Font Size

- Aa +

Tue 9 Nov 2010 10:05 AM

Font Size

- Aa +

Omantel Q3 profit drops 33 percent as expenses rise

Expense due to expansion of 3.5G network and depreciation resulting from new technologies

Omantel Q3 profit drops 33 percent as expenses rise
PROFIT DROPS: Analysts polled by Reuters had on average estimated a third quarter profit of $71.4m

Oman Telecommunications Co's (Omantel) third quarter profit declined 33 percent, falling short of analysts' estimates, as expenses rose.

The national telecoms provider made a profit of $57.1 million in the three months through September, compared with 32.83 million in the year earlier period, according to Reuters calculations.

Analysts polled by Reuters had on average estimated a third quarter profit of $71.4 million.

Omantel had reported a nine month profit of $215.5 million, down from $274.7 million in the same period last year.

Its expenses climbed to $581.7 million from $496 million due to "aggressive expansion of 3.5G network and the depreciation resulting from introducing new technologies on the network," Omantel said in a statement on Monday.

State controlled Omantel's monopoly on the telecommunications market in Oman was broken in 2006 by Nawras, a unit of Qatar Telecommunications.

Shares of Omantel closed 0.3 percent higher earlier on Monday. The results were released after trading hours. (Reuters)

For 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.