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Omantel Revenue Grows to RO 333.2 Million and Achieved a Net Profit of R.O 82.7 Million

25% Growth in Quarter on Quarter Profit & Domestic Retail Revenue Up By 8%

Mobile Network Market Share Increased to 57.3%, Total Group Subscribers Up by 4.1%

Muscat, 12^th November 2011: Oman Telecommunications Company S.A.O.G ( Omantel . MSM: OTEL) revealed today the Company's preliminary financial results for the period Jan-Sep'2011, showing a revenue increase to RO 333.2 million from RO 315.8 million and net profit after tax of RO 82.7 million compared to R.O 83 million for the corresponding period of last year. On a quarter over quarter basis, for the period ended Sep 2011, the net profit has increased by 25% to RO 28 million, compared to RO 22.4 million in the third quarter of 2010.



Omantel 's total customer base witnessed an increase of 4.1% to 3.437 million while its mobile business - Oman Mobile - continued to see significant growth with the mobile network's market share increasing to 57.3%, making Oman Mobile once again the fastest growing mobile operator in the Sultanate. Through innovative products and improved customer service, Oman Mobile network was able to capture all of the total market net additions during the past twelve months. On the fixed network side, Omantel maintained its leadership of the market with 95%.

The fixed and mobile domestic retail revenues together recorded a growth of 8% year over year despite the challenging situation in Oman following market liberalization and the launch of fixed services by the other operator.

The investments made by the company in expanding its network reach, enhancing the quality of the services rendered to customers and building more cable systems to enhance Omantel 's position as "carrier of carriers" resulted in increase in expenses by 9 % to R.O 244.2 million from R.O 224 in the corresponding period of 2010.

Successful employment of 200 new employees approved by Board of Directors in response to the Government employment initiative and the improvement of employee benefits were the second major driver of the increase in expenses.

Commenting on the results, Omantel 's Chief Executive Officer, Dr. Amer Awadh Al Rawas said: "We are pleased with the impressive growth that Omantel has been making over the past twelve months. Our mobile customer base has grown by 8% despite the stiff competition and change in regulatory policies on the calculation of active subscribers. In fact, Oman Mobile network acquired all the total market net additions. This remarkable growth has been achieved through our past investments to improve customer service, enhance network coverage and introduce innovative products to our customers".

Al Rawas further explained "We continued to invest in implementing our customer experience enhancement strategy, expanding the reach of our network, and building more international submarine cables. This has resulted in increase in expenses by 9% compared to the corresponding period of last year".

" Omantel submarine cable business is growing and we are glad to see a significant increase in the capacities sold to international operators. We are planning to add three more submarine cables to our network in the coming few months which will further strengthen our position as "Carrier of Carriers" and ensure our international customers a more redundant and reliable connectivity", Dr Al Rawas added.

The new products and offers that we introduced since the beginning of this year reaffirmed our leadership of the telecom market in the Sultanate. The investments we made in expanding the 3.5G network and Next Generation Network have resulted in increased number of fixed and mobile broadband customers which has grown to 292K, a growth of 52% compared to the same period of last year". Dr Amer concluded.

To find out more about Omantel , log on to www.omantel.om

-Ends-

For further information, please contact:
Mohamed Al Salmi
Manager PR and Media
Omantel
Tel: 00 968 24244658
Mobile: 00 968 99879879
Email: mohamed.salmi@omantel.om

© Press Release 2011