Revenue increased by 10% YoY, in line with our estimates
Omantel reported a 1Q25 revenue of OMR 803.6mn (10% YoY and 2% QoQ), in line with U Capital estimates.
Net profit increased 22% YoY, ahead of our estimates
Omantel reported a 1Q25 net income of OMR15.7mn (22% YoY and -53% QoQ), ahead of U Capital estimates.
Maintaining Target Price
Omantel experienced a robust YoY growth in 1Q25, with revenue increasing 10% YoY and net income rising 22% YoY. This significant growth in net income is attributed to higher investment income from the Zain group. We believe contribution from Zain will continue to drive Omantel’s revenue, followed by fixed-line broadband and Postpaid business in the domestic market. We maintain an Accumulate rating on the stock with a target price of OMR 1.218 per share.