Omantel Q1 Net Profit Rises 18%, Beats Estimates

Oman Telecommunications (Omantel) reported an 18 per cent rise in first-quarter net profit on Wednesday, beating analysts’ estimates as wholesale revenue rose by nearly a third to offset declining text and international call income.

The former monopoly made a net profit of OMR34.4 million ($89 million) in the three months to March 31, up from OMR29.1 million in the year-earlier period, it said in a statement.

Analysts polled by Reuters on average forecast Omantel would make a quarterly profit of OMR29.3 million.

Omantel attributed the profit rise to a 29 per cent increase in wholesale revenue, but did not provide further details.

The company is a partner in the Europe-Persia Express Gateway (EPEG), a mostly overland fibre broadband cable launched in December 2012 that runs about 10,000 km from Frankfurt to Barka, 80 km west of Oman’s capital Muscat.

The rise in wholesale offset declining text, fixed-line and international call income, Omantel said.

First-quarter revenue was OMR120.2 million. This compares with OMR114.5 million a year ago.

Omantel, which competes with Nawras, a unit of Qatar’s Ooredoo, posted a 5.3 per cent rise in domestic subscribers to 3.11 million.

Omantel hosts two mobile virtual network operators (MVNOs), Friendi and Renna, and also owns a controlling stake in Pakistan’s Worldcall, which swung to a small quarterly profit.