along with the dedicated efforts and contribution of all our stakeholders have enabled us to increase our domestic mobile customer-base by 12.1 per cent year on year," Al Harthy concluded.
During 2012, Omantel embarked on a number of CSR initiatives and programs and extended support to various organisations and events.
Among these projects were the financial support provided to some NGOs and charitable organisations aiming at building capacities of Omani youth and support youth projects as well as providing the necessities required by charitable organisations. Omantel has also renewed its partnership with Information Technology Authority (ITA) for the implementation of the second and third phases of its "National PC Initiative" with the objective to increase the ownership and usage of personal computers amongst certain segments (e.g. social welfare, students and teachers) of the Omani population. Omantel has provided, free installation, modem, monthly rental and included usage upto one year as part of this initiative. With an objective to support farmers in the rural areas, Omantel partnered with Ministry of Agriculture and Fisheries to fund a mobile veterinary clinic. Omantel has also provided a financial support to Ministry of Health "Lets Rise" initiative aimed at promoting healthy lifestyle.
Omantel joined hands with Oman Chamber of Commerce to provide five scholarships for Omani school graduates to pursue their higher education.
Omantel SME Business Excellence Awards was another major initiative from the Company to promote the entrepreneurship and support the government plans in creating more job opportunities for Omanis.
© Oman Daily Observer 2013
