Muscat - Oman Telecommunications Co (Omantel) has announced its preliminary financial results for the period ended December 31, 2012, recording an increase in both revenues and net profit. While the company's revenue increased 1.4 per cent to RO458.9mn from RO452.6mn in 2011, net profit rose 4.1 per cent to RO116.2mn from RO111.6mn.
According to a press release, the group customer base for the company grew 8.5 per cent year on year. Total domestic revenues recorded a growth of 3.1 per cent year on year despite the challenging situation in Oman following increased market liberalisation and launch of fixed services by Nawras.
Omantel Mobile has achieved the highest retail revenue of RO70.3mn in the fourth quarter of 2012. The broadband segment - both mobile and fixed - has been the key driver of growth. Mobile and fixed broadband subscribers grew 59.5 per cent and 36 per cent, while revenue also recorded a growth of 69 per cent and 26 per cent, respectively.
Commenting on the results, Omantel chief executive officer Dr Amer Awadh al Rawas said, "2012 has been yet another successful year for Omantel that saw good growth in revenue, net profit and customer-base. We are delighted with the results the company achieved during 2012 that have seen our subscriber base growing despite the increased domestic competition as well as competition from over the top players and challenging conditions in the domestic market."
"Despite the major investments we have made during 2012 to enhance our customers' experience, we were able to control our expenses and closed the year with a slight increase in the expenses by 1.3 per cent, thanks to the operational efficiency initiatives launched by different units of Omantel," added Dr Rawas.
Omantel board of directors recommended to the annual general meeting a dividend of 75 per cent of the nominal value of each share. And with the payment of an interim dividend of 40 per cent of the nominal value on August 2012, the company's total dividend distribution for the financial year 2012 will be 115 per cent.
© Muscat Daily 2013
