Nawras sees profits dip 13.4% in Q4
Net profit dented by lower EBITDA and higher depreciation
Omani operator, Nawras, reported a net profit of OMR 10.3 million ($26.7m) for the fourth quarter of 2012. This represented a decline of 13.4% decline compared to the same period last year.
Revenues increased by 1.2% over the same period, to reach OMR 51.4 million in Q4.
EBITDA achieved in Q4 2012 was OMR 26.2 million, a decline of 2.3% compared to OMR 26.8 million in the same period last year.
Profits for the full year 2012 dropped by 22.1% to OMR 37.0 million compared to OMR 47.5 million in 2011.
Full year revenue was OMR 193.5 million compared with OMR 196.9 million of 2011 with a decline of 1.7%. The decline in revenue is primarily driven by a reduction in SMS and on net voice revenue, partially offset by growth in both mobile and fixed data revenues.
Nawras said that net profit was affected by lower EBITDA as well as higher depreciation partially offset by lower interest cost. Higher depreciation was driven by increased investment in network modernisation while lower interest cost was due to decrease in outstanding debt, the telco said.
Nawras's fixed service customer base grew by nearly 62.9% to 44,261 in 2012 compared to 27,000 at the end of 2011. The mobile post-paid customer base increased by 3.4% to 179,000, while the mobile pre-paid customer base increased by 11.9% from to 1.96 million in 2012.
Sayyid Amjad Al Busaidi, chairman of Nawras said: "Our focus in 2012 was on new customer-driven initiatives; delivering the technology to increase customer choice and to bring telecoms, media and data to a larger percentage of our population. We also made substantial investments in people training and development."
Ross Cormack, CEO, Nawras, added: "It is pleasing to report that our customer numbers continued their upward trend in the year 2012, resulting in the best acquisition figures since 2010. We now have nearly 2.2 million customers, an increase of more than 11% on 2011."