Muscat – Oman Telecommunications Company (Omantel) announced that its group net profit increased by 31.3% year-on-year for the six-month period ended June 30, 2022.

Omantel Group reported a net profit of RO168.9mn for the first six months of 2023 compared to RO128.6mn posted in the corresponding period of 2022. After adjusting for minority interest, the net profit for the six-month period is RO38.5mn, compared to RO34.6mn in 2022, an increase of 11.2%, according to Omantel’s financial results submitted to the Muscat Stock Exchange.

Group revenues increased by 11.2% to RO1.439bn during the January – June period of this year from RO1.294bn recorded in the same period last year. Omantel’s group revenue includes the acquired business of Zain Group, which contributed RO1.149bn in group revenues in the first half of 2023.

Omantel Group’s total operating expenses (including depreciation) increased to RO709.4mn in the first half of 2023 from RO631.4mn for the corresponding period of 2022, an increase of 12.3%.

Domestic performance

As per the company’s financial report, Omantel’s net profit from domestic operations remained almost stable for the first half of this year.

The company’s domestic net profit came in at RO39.8mn in the January – June period of 2023 compared to RO40.2mn reported for the same period of the previous year.

‘Despite aggressive competition in both mobile and fixed segments, net profit is maintained at similar levels compared to last year due to sustainable revenue growth in postpaid mobile revenue, fixed broadband revenue, and a reduction in financing costs,’ Omantel said.

The company’s revenues from domestic operations increased by 10.3% to RO305.4mn for the first six months of 2023, compared to RO276.8mn in the same period a year ago.

Omantel noted that revenue growth mainly came from wholesale transit voice revenue, which increased by 37.7%, and device revenue, which increased by 56%. ‘Besides this, growth was also achieved in core revenues coming from mobile postpaid revenue, which increased by 11.1%, and fixed broadband revenues, which increased by 4%,’ the company said.

Omantel’s domestic mobile market share (including mobile resellers) currently stands at 47.5%, while the fixed telephone (post and prepaid) market share is at 72.8%.

Subscriber base grows

Omantel’s total domestic subscriber base as of June 2023 (including mobile and fixed businesses) rose to 3.3mn (excluding mobile resellers), compared to 3.1mn a year ago, an increase of 5.6%.

The company’s total subscriber base with mobile resellers reached 3.8mn as of June 30, 2023.

Zain Group’s total subscriber base as of June 2023 was at 53.4mn compared to 51.7mn in the corresponding period of the previous year, an increase of 3.3% over the last year.

Zain Group’s revenues grew by 12.4% to RO1.149bn during the first half of 2023, compared to RO1.022bn in the same period of 2022. Zain Group’s net profit grew by 39% to RO188.1mn during the January – June period of 2023, compared to RO135.4mn in the corresponding period last year.

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