Nawras Q3 profit up 8%

27/10/2011 00:00 AST

Omani telecoms operator Nawras on Wednesday reported an 8 percent rise in third-quarter net profit, beating an analyst estimate, as mobile data usage increased to offset falling subscriber numbers.

The firm, majority owned by Qatar Telecommunications Co. (Qtel), made a third-quarter net profit of 13.5 million rials ($35 million), it said in a statement to the Oman bourse. This compares with a profit of 12.5 million rials in the same period a year ago.

One analyst polled by Reuters forecast the operator would post a quarterly profit of 10.6 million rials.

"We are encouraged by growth in pre-paid mobile data, including Blackberry and smart phone revenue contributions, which confirms our belief in the potential of the mobile data market for Nawras," Chief Executive Ross Cormack said in the statement.

"Our roll-out of the fixed service network has more than doubled home and business broadband customers on a quarter-on-quarter basis."

Nawras said revenues increased to 49.2 million rials in the quarter, up from 47.7 million rials a year earlier.

The firm had 1.95 million fixed and mobile subscribers at September-end, down 3.6 percent from a year earlier. It said this was "primarily due to regulatory changes in the rules for counting the customer base".

Net profit for the nine months to Sept.30 was 35.6 million rials, down from 38 million rials in the same period of 2010.

"Net profit was affected by higher depreciation and amortization charges relating to the build out of the fixed and mobile networks," Nawras said.

Nawras's shares, which listed on the Oman bourse in November 2010, closed 0.2 percent higher, before the results were announced.

Reuters