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Omantel shows growth of 48.8% in Q2 (Oman)

  • August 5th, 2008
  • 2:14 pm

Omantel reports net income of $95 million for the second quarter of 2008, rise of 48.8% with the growth of subscriber and cost cuts. At the end of the June net income grew 54.4%. CEO Mohammed Al Wohaibi said “he hopes the company will maintain for the entire year”. Corresponding to last year, Quarter’s Revenue stood at OMR 201.1 million, up by 14.3%.

Omantel 25% stake timetable preponed from September to August (Oman)

  • August 1st, 2008
  • 7:27 am

The Oman government has the sale of 25% stake in Oman Telecommunications’ timetable, as reported by Oman Ministry pof Finance Web site.

The deadline for selected parties to submit first-round proposals has been preponed from September to August, with the second rounds due in the fourth-quarter.

Earlier this month, the Government of Oman had reported to sell 25% of its 70% stake in Omantel to a “suitably qualified” strategic bidder.

   

Saudi Telecom seeks 25 percent stake in Omantel (Oman)

  • July 23rd, 2008
  • 1:16 pm

In order to strengthen its market position both in the Sultanate and abroad, Omani Government announced to sell off a part its stake. Following to this Saudi Telecom Co., the Arab world'’’s largest phone company is set to bid for 25 percent stake in Oman Telecommunications Company (Omantel).

The stake in the state-controlled telco is valued at $1.15 billion at current market prices. The government, which currently owns 70 percent of the company’s shares, would give an investor economic and voting rights in the firm, according to Ministry of Finance.

The Omani government will present a short list of buyers for the stake by the end of July as per recent updates.

Telecom Sector of Oman towards liberalisation (Oman)

  • July 21st, 2008
  • 2:30 pm

 25% stake in the Oman Telecommunications Company (Omantel) up for sale.According to the MoF’s secretary general, the further privatisation of Omantel is another example of the government’s commitment to liberalising the economy.

On July 7, Oman’s Ministry of Finance (MoF) said it was seeking submissions from strategic investors to buy into Omantel, with the state planning to lower its stake in the company to 45%. At the current trading price for Omantel shares, the 25% stake in the company would be worth $1.15bn, with the entire company valued at $4.6bn.

“The Omani telecom market still has excellent growth potential and Oman offers an attractive economic environment which we are certain will appeal to bidders,” the MoF further added.

Oman is moving quickly with the privatisation process, having set a deadline of July 18 for the submission of initial bids. It intends to close on the sale before the end of 2008.

A series of conditions have been set for the sale to ensure the interests of the company, and the country, are protected, despite the government seemingly looking to reduce its involvement.

The terms of the sale include a requirement for bidders to have substantial experience in operating fixed line and mobile services, and an operational presence in several countries with a minimum of 5m active subscribers, including at least 2m in a single market. Omantel’s new strategic partner must also give a commitment to retain their stake in the company for at least five years.

The government mooted the latest dilution of its holding in Omantel late in 2007. The initial stage of the company’s privatisation took place in 2005, when the firm was listed on the Muscat Securities Market and 30% of its shares taken up by public and institutional buyers.

The Omantel sale is expected to generate considerable interest, given the company’s perceived potential for growth potential. It has a monopoly on fixed telephony and internet services, and has room for more expansion. As of the end of 2007, Omantel had 270,000 fixed line subscribers - approximately 10% of the population - and 69,000 (3%) internet customers. Both figures are among the lowest penetration rates in the region.

In contrast, the telco’s mobile phone division has a 60% share of the market, with rival operator Nawras holding the remainder. Between the two there are 2.48m subscribers, representing a take-up rate of 96%, though here too there is potential for growth. A number other Gulf countries have a penetration rate of more than 100%, with many subscribers owning more than one mobile phone.

The company has performed strongly in its local market, with net profits of $502m last year from overall revenue of $950m. Unlike many other telcos in the region, Omantel has not to date made significant moves in expanding beyond its home base, its only major overseas investment being Worldcall Telecom of Pakistan, which it bought for $193m in April 2008.

Despite its successes and strength in the local market, Omantel is seen by analysts as in need of further investment if it is to continue to develop, with the government unwilling to commit funds.

Size has become one of the main requirements for regional telecom operators to be successful said Jithesh Gopi, head of research at Bahrain-based SICO investment bank.

“It becomes increasingly difficult for smaller operators like Omantel to compete in these markets. When you have a strong strategic partner who has deep pockets and scale, upgrading technology and investing in the local market becomes easier,” as told to local press.

Even before the terms of the sell-off were announced, Omantel already moved to bolster its finances. On June 24, Omantel announced it had sealed a $205m syndicated loan through Mashreq Bank, the company’s first ever debt financing.

Mohammed Bin Ali Al Wohaibi, Omantel’s chief executive officer, said the deal constituted a fresh step by the company towards entering the international financial market for its external investments in the telecom sector.

The loan would expand the company’s investment base not only in the sultanate but also at the regional and international levels, he added.

The loan facility is relatively small, just slightly more than the amount Omantel paid for Worldcall. Funding a major programme of expansion or acquisition - as the government intends - will require a larger injection of funds. This where a private strategic partner can help.

 

   

Omantel-Mena deal signed (Oman)

  • July 21st, 2008
  • 1:31 pm

Omantel has signed a submarine cable deal with Orascom affiliate Middle East and North Africa (Mena) Company, positioning the country as a regional hub for international traffic as reported by Gulf News. The agreement paves the way for the landing of a key fibre-optic cable on the sultanate’s coast, opening a new gateway for international telecom traffic covering voice, data, internet, video and e-commerce. Mena Cable Project worth $400 million will connect a number of countries in the region. The 8,000km cable, offering a total capacity of 5.7Tbps, will pass through Oman, Italy, Greece, Egypt, Saudi Arabia and India. It will land at Seeb in Muscat in the third quarter of next year.

Omantel posts record net income for first quarter (Oman)

  • April 29th, 2008
  • 3:14 pm

Omantel has posted record net income of OMR38.4 million (USD99.7 million) for the first quarter of 2008, up 60% year-on-year and comfortably ahead of analyst expectations. The result reflects a 15% increase in revenue to OMR98.2 million for the three months, and a 3% fall in operating expenses to OMR57 million. Shares in the company jumped almost 7% to their highest level since 2005.

   

 

 

Omantel buys stake in Worldcall (Oman)

  • February 19th, 2008
  • 2:11 pm

Omantel has finalised an agreement to buy control of Pakistani operator Worldcall Telecom. The company will acquire 60 percent of Worldcall from its shareholders plus a 5 percent stake from the Pakistan Securities Market. The transaction will include 70.65 percent of Worldcall’s subsidiary operations in Sri Lanka. The total consideration for the takeover is USD 193 million. Omantel intends to fund the acquisition through long-term debt. Worldcall offers voice and internet services in Pakistan, via metro fibre, hybrid fibre coaxial and wireless local loop.

   

Etisalat interested in Omantel (Oman)

  • October 22nd, 2007
  • 7:00 am

UAE incumbent Etisalat has said it would like to buy into and run state-controlled Oman Telecommunications (Omantel), which is preparing to court a long-term investor. Omantel’s stock surged 10% on the news, the first public expression of interest in the telco since Oman’s government said earlier this month that it would sell a stake in the company to make it more competitive. ‘Oman is a growth market, and there are synergies for us in the Middle East,’ said Jamal al-Jarwan, chief executive of Etisalat International Investments, adding that he expected the sale to include a contract to manage Omantel, although he declined to be drawn on how much Etisalat would consider investing. The government owns 70% of Omantel and the rest is traded on the Omani exchange. It has not given any details about the sale process.

Etisalat, the third largest Arab telecom operator by market value, has spent more than USD6.5 billion on foreign acquisitions in the past three years resulting in a strong presence across the Middle East and Africa. Its largest investments outside the UAE are in Saudi Arabia, Egypt and Pakistan. It is also known to be after mobile phone licences in Kuwait and Qatar, markets in which Omantel’s domestic rival, Qatar Telecommunications (Qtel) operates. In Oman, Qtel owns cellco Nawras.

   

 
 

Omantel to improve internet services (Oman)

  • October 3rd, 2007
  • 3:12 pm

State-owned incumbent telco Omantel has revealed plans to expand the reach and capacity of its high-speed broadband network to meet the rising demand for internet connections in the Gulf state. In addition, the operator intends to re-launch its dial-up internet with several ‘new and attractive features’ for the customer, according to company official Mohanned bin Dawood Al Asfoor. The moves, he said, are also a part of the company’s efforts to lend full support to the ongoing e-government project and nationwide ‘Digital Society’ campaign. No further details were given.

   

 

 

Omantel connects two more villages (Oman)

  • September 26th, 2007
  • 1:33 pm

Oman Telecommunications Company (Omantel) has connected the remote interior villages of Oafa in Bahla and Wadi Saqt in Samail to the PSTN, via a wireless local loop (WiLL), as part of its universal service obligation. The telco began deploying WiLL networks in rural and underserved regions in 2003, complemented by VSAT links to connect the most remote areas; in March 2006 it contracted Chinese vendor Huawei to carry out WiLL installations in 200 settlements and bring services to an additional 28,000 subscribers. Over 160 villages have now been connected.