(Domestic Fixedline, Mobile, Omantel International SPVs & Domestic Subsidiaries/Associates)

Omantel’s domestic operations include Fixed Line business, Mobile business, Omantel International (OTI)-Wholesale arm of Omantel engaged in international voice aggregation and our subsidiaries (Oman Data Park, Infoline, Future cities etc.).

Omantel maintained a 2.6% growth at domestic level, indicating a strong resilience towards competitive market conditions as well as the operational challenges. Revenue grew from RO 606.5 Mn. in FY 2023 to RO 622.6 Mn. in 2024.

Omantel continues to be the market leader in the Fixed Broadband segment with a healthy market share of 54.4% as of December 2024. In the mobility segment, Omantel continues to be the market leader with growth coming from postpaid segment (excluding M2M) which posted a growth of 7.4%.

Prepaid subscriber base declined by 7.9% in a fiercely competitive market however Omantel managed to mitigate the revenue impact partially by registering a healthy growth in value added services.

Domestic Revenue for the Financial year ended 31 December	2024 RO in Mn.	2023 RO in Mn.
Fixedline business	151.4	145.3
ICT business	12.1	10.3
Mobile business	187.2	187.5
Wholesale business	192.9	185.8
Device revenue	49.3	57.2
Total revenue	592.8	586.1
Revenue from domestic subsidiaries (including eliminations)	29.7	20.4
Total revenue – Omantel + Subsidiaries	622.6	606.5
Growth (%)	2.7	7.3

For the year 2024, Omantel’s fixed line business posted 4.1% growth supported by growth in fixed broadband revenue which registered a growth of 7% YoY. The growth in Fixed broad revenue was noticed across both Fibre to Home (FTTH) and Wireless Home Broadband services (WFBB). Growth in Fixed Broadband was supported by increase in Average revenue per user (ARPU) which increased by 5% YoY.

In the mobile market despite a high level of competition, Omantel continued to register a healthy growth in postpaid revenue which registered a growth of 6% supported by growth in subscriber base (increase of 7.4%) and increase in ARPU by 1.1%. Although prepaid revenue decreased by 5%, the decrease was significantly mitigated by growth in Value Added Services (VAS) portfolio which registered a healthy growth of 6%.

ICT business posted a 17.5% growth during the year which is in line with Omantel’s strategy of moving from a pure Telco player to a Tech co player. This growth is also evident from growth in revenue from Domestic subsidiaries which focusses primarily in providing ICT and Fintech solutions. Domestic subsidiaries registered a growth of 45.6% YoY with increase in revenue coming from Oman Data park and Tadoom.

Wholesale business posted a revenue growth of 3.8% mainly due to growth in international transit voice revenue, capacity sales revenue. While maintaining the existing wholesale business the future growth in Wholesale business will predominantly come from Zain Omantel International which is the vehicle through which the investments in Wholesale business will continue from Omantel and Zain Group.

EBITDA and Net Profitability (Excluding Zain Group)

A high degree of market challenges (i.e. additional mobile competition across both prepaid and postpaid segments in an already limited subscriber market, rapid data monetisation, declining conventional voice and SMS business etc.), continued to downplay operators’ revenue and income.

Omantel’s EBITDA stands at RO 180.3 Mn. in 2024 compared to RO 169.5 Mn. in 2023. EBITDA for the year includes a one-time gain of RO 13.2 Mn., representing the settlement of a financial claim related to services provided by Omantel prior to 2020. Excluding this, EBITDA posted a marginal decline of RO 1 Mn. This decrease is attributed to increase in certain costs attributed to the implementation of new strategy.

Net profit attributable to shareholders of the Company for the year 2024 stands at RO 69.7 Mn. compared to RO 68.3 Mn. in the previous period. Increase in net profit is attributed to the increase in EBITDA which was offset by increase in depreciation and amortisation by RO 6.3 Mn. and voluntary end of service cost of RO 3 Mn. The increase in depreciation and amortisation is on account of our continuous investment in network to increase revenue and enhance customer experience.

Overall assets depict a strong financial position, at the backdrop of both organic (network infrastructure) and cross border (Zain Group) investments. Omantel’s Non-Current Assets, principally telecom equipment, investments and facilities currently account for 83% of overall asset base.

Shareholders’ equity posted an increase of 3.5% during 2024. The Shareholders’ equity increased from RO 763 Mn. in 2023 to RO 790 Mn. in 2024.

Revenue and Subscribers – Domestic Operations

Fixed Line Business

Fixed line Business includes national and international fixed line voice, fixed broadband, dedicated internet and enterprise data services.

Fixed broadband revenues increased by 7% on the back of an increase in ARPU and a stable subscriber base. Fixed broadband ARPU for the year 2024 stood at RO 27.1 compared to RO 25.8 in 2023.

Mobile Business

In the mobile market inspite of a high level of competition, Omantel continued to register a healthy growth in Postpaid revenue which registered a growth of 6% supported by growth in subscriber base (increase of 7.4%) and increase in Postpaid ARPU by 1.1%. Although prepaid revenue decreased by 5% the decrease was significantly mitigated by growth in Value added services (VAS) portfolio which registered a healthy growth of 6%.

Operating Costs (Including Cost of Sales):

Total operating expenses (including cost of sales) amounted to RO 564.4 Mn. in 2024, increase of 4.4% over FY 2023. Increase in Operating expenses is driven by increase in Cost of sales (4% YOY), Operating and admin costs (4.9% YOY), Depreciation and amortisation (6.1%).

Increase in cost of sales is in line with increase in revenue from transit voice revenue, Fixed Broadband revenue and ICT solutions revenue.

Increase in Operating and admin costs in 2024 is on account of costs attributed to implementation of new strategy and management fees payable to Zain Omantel International for managing the Wholesale Business of Omantel.

However, Omantel’s continuous focus on cost optimisation has ensured the controllable opex to remain within the targeted levels.

As a percentage of total revenue, Omantel’s domestic Opex to revenue ratio remained at 90.6% in 2024 compared to 89% as recorded in 2023.

Financial year ended 31 December	2023 RO Mn.	2024 RO Mn.
Cost of sales	277.7	288.8
Operating and administrative expenditure	153.2	160.9
Depreciation and amortisation	102.6	108.9
Provision for impairment of receivables	5.9	5.7
Total operating expenditure	539.6	564.4

Capital Expenditure

Omantel incurred a total capex of RO 96.9 Mn. during the year, out of which the network infrastructure capex stands at RO 80.9 Mn. and was predominantly spent on 5G rollout and 4G network expansion. We continue prioritising our network and other capital expenditure during the year, with core focus on undertaking growth oriented critical investments, that support our 5G network buildout, ICT and digitisation initiatives etc.

Free Cash flows

Free cash flows posted a 19.6% reduction compared with the cash flows generated in 2023.

Key reasons for decrease in cash flow is on account of increase in cash flow from capex which increased by RO 37.1 Mn. which was partially offset by increase in cash flow from operations by RO 33.6 Mn. Cash flow from operations increased on account of healthy collections on enterprise receivables.