Ooredoo Oman Net Profit up by 12.2% and Revenue up by 8.9% in first half of 2016

 

Muscat, Oman,28thJuly 2016: Omani Qatari Telecommunications Company SAOG (“Ooredoo”) today announced unaudited financial results for the six months ended 30June 2016:

Financial Highlights:

 

Three months ended 30 June

 

Six months ended 30 June

2016

2015

Change%

2016

2015

Change%

Revenues (OMR m)

66.7

62.6

6.5%

132.8

121.9

8.9%

EBITDA (OMR m)

36.1

34.7

4.0%

73.4

68.4

7.3%

Net Profit (OMR m)

12.3

11.5

7.0%

24.9

22.2

12.2%

Mobile and fixed customers (‘000)

 

 

 

2,841

2,753

3.2%

 

Key Messages

Revenues for the first half of 2016 grew by 8.9% to OMR 132.8 million compared with OMR 121.9 million in 2015. The growth is driven by increases in both mobile and fixed data revenue.

EBITDA for the first half of the year stood at OMR 73.4 million compared to OMR 68.4 million for the first six months of 2015. EBITDA growth for the year is driven by higher revenue.

Net profit for the first half of 2016 was OMR 24.9 million compared with OMR 22.2 million in the same period of 2015. Increase in net profit for the year is driven by higher EBITDA partially offset by higher depreciation cost due to investment in network modernisation.

Net Profit includes following adjustment relating to income tax:

Income Tax for the second quarter ending June 2016 includes a reversal of tax amounting to OMR 0.6m (YTD 2016 – Nil) on account of revising the tax provision for the year to be at 12% instead of the 15% provided for in first quarter of 2016.Further, Income tax for the second quarter of last year includes an additional charge of OMR 0.9m (YTD 2015 – 0.9m) on account of the tax years 2008 to 2013.

 

Total number of customers grew by 3.2%, to be 2,841,472 at the end of the first half of 2016 compared to 2,753,140 for the same period of 2015.

The fixed service customer base increased by 28.7% to 80,292 customers in Q2 2016 compared to 62,410 in same period 2015. The mobile post-paid customer base grew by 5.1% to 212,352 customers compared with 202,026 customers in Q2 2015. The mobile pre-paid customer base for Q2 2016 increased by 2.4% to 2,548,828 compared to 2,488,704 for the same period last year.

 

Commenting on the results, CEO of Ooredoo Oman, Greg Young, said:

“We are pleased with our revenue growth in this first half of the year and this is confirmation of our continued focus on customer needs. Our growth is largely driven by a continued rise in data demand in the mobile and fixed markets, as well as a significant increase in fixed customer numbers.”

“The growth is also a result of our continued network investment, both to modernise and increase coverage. On the back of this, we have developed a number of inspiring products, promotions and services, such as our Superfast Fibre Home Broadband packages, our popular daily Ooredoo Surprises and attractive Shahry Business Pack offers, to meet the changing needs of customers and businesses in all sectors across the Sultanate.”

“Customer service remains one of our primary business drivers and this is reflected in some significant awards we have won this quarter. We continue to innovate customer excellence across all of our touch-points.” 

“We will build on this strong first half with the input of the entire Ooredoo family and I would like to thank them for their continued contribution to our success and growth.”