Omantel Group net profit soars to RO 208.8 million in 2018

Muscat, Feb 17 – Omantel Group achieved a net profit after tax of RO 208.8 million in 2018, representing a surge of 109.4 per cent from the previous year’s net of RO 99.8 million, the majority government-owned operator said in initial unaudited consolidated results released here yesterday. Group revenue for the period surged to RO 2,186 million last year, compared to RO 751.7 million in 2017 — a jump of 190.8 per cent Group results for the year ended December 31, 2018 include fully consolidated Zain Group results, while Year 2017 consolidated results include only the results of Zain Group from November 2017 to December 2017. Further, Zain Saudi Arabia (Saudi Arabia) became a subsidiary of Zain Group following a step-up acquisition in Q3 2018.
Earnings before interest, tax, depreciation and amortization (EBITDA) soared to RO 854.6 million last year, up 193.8 per cent from the previous year’s figure of RO 290.9 million. Net profit attributable to the shareholders of the company for 2018 amounts to RO 64.8 million, compared to RO 78.3 million in 2017. Net profit of the Group (excluding Zain Group) for the year ended December 31, 2018 includes interest cost of RO 56.3 million related to Zain acquisition (versus RO 10.6 million in 2017), as well as dividend income from Zain Group amounting to RO 42.6 million (nil for 2017). Adjusting for these items, the net profit of Omantel Group (excluding Zain Group) for 2018 is RO 89.2 million (compared to RO 83.2 million for 2017), reflecting a growth of 7.2 per cent.
Revenues of the parent company however declined 2.1 per cent to RO 516.2 million in 2018, down from RO 527.5 million in 2017. Net profit for the period also dipped 9.1 per cent to RO 64.2 million last year, down from RO 70.6 million a year earlier. The performance of Omantel (parent) does not include the performance of its local and international subsidiaries and also does not include the complete operational performance of the Group, it added.