Omantel profits soar 38%

Published: 7 August 2019 - 6:49 a.m.

For the first half of the year, group revenue for Omantel has grown from OMR 1,258.9 million compared to OMR 914.2 million during the same period in 2018. This reflects a 38 per cent growth year-on-year. The group recorded an after-tax net profit of OMR 126.5 million compared to OMR101 million in 2018. This increase in profit is due to the outstanding performance in key markets of Zain Group namely in Kuwait, Saudi Arabia and Iraq.

Talking about the results, the chief executive officer of Omantel, Talal Said Al Mamari said “We are delighted with these results which clearly reflect the importance and success of our strategic investment in Zain Group that serves around 50 million customers in the region. Zain Group performance has enabled us not only to offset the decline witnessed in the domestic operations but rather to grow our revenues and net profits to new record levels.”

Zain Group contributed OMR 114.8 million to the net profit of Omantel in the first half of 2019, compared to OMR 86.8 million in the first half of 2018. This is a growth of 32.2 per cent. After adjusting for non-controlling interest, Zain Group contributed OMR 21.4 million in 2019.

On the domestic front, the performance was subdued because of the significant challenges faced by the sector due to market saturation in the mobile segment. The Omani market is characterized by having one of the highest mobile penetration rates globally. Domestic operations cover mobile business, fixed line business, IoT, Omantel International (OTI) - wholesale arm of Omantel engaged in international voice aggregation business and Omantel park.

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