Rising revenue pushes Omantel profit higher

Oman Telecommunications Company (Omantel) reported a rise in net profit for the first quarter of this year, supported by revenue growth from domestic operations and Zain Group, its Kuwaiti subsidiary.

Net profit attributable to shareholders jumped 23 percent year on year to OMR21 million ($55 million) in the quarter ended March 31, primarily driven by Zain’s stronger contribution, the telco said in a statement to the Muscat stock exchange.

Revenue rose 6 percent to OMR857 million, supported by 50,000 net additions in the machine-to-machine segment and 25,000 net additional postpaid subscribers, who are billed after using their services, typically on a monthly basis.

Omantel holds a 22 percent stake in Zain Group, which reported revenues of KD569 million ($1.9 billion) in the first quarter, up 6 percent year on year.

Omantel invested more than OMR19 million in capital expenditure in the first quarter, primarily directed towards 5G network deployment and the expansion of digital infrastructure. It is prioritising projects to advance 5G rollout and accelerate digital transformation across the business.

The Omani company offers fixed-line, internet, mobile and wholesale communication services. It also provides data centre and software services.

Omantel was founded in 1987 and is majority-owned by the Oman Investment Authority, the sultanate’s sovereign wealth fund. Just under half of the shares are listed on the Muscat Securities Market as a free float.

The stock closed at OMR1.4 on Monday, up 40 percent in the year to date.

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