Ooredoo Oman net profit rises 12% in first half

Business Friday 29/July/2016 19:42 PM
By: Times News Service
Ooredoo Oman net profit rises 12% in first half

Muscat: Ooredoo Oman net profit for the first half of 2016 increased to OMR24.9 million compared to OMR 22.2 million in the same period of 2015, a rise of 12.2 per cent.
The unaudited financial results for the six months ended June shows revenues for the first half of grew by 8.9 per cent to OMR132.8 million compared to OMR 121.9 million in 2015. The growth is driven by increases in both mobile and fixed data revenue.
Ebitda (Earnings before interest, taxes, depreciation and amortization) for the first half of the year stood at OMR73.4 million compared to OMR68.4 million for the first six months of 2015. Ebitda growth for the year is driven by higher revenue.
Increase in net profit for the year is driven by higher Ebitda partially offset by higher depreciation cost due to investment in network modernisation.
Commenting on the results, chief executive officer of Ooredoo Oman, Greg Young, said: “We are pleased with our revenue growth in this first half of the year and this is confirmation of our continued focus on customer needs. Our growth is largely driven by a continued rise in data demand in the mobile and fixed markets, as well as a significant increase in fixed customer numbers.”
“The growth is also a result of our continued network investment, both to modernise and increase coverage. On the back of this, we have developed a number of inspiring products, promotions and services, such as our superfast fibre home broadband packages, our popular daily Ooredoo surprises and attractive Shahry business pack offers, to meet the changing needs of customers and businesses in all sectors across the Sultanate,” he added.
Net profit, following adjustment relating to income tax for the second quarter ending June 2016, includes a reversal of tax amounting to OMR0.6 million on account of revising the tax provision for the year to be at 12 per cent instead of the 15 per cent provided for in first quarter of 2016. Further, income tax for the second quarter of last year includes an additional charge of OMR0.9 million on account of the tax years 2008 to 2013.
Total number of customers grew by 3.2 per cent, to be 2,841,472 at the end of the first half of 2016 compared to 2,753,140 for the same period of 2015.
The fixed service customer base increased by 28.7 per cent to 80,292 customers in the second quarter of 2016 compared to 62,410 for the similar period in 2015. The mobile post-paid customer base grew by 5.1 per cent to 212,352 customers compared to 202,026 customers in the second quarter of 2015. The mobile pre-paid customer base for the second quarter of 2016 increased by 2.4 per cent to 2,548,828 compared to 2,488,704 for the same period last year.
“Customer service remains one of our primary business drivers and this is reflected in some significant awards we have won this quarter. We continue to innovate customer excellence across all of our touch-points,” said Greg.
“We will build on this strong first half with the input of the entire Ooredoo family and I would like to thank them for their continued contribution to our success and growth,” he added.