Gulf state's largest telecoms provider reported increase profit on lower expenses
Oman Telecommunications, the Arabian Gulf country’s biggest phone company, reported a 13 percent increase in first-quarter profit as expenses declined.
Net income rose to OMR29.1m (US$75.6m) from OMR25.8m a year earlier, the Muscat-based company said in a statement to the local stock market today.
Expenses fell 3.6 percent to OMR79.6m, while revenue dropped 0.4 percent to OMR111.1m.
The average estimate of four analysts was for a profit of OMR29.1m, according to data compiled by Bloomberg.
In February, Oman Telecommunications announced plans to invest OMR84m in its network in 2012.
The state-backed company said it ploughed a similar amount into the network in 2011, and it wanted to maintain a steady investment going forward, the Muscat Daily reported.
“In 2011, we invested OR84mn in capital investments on the network,” CEO Amer al Rawas said at a press conference.
“In 2012, it will be about the same. We are trying to keep it to 20 percent of revenue.”
Rawas added that he was not worried about the impact of GCC roaming rates, which were slashed by 50 percent earlier this month as regulators tried to bring costs in line with those in developed markets.
* Additional reporting by Arabian BusinessFor all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.