Q2 2025 Oman Telecommunications Company SAOG Earnings Call Transcript
Key Points
- Oman Telecommunications Co SAOG (MUS:OTEL) reported a 9.5% increase in group revenue, reaching OMR1.6 billion.
- The company achieved a 46% year-on-year increase in net profit, driven by strong performance from the Zain Group.
- Reduction in mobile service royalty rates from 12% to 10% is expected to positively impact financials.
- Omantel's strategic partnerships and infrastructure investments have positioned it as a leading technology player in the region.
- The company has successfully expanded its ICT revenue by 69.2% year-on-year, driven by smart solutions and cloud services.
- Net profit for the domestic market decreased by 9.5% year-on-year, primarily due to increased depreciation costs.
- Free cash flow decreased by OMR16.6 million year-on-year, impacted by reduced cash flow from operations.
- The company's net leverage is elevated at 3.5x, above the medium-term target of 2.5 to 2.7.
- Increased competition in the mobile market has led to price wars, impacting profitability.
- Service expenses have risen due to increased investments in digital channels and IT infrastructure.
Greetings, ladies and gentlemen. This is Aisha Balushi, and I welcome you all to our H1 2025 results presentation. It's my pleasure today to host you all on behalf of Omantel's senior finance management team. Today joining us is Mr. Ghassan Al Hashar, Chief Financial Officer; and Mr. Sudhakar, General Manager, Financial Control; and Mr. Wahbi Al-Riyami, General Manager, Treasury; and also Mr. (inaudible), chief strategist to the CFO.
By now, you should have received the investor presentation alongside with the general report and the consolidated financial statements which also have been posted on the IR. During this call, we would make forward-looking statements on current assumptions, such as statements that are only applicable as of the date of the presentation and the company assumes no obligation to update them. (Operator Instructions)
Now, I will hand over to Mr. Ghassan to walk us through -- of the key highlights of this quarter over to you, Mr. Ghassan.
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