Wednesday 05 / February / 2025
Muscat: Oman Telecommunications Company Group (MSX: OTEL) reported remarkable growth following the announcement of 2023 financial results, with the group's revenue (including Zain Group's operations) rising by 9.7 per cent from OMR2,682.8 million at the end of the year 2022 to OMR2942.7 million.
The group's net profit grew by 13.1 per cent from OMR278.9 million in 2022 to OMR315.5 million at the end of year 2023. Omantel Group's net profit attributable to shareholders of the Company (after excluding the non-controlling interest) is OMR74.8 million in the year 2023 compared to OMR91.3 million in 2022.
Omantel's domestic operations performance
At the level of domestic operations, Omantel's revenues grew by 7.3 per cent to reach OMR606.5 million, compared to OMR565.5 million reported in the same period of 2022, driven by growth in wholesale transit voice revenue which increased by OMR17.2 million and device revenue which increased by OMR19.3 million. Growth in retail revenue is contributed by Mobile Postpaid revenue which increased by 10.2 per cent and Fixed Broadband revenues which increased by 4.2 per cent.
Net Profit of the domestic operations for the year 2023 stands at OMR63.3 million compared to OMR85.7 million in the previous period, a decline of 26.1 per cent. Net profit for the year 2022 included Capital gain on the Sale of Towers for OMR28 million (Net of taxes). Excluding the Capital gain from the profit for the year 2022, the net profit for the year 2023 shows an increase of 9.7 per cent compared to the previous year. This increase was on account of stable EBITDA and a decrease in Finance costs.
Zain Group Performance
Zain Group's revenues year ended 31st December 2023 reached OMR2,361.4 million compared to OMR2,129 million in the corresponding period of the previous year, an increase of 10.9 per cent. EBITDA stands at OMR871.3 million, compared to the corresponding period EBITDA of OMR828.6 million recording an increase of 5.2 per cent. Net profit stands at OMR359.7 million compared to OMR276.5 million in the previous period, an increase of 30.1 per cent over the last year. Key operations in Kuwait, Iraq, KSA and Jordan delivered impressive profit growth. The completion of Tower sales during the year in KSA and Iraq helped in creating value and efficiencies for Zain Group.
Omantel Board of Directors recommended to the company’s annual general meeting that will be held on March 30, 2024, to distribute a cash dividend of 55 Baiza per share for the year ended December 31, 2023 (subject to shareholders' approval).
