Telecom Companies Optimistic About Future Due to Revenue Growth

Muscat, Telecommunication companies operating in the Sultanate are optimistic about the future of the sector and the expected revenues in the coming years due to the good results posted in the first nine months of 2018.

The unaudited financial statements of Oman Telecommunications Company ‘Omantel’ and the Omani-Qatari Telecommunications Company ‘Ooredoo’ showed positive performance. Omantel revenues during the first nine months of 2018 increased to RO1.5 billion including revenues from Zain Group of Kuwait at which Omantel owns a controlling share of 21.9% compared to RO406.7 million during the corresponding period in 2017.

The mother company revenues declined marginally from RO403.9 million to RO401.2 million. Omantel net profits showed a remarkable growth to hit RO184.3 million compared to RO64.2 million during the corresponding period last year. The mother company net revenues declined by 21.5% to register RO46.3 million compared to RO59 million during the corresponding period last year.

The revenues of Omani-Qatari Telecommunications Company ‘Ooredoo’ increased from RO204.3 million to RO211.9 million. The net profits also upped by 16% to RO26.8 million corresponding to RO23.1 during the similar period last year.

Omantel customer base � exclusive of resale companies affiliated to Omantel- as of September 2018 declined by 3.3% to 3.4 million subscribers compared to 3.5 million subscribers in September 2017. Ooredoo customer base decreased from 3 million to 2.9 million subscribers.

The company attributed this decrease to standardizing the welcoming pack by operators as per the instruction of Telecommunication Regulatory Authority (TRA). The figures published by Ooredoo pointed out that the number of fixed telephone subscribers increased by 28.8% to more than 140,000 compared to 108,000 as of September 2017. The number of post-paid mobile subscribers increased by 4.1% to 233,000 compared to a drop by 5.7% in the prepaid mobile subscribers to 2.5 million subscribers.

Omantel said that the share of its network of the mobile communication including the resale companies is about 58.2% and that its share of revenues stood at 58.3%. The company share of the prepaid and postpaid fixed telephone stands at 74% and that its share of revenues is estimated at 81.9%.

The company said in its report that it is committed to invest in the network and that it has expanded its 4G network coverage to 94% of the population.

The market value of Omantel as of November 2018 declined by RO279.7 million to reach RO624 million as the share price decreased from RO1.205 as of the end of December 2017 to RO0.832 as of the end of November 2018. On the contrary, the market value of Ooredoo increased by RO27.3 million to hit RO369.7 million as the company share increased by 42 Baises to 568 Baises.

Source: Oman News Agency