Omantel Group records 9.7% rise in 2023 revenues and an impressive net profit growth of 13.1%

Domestic operations revenues rise by 7.3% with a net profit from continuing operations recording a growth of 9.7%

Muscat: Oman Telecommunications Company Group (MSX: OTEL) reported a remarkable growth following the announcement of 2023 financial results, with the Group’s revenue (including Zain Group’s operations) rising by 9.7% from R.O 2,682.8 million at the end of year 2022 to R.O 2942.7 million.  The Group’s net profit grew by 13.1% from R.O 278.9 million in 2022 to R.O 315.5 million at the end of year 2023. Omantel Group net profit attributable to shareholders of the Company (after excluding the non-controlling interest) is R.O 74.8 million in year 2023 compared to RO 91.3 million in 2022 .

Omantel’s domestic operations performance:

At the level of domestic operations, Omantel’s revenues grew by 7.3% to reach R.O 606.5 million, compared to R.O 565.5 million reported in the same period of 2022, driven by growth in wholesale transit voice revenue which increased by RO 17.2 million and device revenue which increased by RO 19.3 million. Growth in retail revenue is contributed by Mobile Postpaid revenue which increased by 10.2% and Fixed Broadband revenues which increased by 4.2%.

Net Profit of the domestic operations for the year 2023 stands at RO 63.3 million compared to RO 85.7 million in the previous period, a decline of 26.1%. Net profit for the year 2022 included Capital gain on Sale of Towers for RO 28 million (Net of taxes). Excluding the Capital gain from the profit for year 2022, the net profit for year 2023 shows an increase of 9.7% compared to the previous year.  This increase was on account of stable EBITDA and a decrease in Finance costs.

Zain Group Performance:

Zain Group revenues year ended 31st December 2023 reached RO 2,361.4 million compared to RO 2,129 million of the corresponding period of the previous year, an increase of 10.9%. EBITDA stands at RO 871.3 Mn, compared to the corresponding period EBITDA of RO 828.6 million recording an increase of 5.2%. Net profit stands at RO 359.7 million compared to RO 276.5 million of the previous period, an increase of 30.1% 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 30th March 2024 to distribute a cash dividend of 55 Baiza per share for the year ended 31st Dec 2023 (subject to shareholders approval).