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Omantel Operating Profit Rises 25.9pc

MUSCAT - The State-owned Omantel Group, which has fixed and mobile services, has reported a 25.9 per cent increase in operating profit estimated at RO157.653 million for the year ended December 31, 2008 compared to the RO125.207 million it earned for the year 2007.

The main reason for the good growth was due to “continuous double digit revenue growth and prudent cost management”.

The total group revenue as of December 2008 is expected to grow by 17.1 per cent to RO427.898 million compared to RO365.311 million in the previous year. Growth in revenues is mainly driven by mobile, Internet and data and wholesale businesses, which all recorded double digit growth, the company said in a notification to the Muscat Securities Market. The operating expenses is estimated at RO270.245 million compared to RO 240.104 million during last year, an increase of 12.6 per cent. Deteriorating market conditions in Pakistan due to global financial crisis had an impact on the value of the strategic investment made there, the statement said.

“As a measure of prudence, the group is considering an impairment loss in respect of the investment in Worldcall Telecom Limited (WTL), which is exceptional in nature. Omantel Group holds 56.8 per cent 
shares in WTL.