Economy

Omantel’s revenue grows by 4.7%, net profit reaches R.O 34.8 million

Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s preliminary unaudited financial results for the 1st Quarter ended on 31st March 2016.

Oman Telecommunications Company S.A.O.G (Omantel. MSM: OTEL), revealed today the Company’s preliminary unaudited financial results for the 1st Quarter ended on 31st March 2016.
Group revenue recorded a growth of 4.7% to R.O 135.5 million compared with R.O 129.4 million in the corresponding period of 2015. Cost of Sales increased by 8.4%, while Operating Expenses recorded a decrease of 3.5% compared to the corresponding period.
The Group net profit is RO 34.8 Mn compared to R.O 34.6 million in 2015, an increase of 0.6%. The net profit is propelled by strong domestic performance, which witnessed an impressive revenue growth of 5% contributed mainly by revenues from Fixed and Mobile broadband services and submarine capacity sales.
Financial Highlights:

Omantel Group
In RO Mn	Three Months ended 31st March
	2016	2015	In Fig	In %
Revenue	135.5	129.4	6.1	4.7%
Cost of Sales	(27.8)	(25.7)	(2.2)	(8.4%)
Gross Margin	107.7	103.7	4.0	3.8%
*Gross Margin % of Revenue*	*79.5%*	*80.2%*
Operating Expenses	(37.3)	(38.6)	1.4	3.5%
EBITDA	70.4	65.1	5.3	8.2%
*EBITDA %*	*52.0%*	*50.3%*
Depreciation & Amortization	(23.6)	(20.6)	(3.0)	(14.5%)
EBIT	46.9	44.6	2.3	5.2%
Finance & Other Income/ Expense	0.2	0.9	(0.7)	(78.4%)
Profit Before Royalty & Taxation	47.1	45.4	1.7	3.7%
Royalty & Taxation	(13.3)	(12.0)	(1.3)	(10.7%)
Profit After Tax (Before Minority Interest)	33.8	33.4	0.4	1.1%
Minority Interest	1.0	1.2	(0.2)	(13.4%)
Net Profit	34.8	34.6	0.2	0.6%
*Net Profit %*	*25.7%*	*26.7%*

The above results are preliminary and unaudited and subject to approval of the Board. The final results will be released after the approval of the Board of Directors meeting, which is scheduled on 12th May 2016.