MUSCAT, JULY 16 - Majority government-owned Oman Telecommunications Company (Omantel) recorded revenues of RO 267.7 million by the Group for the six months ended on June 30, 2017. This compares with revenues of RO 270 million for the corresponding period of 2016, entailing a decline of 0.8 per cent.
However, Omantel Group net earnings slumped 38.9 per cent to RO 40.8 million in H1 2017, down from RO 66.8 million for the same period in 2016. “The fall in net profit is predominantly attributed to the increase in Royalty rates effective from January 1, 2017. The increase in Royalty is RO 12 million in 2017 compared to the corresponding period in 2016,” the telecom company said in a filing to the Capital Market Authority (CMA).
Announcing its preliminary unaudited financial results for the second quarter, Omantel Group also posted a 12.7 per cent increase in operating expenditure at RO 220.8 million in the first half, up from RO 195.9 million in H1 2016.
Earnings before interest, tax, depreciation and amortization (EBITDA) dipped 4.9 per cent to RO 133.4 million this year, down from RO 140.3 million last year. Royalty payable has increased to RO 29 million this year, up from RO 17 million last year, an increase of 70.8 per cent.
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