Muscat – Ooredoo Oman on Wednesday announced that its net profit for the first nine months of 2023 dropped by 44.4% to RO7.9mn, compared to RO14.2mn reported in the same period of 2022.
The company’s revenue for the first nine months of 2023 decreased by two per cent to RO193.1mn, compared to RO197.1mn in the corresponding period of the previous year.
‘Revenue is lower mainly due to lower mobile prepaid and fixed revenue. This is partially offset by higher device revenue and ICT revenue,’ Ooredoo said in its financial report submitted to the Muscat Stock Exchange.
However, the telecom company recorded significant growth in the number of both prepaid and postpaid subscribers in 2023.
Ooredoo’s mobile prepaid customer base increased by 9.8% to 2,212,903 customers for the first nine months of 2023, compared to 2,016,188 customers at the end of the same period in 2022. The mobile postpaid customer base grew by 2.1% to 729,798 customers, compared to 715,114 in the same period of 2022.
Ooredoo’s fixed service customer base in Oman increased by 0.9% to 159,702 customers for the first nine months of 2023, compared to 158,290 in the same period in 2022.
Commenting on the results, CEO of Ooredoo Oman, Bassam al Ibrahim, said, “The telecoms market in Oman remains challenging, with increasing competition in both the mobile and fixed segments, with all industry players actively vying for market share. However, we remain committed to providing our customers with a differentiated and seamless omni-channel experience, which sets us apart.”
He said, “Our fixed customer numbers grew by approximately 0.9% in the third quarter of 2023 compared to the same quarter of the previous year, showcasing our ability to retain and attract customers in a competitive market.”
Ibrahim said that Ooredoo’s revenue has been impacted by lower mobile prepaid and fixed revenue. However, the company has managed to partially offset this decline through increased revenue from device sales and its growing ICT segment.
Ooredoo’s operating costs also saw an increase, as a result of higher equipment costs associated with increased handset sales and the expenses related to the company’s expanding ICT operations.
“In response to this, we have implemented a cost efficiency programme which is currently underway. This programme aims to mitigate the decline in the gross margin associated with the shift in our revenue mix,” Ibrahim said.
He noted that Ooredoo Oman’s commitment to technology leadership remains unwavering as it continues to expand its 5G network.
“Our 5G coverage now extends everywhere and anywhere in Oman. As the first telecoms company in the region to achieve this milestone, we are further upgrading the world of our customers and enhancing the connectivity experience for all,” Ibrahim added.
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