Oredoo may report 13.8% Q1 profit rise today
OOREDOO arm Oman’s Nawras made its largest oneday decline in six months on Monday after the telecommunications operator posted a fifth straight drop in quarterly profit, weighing on a downbeat Muscat bourse.
Nawras dropped 6.8 percent, its biggest fall since October 22, to slump to a 10- week low.
Ooredoo, which is due to report its earnings on Tuesday, ended flat. Analysts on average forecast it will post a 13.8 percent increase in quarterly profit.
The operator, majorityowned by Qatar’s Ooredoo, reported a 21 percent drop in first-quarter profit on Sunday, missing analysts’ estimates.
“Capital expenditure is expected to be high this year, so 2013 will be a challenging period even with mobile penetration and data revenue increasing,” said Kanaga Sundar, Gulf Baader Capital Markets head of research.
Kuwait’s Wataniya, another Ooredoo subsidiary, last week posted a 31 percent drop in first-quarter profit, also a fifth straight quarterly decline.
Oman’s index fell 0.9 percent to a three-week low, but is up 6.3 percent in 2013.
“Omani equities are in a consolidation phase,” added Sundar.
“We expect range-bound activity to prevail during this quarter amid expectations of lower volumes during the summer.” Dubai’s index gave back early gains to end lower for a first session in seven, easing from Sunday’s 3-1/2-year high as investors booked gains in some of this year’s top performing stocks.
“The fact we hit a new high before closing lower could be a trigger for more profit taking in the coming days we need to take a breather,” said Sebastien Henin, portfolio manager at The National Investor.