Mubasher: NBK Capital, the investment arm of National Bank of Kuwait, retained its “Hold” recommendation on Oman Telecommunications Company (Omantel) share, and maintained the stock fair value at OMR 1.82 per share, according to a report issued Monday.
The financial services firm reported that the recommendations came after the announcement of the telecom firm’s financial results for the period ended 30 September, 2015.
The report added that the telecom provider ’achieved good set of results’ that came ahead of its estimates and Bloomberg consensus, as the company’s tax expenses dropped by 50% on a quarterly basis to OMR 4 million in the third quarter of this year.
NBK Capital’s report attributed the fall in taxes to the regulatory changes in Pakistan, which forced WorldCall Telecom Limited, a subsidiary to Omantel, to pay OMR 3.3 million in the second quarter of 2015.
Omantel revenues rose by 6.5% year-on-year but steadied quarter-on-quarter at OMR 126.7 million. They are 2% higher than NBK Capital estimates of OMR 124 million and 1.1% above Bloomberg forecasts of OMR 125 million.
The company’s net profit plummeted by 2% on an annual basis, with a rise of 10% on a quarterly basis to OMR 29.4 million, which is 9% more than NBK Capital expectations of OMR 27 million, and near to Bloomberg estimations that reached OMR 28.8 million.
The Muscat listed company’s third net quarter profit came to OMR 90.7 million ($234.6 million), versus OMR 65.9 million ($248.07 million) in the same period of 2014.
