Muscat: Oman Telecommunications Company, the biggest telecom service provider in the Sultanate, said the company has posted a net profit of OMR59.9 million for the first nine months of 2017, against OMR95.1 million for the same period of last year. The fall in net earnings was mainly attributed to an increase in royalty rates from January 1, 2017. The increase in royalty expense is OMR18 million in 2017 compared to the corresponding period of 2016.
The company’s group revenue recorded a growth of 3 per cent and reached OMR406.8 million for January-September period of 2017 compared to OMR 394.8 million of the corresponding period of 2016.
Omantel said that its net profit margin stood at 14.7 per cent by end-September 2017, against 24.1 per cent for the same period of 2016.
The financial result does not include the company’s share in Zain Group, as the Kuwait-based firm’s results are under finalisation. Omantel acquired 9.84 per cent stake in Mobile Telecommunication Company (Zain Group). Investment in Zain Group is treated as an associate as per the requirements of IAS 28 and in accordance with the standards, share of results from the date of acquisition needs to be recognised in the consolidated financial statements.
Omantel said that its royalty and taxes stood at OMR52.5 million for the first nine months of 2017, against OMR38.8 million.
Cost of sales increased by 15.2 per cent to OMR92.6 million for the first nine months of 2017, from OMR77.2 million for the same period of last year.
Also, operating expenses stood higher at OMR112.5 million against OMR111.3 million.