24 August 2011
MUSCAT: Oman Telecommunications Company (Omantel) yesterday said its Pakistan subsidiary WorldCall Telecom Ltd (WTL) is showing signs of improvement in financial performance and is expected to achieve breakeven by the year-end.
Addressing a meeting with analysts at the Muscat Securities Market here yesterday, Dr Amer Awadh Al Rawas, chief executive of Omantel, said the Pakistan-based firm has already invested $35 million, as part of a $70 million capital injection programme.
WorldCall has achieved an operating profit of RO126,000 for the second quarter of 2011, as compared to an operating loss of RO721,000 in the previous quarter. "Net losses declined by 27 per cent, mainly due to an increase in data business."
Al Rawas said his company is looking at opportunities to invest in international cable system in an apparent move to find alternative revenue streams.
'Carriers of carrier'
He said Omantel has lost RO16.8 million in 2010 and RO10.8 million in the first half of 2011 due to the commissioning of an international gateway by its competitor.
Omantel's investments in Europe India Gateway (EIG) and Europe Persia Express Gateway (EPEG) are aimed at enhancing the 'carriers of carrier' business, maing use of Oman's strategic position. "During the first quarter, Omantel has realised a revenue of RO9 million from the sale of EIG cable system, (with an associated cost of RO7m)." The EPEG will span 7,000km and investments of consortium members will amount to around $200 million.
Meanwhile, the total additional expenditure for employing 200 workers and salary revision this year is envisaged at RO4.4 million. Of this, salary revision alone is expected to cost RO3.5 million.
Omantel, which has achieved a net profit of RO55 million in the first half, has a customer base of 3.348 million by end-June 2011, showing a growth of 3.2 per cent over the same period last year. Omantel's mobile network market share grew to 56 per cent (at 2.57 million subscribers) in June this year from 54.1 per cent in December 2010.
MUSCAT: Oman Telecommunications Company (Omantel) yesterday said its Pakistan subsidiary WorldCall Telecom Ltd (WTL) is showing signs of improvement in financial performance and is expected to achieve breakeven by the year-end.
Addressing a meeting with analysts at the Muscat Securities Market here yesterday, Dr Amer Awadh Al Rawas, chief executive of Omantel, said the Pakistan-based firm has already invested $35 million, as part of a $70 million capital injection programme.
WorldCall has achieved an operating profit of RO126,000 for the second quarter of 2011, as compared to an operating loss of RO721,000 in the previous quarter. "Net losses declined by 27 per cent, mainly due to an increase in data business."
Al Rawas said his company is looking at opportunities to invest in international cable system in an apparent move to find alternative revenue streams.
'Carriers of carrier'
He said Omantel has lost RO16.8 million in 2010 and RO10.8 million in the first half of 2011 due to the commissioning of an international gateway by its competitor.
Omantel's investments in Europe India Gateway (EIG) and Europe Persia Express Gateway (EPEG) are aimed at enhancing the 'carriers of carrier' business, maing use of Oman's strategic position. "During the first quarter, Omantel has realised a revenue of RO9 million from the sale of EIG cable system, (with an associated cost of RO7m)." The EPEG will span 7,000km and investments of consortium members will amount to around $200 million.
Meanwhile, the total additional expenditure for employing 200 workers and salary revision this year is envisaged at RO4.4 million. Of this, salary revision alone is expected to cost RO3.5 million.
Omantel, which has achieved a net profit of RO55 million in the first half, has a customer base of 3.348 million by end-June 2011, showing a growth of 3.2 per cent over the same period last year. Omantel's mobile network market share grew to 56 per cent (at 2.57 million subscribers) in June this year from 54.1 per cent in December 2010.
© Times of Oman 2011
