(MENAFN- Muscat Daily) Muscat- Omantel reported a group net profit of RO59.9mn for the nine months period ended September 30, 2017 compared to RO95.1mn for the corresponding period of 2016, a decrease of 37 per cent.
Group revenue increased three per cent to RO406.8mn compared to RO394.8mn in the same period of the previous year, according to Omantel's preliminary unaudited results announced to the Muscat Securities Market on Sunday.
Omantel said the fall in net profit is predominantly attributed to increase in royalty rates effective from January 2017. The increase in royalty expense is RO18mn in 2017 compared to the corresponding period of 2016.
The company's operating expenses marginally increased to RO112.5mn in 2017 from RO111.3mn in the same period of the previous year.
Omantel said its net profit margin fell to 14.7 per cent for the first nine months of 2017 from 24.1 per cent in the same period of last year.
Omantel acquired 9.84 per cent shares in Kuwait's Mobile Telecommunication Company (Zain Group) on August 24. The company said its nine months 2017 results do not include Zain Group financials.
It said the investment in Zain Group is treated as an associate as per the requirements of IAS 28 and in accordance with the standards, share of results from the date of acquisition needs to be recognised in the consolidated financial statements.
'The above results does not include its share of results of Zain Group since their results are currently under finalisation. This will be considered in the group financial statements and communicated after approval of the board of directors', Omantel added.
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