Oman telco Nawras extends profit slump

Nawras, Oman's number two telecoms operator, posted a 13.4 percent drop in fourth-quarter profit, a fourth consecutive quarterly decline, as falling revenue from texts and on-network calls weighed on the bottom line.

Internet-based services such as instant messaging and Voice-Over-IP phone (VoIP) calls have hurt margins of Gulf telecoms companies as the region's large expatriate population has increasingly shifted away from conventional calls and texts to contact home.

Nawras, majority-owned by Qatar Telecom (Qtel), on Sunday reported a net profit of OMR10.3m (US$26.75m) for the three months to December 31, down from OMR11.9m in the year-earlier quarter.

Annual profit for 2012 fell 22.1 percent to OMR37m from the year before, it said in a statement. Full-year revenue dipped 1.7 percent to OMR193.5m.

The profit slump comes even while Nawras's customer base increased 11 percent to 2.2m.

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

For the fourth quarter, however, the company, which ended Oman Telecommunication Co's (Omantel) monopoly in 2005, reported revenue of OMR51.4m, compared with OMR50.8m a year ago.

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
Virtual and augmented reality arrive in the UAE

Virtual and augmented reality arrive in the UAE

John Lillywhite, founder of Dubai- and Amman-based Project Pen...

The Arab women making themselves heard online

The Arab women making themselves heard online

A new generation of Arab women are taking to YouTube to have...

Why Periscope will save Twitter from catastrophe

Why Periscope will save Twitter from catastrophe

The world is at a tipping point, when livestreaming video officially...

Most Discussed
sponsoredTracking