3pc growth in Omantel Group Q3 revenues

MUSCAT, OCT 15 - Oman Telecommunications Company (Omantel) posted a three per cent increase in the Group’s revenue for the third quarter ended September 30, 2017. Announcing its preliminary unaudited financial results, the Sultanate’s biggest telecom operator said that Group revenue reached RO 406.8 million in Q3 2017 compared to RO 394.8 million for the corresponding period of 2016. The Group net profit is RO 59.9 million compared to RO 95.1 million in 2016, a decrease of 37 per cent. The fall in net profit is predominantly attributed to the increase in Royalty rates effective from January 1, 2017, Omantel said, noting that Royalty fees are RO 18 million higher in 2017 compared to the corresponding period of 2016.

The financials results do not include Zain Group financials, said Omantel in a filing to the Capital Market Authority (CMA). On August 24, 2017, Omantel acquired 9.84 per cent shares in Mobile Telecommunication Company (Zain Group), Kuwait. “Investment in Zain Group is treated as an associate as per the requirements of IAS 28 and in accordance with the standards, share of results from the date of acquisition needs to be recognised in the Consolidated financial statements. The above results does not include its share of results of Zain Group since their results are currently under finalisation. This will be considered in the Group financial statements and communicated after approval of the Board of Directors,” Omantel added.