Page 18 - SAMENA Trends - August 2020

REGIONAL & MEMBERS UPDATES SAMENA TRENDS

Omantel Records Net Profit of OMR 100 Million

in First Half of 2020

Oman Telecommunications Company Million compared to RO 232.5 Million in and travel coming to a halt leading to
S.A.O.G Group announces its financial 2019, a decrease of 5% YoY which had a reduction in roaming revenues, decline in
results for the six-month period ended significant impact on EBITDA and net profit Mobile Broad Band revenues on account of
30th June 2020 achieving a net profit of during the period. On the international substitution effect with Fixed Broad Band
R.O 100.5 Million (before non-controlling operations side, Omantel’s international revenues, increase in impairment charges
interests) compared to R.O 126.5 Million wholesale business diversification (as required by IFRS 9) on the Enterprise
in 2019, a decline of 20.5%. This decline strategy helped the Company to grow the and Government segment which is in
on the business was mainly driven by international capacities business by 7.6% line with the recent rating downgrades
a 27% year-on-year (YoY) decline in in the first half of 2020 compared to 2019 announced by the rating agencies in
Group's net profit for the second quarter which continues to exhibit a high amount addition to the lower collection realized
of 2020 due to the unavoidable impacts of resilience. Proactive Cost Optimization during the period. Commenting on these
of COVID-19 pandemic, predominantly measures on both Opex and Capex results, Talal bin Said Al-Mamari, CEO of
on the core mobile business. The Group which included contract renegotiations, Omantel said, “There is no doubt that the
recorded relatively stable consolidated cancellation and re-scheduling of some Corona pandemic and the precautionary
revenues reaching R.O 1242 Million in capex projects, efficient cash flow measures taken by the concerned
first half of 2020 compared to R.O 1258 management among others have resulted authorities to alleviate its effects have
Million in 2019. Omantel Group achieved in overall reduction of 6% in operating affected all business sectors around the
these results despite the impacts of and administrative expenses YoY. Zain world. Omantel proactively sought to
COVID-19 pandemic that virtually halted Group contributed RO 94.8 Million to the mitigate the impacts of this pandemic, first
economic activity and travel across the net profit in the first half of 2020 (before by focusing on providing vital connectivity
region. Omantel’s management priority non-controlling interest) of Omantel Group to all to ensure access to essential medical,
was to ensure its network was operating at compared to RO 114.8 Million in 2019 a commercial and financial services. Second,
optimal levels to provide vital connectivity decrease of 17.4% YoY. After adjusting our business continuity strategy saw the
to the Omani authorities and community, for non-controlling interest, Zain Group implementation of a number of innovative
as demand for mobile and fixed broadband contributed RO 18.2 million in the first half measures and initiatives to mitigate the
reached historic highs. Furthermore, of 2020 compared to RO 21.4 Million in year effects of the lockdown on the business".
through its proactive steps and focused 2019. Among the key elements that had an Al-Mamari continued, "We are pleased by
strategy, management was able to mitigate impact on the margins were the decline the resilience of our business given that
the COVID19 impacts through a series in the overall voice revenue on account our domestic revenues grew by 11% and
of initiatives that included significant of free airtime offer launched from 27th overall Group revenues were relatively
investments in digital infrastructure March to 15th April 2020 to support the stable. This would have not been achieved
(Enhanced Mobile App, Portal and the Call community members to stay at home and if it were not for our dedicated employees
Centre) which helped in ensuring that the maintain social distancing, further decline who made sacrifices throughout this time
digital channels were available for the in enterprise voice revenue on account of crisis. Omantel ensured its employees’
customers to enjoy uninterrupted services. of the lock down, lock down resulting in safety by supporting and providing them
Moreover, Omantel earlier investments in closure of retail shops, partners outlets the necessary equipment to efficiently and
5G infrastructure helped to grow Home etc. leading to lower recharge, leisure safely function.”
Broad Band revenue by 8.1% in the first
half of 2020 compared to the same period
of 2019. Omantel domestic operations
revenue witnessed an increase of 11%
YoY reaching R.O 288 Million in the first
half of 2020 compared to R.O 259 Million
in the same period of 2019. This was
mainly driven by increase in international
transit international wholesale business
and handset revenues, which are typically
low margin revenue streams compared
to the core mobile operation’s revenue.
Adjusted for the above, core mobile related
revenues for first half of 2020 was RO 221

18 AUGUST 2020