Omantel net profit hit by higher royalty fees

18 Apr 2017

Oman Telecommunications Company (Omantel), the Sultanate’s incumbent telecoms operator, has announced its preliminary unaudited financial results for the first quarter of 2017, reporting revenue of OMR132.6 million (USD343.5 million), a decline of 1.0% from OMR133.9 million in the year-ago period. EBITDA totalled OMR68.8 million for the first three months ended 31 March 2017, down by 4.7% from OMR72.2 million in 1Q16, while net profit dropped 31.6% year-on-year to OMR23.8 million. Omantel partly attributed the fall in net profit to a rise in royalty rates; effective from 1 January 2017 the Omani government increased the fee payable by telecoms operators from 7% of gross annual revenues to 12%. Omantel paid royalty fees of OMR14.6 million in the first quarter of this year, compared to OMR8.2 million in the corresponding period of 2016.

In a separate development, Omantel has expanded its fibre-to-the-home (FTTH) services to Al Ghubra and Azaiba, two suburbs of the capital Muscat, writes Times of Oman. The firm’s fibre rollout has been facilitated by a partnership with Oman Broadband Company (OBC), a state-owned company responsible for the construction and operation of national broadband infrastructure, which is available to licensed telecoms operators on a non-discriminatory basis.

Oman,Oman Telecommunications Company (Omantel),

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