Oman's Nawras posts 47% drop in Q3 net profit

(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Oman's No.2 telecom operator, Nawras, reported a 47 percent fall in third-quarter profit on Sunday, blaming the slump on falling text revenue and higher network maintenance costs.

The firm, majority-owned by Qatar Telecom (Qtel), made a net profit of OR7.2m ($18.70m) in the three months to September 30, down from OR13.48m in the year-earlier period, according to a statement to the Oman bourse.

Nawras, which ended Oman Telecommunication Co's (Omantel) monopoly in 2005, also reported declining profits in the previous two quarters.

Third-quarter revenue was OR46.9m. This compares with OR49.2m a year ago.

"The decline in revenue is primarily driven by a reduction in SMS (text) revenue, partially offset by growth in both mobile and fixed data as well as international voice revenues," Nawras said.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the nine months to Sept. 30 fell 10 percent to OR69m.

"EBITDA for the year has been affected by lower gross margin and higher operating expenses," Nawras said. "Higher operating expenses are mainly due to higher network maintenance cost."

The operator had 2.13 million mobile and fixed customers at September-end, up 9.3 percent from a year ago.

Oman is the only Gulf country to have issued mobile virtual network operator (MVNO) licences. Omantel hosts MVNOs Friendi and Renna, which have helped it win back customers from Nawras.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

Saudi prince aims for Silicon Valley appeal to gleam at home

Saudi prince aims for Silicon Valley appeal to gleam at home

Photographs of Prince Mohammed meeting Facebook boss Mark Zuckerberg...

Cash for clicks: are apps bad for you?

Cash for clicks: are apps bad for you?

Networking apps are making billions of dollars on the back of...

Most Discussed
sponsoredTracking