MUSCAT, MARCH 18
Majority-state owned telecom operator Omantel announced group-wide revenue of RO 2.682 billion for the year ended December 31, 2022, representing a 11.4 per cent increase over the previous year’s total of RO 2.408 billion. The dominant share came from the acquired business of Kuwait-based regional telecom powerhouse Zain Group, with a revenue contribution of RO 2.129 billion in 2022.
The Group recorded a post-tax profit of RO 278.9 million for the year versus RO 233.6 million in 2021. After adjusting for minority interest, net profit amounted to RO 91.3 million in 2022, which was up 35.3 per cent from the previous year’s figure of RO 67.5 million, Omantel — part of Oman Investment Authority (OIA) — stated in its annual report for fiscal 2022.
On the domestic front, total revenues climbed 6.4 per cent to RO 565.5 million for 2022, up from RO 531.4 million in 2021. “Revenue growth achieved in Mobile Postpaid, Fixed Broadband and cost optimisation measures have contributed in managing the profitability for the year 2022,” the Chairman stated in the Directors’ Report.
Net profit rose 16 per cent to RO 86 million, up from RO 74 million in 2021. It includes capital gain arising out of the sale of its passive telecom towers amounting to RO 28 million (net of taxes).
“Profitability was effectively managed by capitalising on growth in Mobile Postpaid revenues which increased by 11.2 per cent, and Fixed broadband by 3.3 per cent with stable revenues from the Wholesale segment,” the Chairman further stated.
The tower agreement, according to Omantel, represented one of two “high-profile deleveraging deals” pursued by the company in line with its Asset-Lite strategy to achieve an optimised capital structure and liquidity.
Under the deal, which was successfully concluded last December, Omantel sold its passive infrastructure comprising over 2,519 tower sites to UK-based mobile tower infrastructure company Helios Towers plc for a cash consideration of $494 million.
The second deleveraging deal, the telecom operator said, pertains to its successful monetisation of its investment in Omantel headquarters building located in Madinat Al Irfan in Muscat.
“The transaction included a sale and lease back of the HQ building through a REIF structure which has allowed Omantel to generate considerable liquidity, yet retaining a considerable degree of control over the REIF which will help Omantel in participating in the value created by the REIF in future for the shareholders. ‘Pearl REIF’, successfully completed its initial public offering corresponding to 136.7 million investment units at the offering price of RO 0.112/share.
Following the IPO, Omantel is holding the remaining 142.3 million units of Perl REIF translating into a 33.51 per cent shareholding,” it added.