MUSCAT -- The board of Oman Telecommunication Company (Omantel) yesterday approved a proposal to acquire majority share in Worldcall Telecommunication a Pakistan-based telecommunication service provider. However, finalisation of the deal is subject to the approval of Worldcall shareholders and Pakistan's regulatory authorities, a company statement said.
Meanwhile, a report prepared by the Financial Corporation (FinCorp) found that Omantel share is the cheapest telecommunication stock in the region in terms of price earning ratio. The report said that Omantel's decision to acquire a majority stake of 65 per cent of Worldcall Telecom was a qualitative leap, especially in view of the fact that the Pakistani telecommunication market is currently witnessing marked growth. This will add to Omantel profits in the near future. This is also important in view of the fact that the Sultanate's telecommunication market is saturating.
Omantel and its partner Belgian Telecom Company (Belgacom) have decided to withdraw from competition for a second mobile licence in Qatar. Fincorp report expects that Omantel's revenues for 2007 would reach RO 355.4 million, then increase to RO 393.3 million in 2008 and to RO 427.8 million in 2010. Omantel's net profits for this year will increase to RO 101.7 million, and move up to RO 111.2 million in 2008. Net profits winning streak will continue in the following years to hit RO 113.5 million in 2009, RO 117.5 million in 2010 and RO 119.9 million in 2011, the report noted.
By Business Reporter
© Oman Daily Observer 2007
