Omantel Group posts net profit of RO 233.6m for 2021

BUSINESS REPORTER

MUSCAT, FEB 13

Omantel Group’s net profit rose 2.0 per cent to RO 233.6 million for the year 2021, up from RO 229 million for the previous year.

Announcing its initial unaudited results for the year, the Sultanate of Oman’s biggest telecom group posted total revenue of RO 2,408.3 billion, down from RO 2.511 billion for the previous year, entailing a decrease of 4.1 per cent. EBITDA declined 5.5 per cent to RO 970.3 million in 2021, down from RO 1026.3 million in 2020.

On the domestic front, Omantel posted a net profit of RO 73.2 million in 2021, which was lower by 5.3 per cent from the previous year’s figure of RO 77.3 million. Total revenue dipped 1.7 per cent to RO 531.4 million, down from RO 533.1 million in 2020. EBITDA slumped 15.2 per cent to RO 190 million, down from RO 205.2 million in 2020.

Commenting on its domestic performance, Omantel said: “Despite continued business disruptions witnessed during the year resulting from the Covid-19 pandemic, Omantel’s domestic operations were able to put up an impressive performance. This was contributed by comparatively high margin capacity sales, growth in postpaid mobile (yoy 19.2 per cent) and fixed broadband revenue (yoy 9.1 per cent), despite a decline in the prepaid mobile revenue segment. This was further supplemented by a reduction in Operation & Maintenance costs and depreciation driven by proactive cost optimisation measures.”

Zain Group, in which Omantel has a minority stake, generated consolidated revenue of $5.0 billion in 2021, while consolidated net income reached $616 million. The Board of Zain Group, at its meeting on February 10, declared a cash dividend of 23 fils per share in addition to 10 fils per share paid as interim dividend. The total dividend stands at 33 fils for 2021, Omantel added.