Nawras posts profit decline of 22% in H1
Investment in network and lower EBITDA erodes H1 profits
Nawras, Oman's second telecom operator, posted a net profit of OMR15.2m ($39.5m) for the first half of 2013. This represented a decline of 22% compared with the telco's net profit of OMR19.5m in the same period of 2012.
The operator attributed the decline to lower EBITDA and higher depreciation cost due to an extensive network modernisation programme.
Total revenues for the first half of 2013 increased by 3.3% to OMR98.4m compared with OMR95.3m for the same period of 2012.
The growth was driven by increases in fixed and mobile data revenues, which were offset by decreases in SMS and national voice revenue.
EBITDA for the first half of the year stood at OMR46.9m compared to OMR47.9m for the first six months of 2012.Nawras expanded its customer base by 13.1%, to almost 2.3m at the end of the first half of 2013.
Year on year, Nawras' mobile post-paid customer base grew by 5.8% to 185,705. The telco's mobile pre-paid customer base increased by 13% to 2.05m customers compared to 1.8m customers at the end of H1 2012.
The operator's fixed service customer base grew by nearly 54% to 56,598 customers from 36,787 customers for the same period of 2012.
Ross Cormack, CEO, Nawras, said: "Despite the challenges of a competitive environment, our total customer numbers have increased for the sixth consecutive quarter while at the same time we sustained our revenue growth during the period.
"Growth in revenue was driven by increases in both fixed and mobile data offset by a decrease in SMS and national voice revenue. During the first half of 2013, we have already delivered a noticeable difference in the broadband Internet experience for our customers living and working in areas already completed as part of our Network Turbocharging programme."