Oman Telecommunications Company SAOG (OTEL) Earnings Call Transcript & Summary

As-salamu alaykum, everyone. Greetings, ladies and gentlemen. This is Aisha Balushi, and I welcome you to Omantel Q1 2025 MSX Session Call. It's my pleasure to host you all on behalf of Omantel's senior finance management team today. Joining us are Mr. Dharmendra Kumar, Senior Strategist, Finance Office; and Mr. Sudhakar, General Manager, Financial Control; and Mr. Wahbi Riyami, General Manager, Treasury. By now, you should have received the company's presentation and Q1 financial statements, both of which have been uploaded to Omantel's website and MSX. During this call, we will make forward-looking statements. These are predictions, projections or other statements about future events based on current expectation and assumption and are subject to risks and uncertainties. [Operator Instructions] Now I will hand over to Mr. Dharmendra Kumar to walk us through the main highlights of the quarter. Over to you, Dharmendra.

Thank you, Aisha. Good afternoon, everyone. We are pleased to announce Omantel Group results for the quarter ending 31st March 2025. All the numbers that I'll be quoting are in Omani rials. The gross revenue for the quarter 1, it stands at OMR 803.6 million, witnessing an increase of 10.4% year-on-year. The group revenue, it includes Zain Group with a revenue of OMR 667.6 million. Group's EBITDA for the quarter stands at OMR 253.8 million, witnessing an increase of 11.9% year-on-year. The group net profit after tax has increased to OMR 64.9 million compared to OMR 40.6 million in the same quarter in 2024, showing an increase of 60%. The net profit attributable to shareholders of the company for the period stands at OMR 15.7 million compared to OMR 12.9 million last year, witnessing an increase of approximately 22%. Now talking about our domestic performance. Revenues increased to OMR 164 million in Q1 versus OMR 152.7 million same period in 2024, showing an increase of 7.4%. EBITDA for Q1 2025 stands at OMR 41.6 million and net profit at OMR 33.4 million. In terms of the key highlights for the first quarter, besides the ongoing efforts which have been initiated by Omantel transitioning itself from a telco to a techco company, one of the key highlights for Q1 worth mentioning is the strategic partnership between Omantel and Airgain, which is a leader in wireless connectivity and antenna technologies. Now this partnership reaffirms our commitment to driving digital transformation, fostering innovation and advancing global connectivity. Now for further details, I'll hand it over to Aisha, who will walk you through the IR presentation. Over to you, Aisha.

Thank you very much, Mr. Dharmendra. Now we will begin with a macro overview of economic developments and key indicators, followed by an in-depth review of Omantel's financial and operational performance over the past year. Oman has made significant progress in economic development through strategic reforms and diversifications and improved fiscal management and government policies. These efforts have strengthened economic resilience, expanded non-oil sectors and attracted foreign investments. Notably, the GDP-to-debt ratio has shown positive trends, decreasing from 68% to a record of 35% in the first quarter of 2025. Among the sovereign credit ratings, the S&P Global upgraded Oman to investment grade due to physical consolidation and diversification advancements, and Moody's affirmed a Ba1 rating and improved the outlook from stable to positive, while Fitch affirmed a BB+ rating with a stable outlook. These ratings reflect the effectiveness of physical management and economic reforms fostering long-term growth. Oman's economic outlook remains optimistic underpinned by strategic reforms and investments in key sectors. At Omantel, we continue to align with the national agenda, recognizing significant opportunities for growth and value creation in the coming years. I would like to announce that Omantel has published its sustainability report for 2024. If you have the interest to read more about Omantel's sustainability initiatives, please access Omantel website to have more information on our sustainability efforts. Moving to Omantel Group, key telecom and technology player in the region. Omantel has more than 50 million customers across 8 MENA countries. And for the first quarter, we have recorded USD 2 billion in revenue, having the most connected operator subsea cables in the Middle East, with more than 20 subsea cable system worldwide having access to more than 120 cities around the globe. Now to the second slide on Omantel's journey of growth and innovation. In the first quarter, we continue our efforts from last year where we are marking a substantial progress in evolving from a telecom company to a technology group, building on the foundation of our Shift Gear strategy, which was launched in 2021. We are now stepping forward with the Portal to the Future strategy. Omantel Group is evolving beyond traditional telecommunications, is striving to become a leading technology powerhouse in the region and our investment in infrastructure, including cloud services and space technology and our regional expansion and Zain reinforce our commitment to high-growth areas. These efforts strengthen our role in driving digital innovation while maintaining market leadership in Oman core telecom industry. Now let's explore our expanded geographical presence across 8 markets where we proudly serve over 50 million customers. At Omantel Group, we are proud to witness another strong quarter from our regional footprint with operation across 8 markets now serving over 50 million customers. Our investment in Zain continues to yield a robust performance. In Iraq, Zain delivered double-digit growth across all key financial metrics, revenue up by 13% and net income surging to 73%. Driven by commercial innovation and strategic network investments, in Sudan, recovery exceeded expectation. Revenue more than doubled and EBITDA rose over 400%, and customer base growth reached almost 110%, a testament to agile crisis response and digital resilience. Jordan sustained its leadership with a solid 7% increase in revenue, supported by 5G rollout and continued fiber expansion. In Saudi Arabia, Zain enterprise and fintech lines drove top-line growth with net income rising 40% on the back of strong B2B and digital momentum. Kuwait maintained its leadership position, contributing 38% of the revenue and 50% of market net income, underpinned by digital and enterprise growth. In addition to the positive performance of the first quarter of the group, which further supported through the expanding impact of our new growth verticals, namely ZOI, ZainTech, fintech, this new growth vertical delivered an additional OMR 124 million in revenue for the first quarter, a remarkable growth of 185% year-on-year and now accounting for 11% of the total group revenue. Notably, ZOI has achieved a remarkable 371% increase in revenue year-on-year, while ZainTech recorded an impressive 184% growth year-on-year. We are seeing many positive signs of recovery in Sudan as the network restoration has reconnected over 5.8 million customers and is leading to a significantly better operational performance. I would also like to share with you that the Board has approved to renew the minimum annual cash dividend policy of OMR 0.35 per share for another 3 years, extending until 2028. As we evaluate Omantel Group operational and financial performance for the first quarter of 2025, we are proud to report an exceptional start to the year with a strong double-digit growth across all key financial KPIs: revenues, EBITDA, and net income. The revenue has increased 15% year-on-year and the EBITDA has increased also 15% year-on-year and net profit increasing to more than 66% year-on-year. Moving to the domestic performance. Our continued investments in strengthening our core combined with a forward-looking focus on emerging technologies have positioned Oman as a leader in the mobile and fixed line services. This strategic step has not only fueled our growth but also insulated us from the pressure of intense market competition. Starting with our core business performance in the mobile segment, despite challenging market conditions, we have successfully protected our market position in our stable subscriber market share of 39% and slightly increased the mobile revenue. Meanwhile, in the fixed line business, our market leadership remains strong at 54.4%, evident by a 6.5% revenue growth driven by a robust performance of our fixed broadband services and the migration from copper to HBB and 5G wireless access. While the ICT business posted a 61% growth during the year, aligning with our strategy of evolving from a pure telecom provider to a tech-driven company, this growth is also reflected in the increased revenue from our focus on ICT and fintech solution and IoT. Now moving to our domestic financial indicators. Revenue for the first quarter has reached, as mentioned by Mr. Dharmendra, OMR 164.1 million, reflecting a 7.4% year-on-year increase driven mainly by fixed broadband and devices and hubbing and contributions from IoT, while EBITDA has declined by 3.5% and net profit by 7.5%. A detailed explanation of these financials will be covered under company financial and domestic operations. Now moving to our Omantel Group performance. Our total subscribers rose by 19.8% to 54 million, driven by an 8.3 million increase in Zain's group base, mainly from Sudan and Iraq, and the 600,000 gain in Omantel's domestic base, supported by growth in fixed broadband and M2M services. While the group revenue has posted 10.4% increase year-on-year, supported by both the domestic growth and a strong OMR 85 million uplift in Zain Group revenue, key contributors include Sudan by almost 112%, Iraq by 13%, Bahrain by 8%, and Jordan 7%, and KSA by 6%. While the group EBITDA rose by 11.9% to almost OMR 253.8 million, this was primarily led by Zain's improved performance with major contribution from Sudan and Iraq and KSA. While the net profit for the group has increased to OMR 64.9 million, while profit attributable to Omantel shareholders rose to almost OMR 15.7 million, up by 21.7% year-on-year, this reflects a stronger EBITDA performance and higher investment returns from Zain Group. These results underline Omantel's continued strength as a regional telecom leader and driven by strategic investments and operational resilience across its footprint. Now moving to Omantel Group performance from domestic to consolidated profit, 2025 versus 2024. This is just a snapshot to see the domestic profit to group profit after minority from OMR 35.5 million to OMR 15.7 million. Moving to domestic performance in 2025. In the first quarter of 2025, Omantel domestic business recorded a revenue of OMR 164.4 million, reflecting a 7.4% year-on-year increase. This was driven by growth in fixed broadband device and transit revenue, along with OMR 3.7 million increase in ICT revenue mainly from IoT solutions. While EBITDA stood at OMR 41.6 million, slightly down by 3.5% from last year, the decline is attributed to higher impairment provision and increased operating expenses tied to investments in emerging tech and fintech. However, gross margin improved by OMR 2.3 million, supported by broadband and stable mobile revenue. The net profit for the quarter came in at OMR 33.4 million, marking a 7.5% decline, mainly due to the dip in EBITDA and higher depreciation and unrealized investment losses. Looking ahead, the profit is expected to improve as impairment provisions reduce and growth in connections. Now moving to the business performance. Omantel continues to demonstrate effective base management through strong retention and upselling strategies in challenging market environment. We have achieved a net migration of more than 15,000 customers from prepaid to postpaid, reflecting our focus on value-driven customer acquisition and life cycle management. As of Q1 2025, the postpaid subscribers rose significantly to 1.82 million, up from 1 million last year. The fixed broadband also grew steadily to 300,000 subscriber, maintaining leadership in this segment. On ARPU, fixed broadband increased to OMR 28.5 per month, up from OMR 26.4, driven by migration to high-value fiber and wireless service. The prepaid ARPU remained on the same levels and postpaid ARPU slightly declined to competitive pressure while we maintain a strong market leadership both in mobile and fixed broadband. Moving to the cost analysis summary. In the first quarter, Omantel recorded a 12.8% year-on-year increase in cost of sales, in line with the increase of revenue reaching to OMR 79.3 million. This primarily was driven to higher transit-related costs of almost OMR 3.2 million and devices sales of almost OMR 2.3 million and charges payable to OBC for growth in fiber broadband revenues of OMR 1 million and ICT cost of OMR 3.2 million. On the operating cost and administration expenses also rose by OMR 8.2 million, reaching OMR 40.9 million. The increase reflects our continued investments in digital infrastructure and emerging technologies, along with shift in inventory licensing models from CapEx to OpEx. Despite the increase in the costs are aligned with our long-term growth strategy and digital transformation road map, on the CapEx addition, the CapEx investments is primarily on 5G upgrade and 5G and 4G upgrade sites and also in digital channels such as marketplace platform. Moving to the last slide on the domestic debt profile. In the first quarter, free cash flow has decreased by OMR 12.5 million year-on-year on account of higher OpEx payments from previous year in devices and operators related. Usually, the first quarter, to note, it's typically characterized by elevated operating expenditure. However, we expect free cash flow to recover in the upcoming quarters and remain aligned with historical year and trends, excluding any planned investments in subsidiaries. And we continue to maintain a strong credit position with Moody's rating us at Ba1 positive and Fitch at BB+ positive. The group net debt-to-EBITDA ratio stands at 3.2x, excluding these liabilities, around 2.2x, reflecting a prudent financial management despite strategic investment. Now we will open the session for questions.

For anyone who has any question, please raise your hand or use the chat facility. Any question? Yes please, Ziad?

Just a few questions from our end. First, on the domestic Omani market, what are you seeing in terms of competition when it comes to the postpaid segment, especially that Vodafone now is active on that front? And the second question is on Iraq. Are there any updates on the fourth mobile network operator, Vodafone entering the market with 5G service offerings? And third, perhaps if you could give us some color on the situation in Sudan. Are you still seeing strong growth going into the second quarter? And do you have any issues in repatriating cash from that market?

Thank you very much, Ziad. I would like to invite Mr. Sudhakar to support with answering your questions.

Ziad, see, your first question is on the domestic market. Let me give you a flavor both on the mobility side and on the fixed broadband side. First on the mobility side, Vodafone has been there for quite some time now. In terms of subscriber market share, you would have seen that our market share is close to around 40%. But I think it is revenue market share which needs to be looked at. From a revenue market share perspective, we believe that we have a market share of close to around 51.8%, roughly around that. And this market share has been possible because of a significant growth in our postpaid base. Now our postpaid base, if we exclude the M2M subscriber base, year-on-year, that has increased by close to around 40,000 compared to last year. We have been continuously migrating our prepaid customers to our postpaid customers. Although the rate has slowed down this year because of the significant conversions which we have achieved in the past few years, we have been continuing with that strategy so our base has been quite resilient. You would see that our ARPUs are also pretty stable on the postpaid side. So on postpaid, our outlook is pretty positive although the growth is not on similar lines as what you have seen in the previous years. It is the prepaid market where it has been quite challenging. There have been quite aggressive pricing in the market, both through the above-line offers and the below-line offers. In spite of that, we have been able to maintain our ARPU at OMR 3.1, similar to what you have seen last year. And even our base also, we have been able to maintain that. Our churn rates in both postpaid and prepaid has been pretty low. But I think we see a bit of a challenge on the prepaid market where the increase in ARPU has been a bit of a challenge and even to maintain the ARPU has been a bit of a challenge. Much of this ARPU is maintained because of the growth in our value-added services, but on the core voice and data services, prepaid proves to be a challenge. Now coming to the fixed market. On the fixed broadband side, we have grown quite well. Although even fixed broadband now happens to be a well-penetrated market, the penetration is close to 79% in the market, which leaves room for growth for all the operators. And Omantel has been pretty good in capturing a significant share of the market, both on the fiber and on the wireless fixed broadband side. On fiber, we have the highest market share compared to the other operator. We have close to around 52% to 53% market share compared to the other operator on fiber. And even on wireless, we enjoy a very healthy growth in the subscribers. Besides this, even ARPU has grown significantly. You would see that the ARPU has increased by close to OMR 2, which is a very good sign. So that's on the mobility and on the fixed side. What was your second question, Ziad? This was relating to Zain Group?

Yes, that's very clear. Second question is actually on Iraq, the new player in Iraq with 5G license coming in, Vodafone specifically. But before touching on to that one, just a question on the domestic market. So AWASR isn't still offering any mobile services. They're still focused on the fixed segment.

Noted. AWASR has a mobile license so they are working on launching their services, but no, not in the first quarter. The first quarter, they did not launch any mobile services.

Any sort of expectations you think that before year-end, they're going to be active on the mobile segment?

We believe they will be active. I believe they are already discussing with the operators in terms of launching their services. And I think they, to some extent, have an advantage, right, because they're already operating in the fixed space so that gives them also an edge similar to any other operator, any other full-scale operator. But you have seen on the fixed side, we have been able to maintain the base in spite of very aggressive pricing from AWASR. So I believe on the mobility side, that will prove to be a challenge for a market size of Oman. So we don't see a significant growth in the mobile market size itself. It's more now the focus in terms of retention, ensuring that our value share is protected, and at the same time, ensure that there is a growth in complementary products like your value-added services and all that, which is where the growth is going to come in future.

All right. That's very clear. So yes, the second question is basically on Iraq, the new player, and if you manage to negotiate on also getting 5G frequencies and launching the service at the same time. Because I remember the discussion was they're going to have 1-year exclusivity rights when it comes to 5G. And the third question is on Sudan, the situation, if you're seeing recovery going into the second quarter and if you can repatriate cash from that market.

Look, on Iraq, Ziad, I think this was raised in the Zain investor call also. I think the operators, both Asiacell and Zain, I think we are challenging the decision of the regulator also in terms of awarding 5G license to the other operators. So that's still work in progress as we speak. So now on Sudan. On Sudan, the first quarter has been good. I think the right quarter to compare would be the fourth quarter of 2024 because last year, if you remember, the first quarter was a complete network shutdown. That had a significant impact on Sudan operations in terms of losing a significant base and the revenue. So compared to Q4 2024 actually, Sudan did quite well in terms of growth in subscriber base, and bulk of that growth has come from the capital city also, Khartoum, where we see that the displaced segment, they have been coming back to the country. But having said that, the fact that the Q1 performance is quite good but still the situation on ground is still not very good, I think that still needs to be watched because now we see that the situation in Khartoum has again further worsened. So the performance will -- its impact on the performance and all that is something which the team is continuously watching. But in terms of the number of sites and the group's focus in terms of investment in Sudan, that has been a priority. During this difficult time, they have been able to ensure that the network connectivity is provided. They have looked at various options of providing network connectivity. So Zain, like compared to any other operator, we have been able to give the network reach in majority of the regions. That's what helped the performance of Q1. But it remains to be seen whether this performance is something which we can replicate in the remaining quarters because that ultimately depends on how the situation evolves on the ground.

That's clear. On cash repatriation?

On cash repatriation, as of now, we don't see a challenge, but a significant outflow from Sudan would be a challenge because these have to go through the Central Bank of Sudan approval. And considering how the market in Sudan is, you have seen the foreign currency, the depreciation of Sudanese pound also. So there, we might not have had a significant repatriation. But in terms of what Zain charges as a management fee on the intercompany's fee, we have been able to achieve some level of repatriation of cash to the group.

Thank you very much, Sudhakar. Moving to Joyce.

Just a follow-up question on your FPB performance during this quarter. See, it has been very stable over the last several quarters. And this quarter, you have seen 10,000 net additions, and on top of that, as you mentioned, the ARPU also has improved. Can you tell us what are the reasons that led to this one, the subscriber additions and the ARPU improvement, as well as just touch upon whether this momentum still continues in the third quarter because we are 2 months into the second quarter. And how do you see for the full year this trend moving forward?

Sudhakar, will you please?

On PB, I believe you're comparing with the December numbers, right, and you see significant additions. See, to some extent, there has been good additions in terms of gross adds. But we'd also like to highlight that a part of this is related to some high level of terminations, which went up -- disconnections which went up in the month of December, particularly the last 2 weeks of December. But then out of those terminations, in the month of January, we were able to reconnect all these subscribers. Most of these subscribers were disconnected because of non-payment. So our dunning process kicked in and that led to a drop in subscriber base. But then a significant part of these subscribers were recovered in the first month of January itself. So I would say our gross adds is closer to around 3,000 across all the technologies, but a big chunk of it is coming out of reconnection. Now going by that logic, for the remaining quarters, the growth in subscriber base will not be to that extent, okay? We expect that the growth would probably be in the region of something like 3,000 to 4,000 net additions. I think that's what we would see. But ARPU is something which we would like to maintain at these levels. This is the peak in terms of ARPUs what we have seen in the past few years. So I think our objective would be to maintain these ARPUs at these levels.

Could you please throw some color on ZOI operations? You said there is a 4x revenue growth. So what kind of base numbers are we talking about and how is ZOI likely to perform? What's your strategic plans for ZOI over the medium term?

So now ZOI, just to give you the context, I think we discussed it in the previous investor calls also. ZOI is a wholesale joint venture between Zain Group and Omantel. Omantel owns around a 26% stake in ZOI. The objective of ZOI is primarily to manage the wholesale operations of both Omantel and Zain OpCos and, at the same time, invest on behalf of the group in building the wholesale capacity to serve our international customers, both in Oman and in the regions where Zain Group operates. So with that objective, ZOI started investing in building this both submarine cable connectivity and terrestrial connectivity in Zain OpCos and connecting them to Oman. In fact, one of the major project is to build the terrestrial connectivity from Oman to KSA. Besides this, they are also investing in multiple submarine cable projects, which will help us in sustaining the growth in wholesale revenue, which historically was concentrated to a great extent in Omantel as an entity. So now that value will come not only from Omantel and its relationships with international operators, which we have -- which as Omantel was built, it will also come from the Zain OpCo territories. And as a group, we believe that extending our capabilities across all these geographies, that will help us in increasing our wholesale revenue. Now the first quarter, the performance in terms of revenue increased significantly. That's because of the revenues coming from the OpCos itself in terms of the operations they're managing. Bulk of this growth has come from the voice-related segment. Now with that growth in voice segment, usually at a voice segment level, the margins are in the region of something closer to 4% to 5%. So although there is a significant growth in ZOI's revenue, the margins will not be similar to what you would see at a retail operations level. So first quarter is mainly the revenues which are coming from managing the operations of the OpCos. But going forward, the investments which we are making in building the submarine and the terrestrial connectivity, that will help us in achieving a good amount of value for the group at higher margins. And that will take some time because we are in this investment phase, and most of it would get realized in the form of revenues starting 2026 and thereon.

Got it. Another question I have is on the CapEx. Usually, we are seeing the first half is a low CapEx period, and then in the second half, the CapEx catches up to, let's say, 15%, 16%. But in this quarter itself, we are seeing 15% CapEx run rate. So do you expect an uptick in the CapEx for the full year? And how is your CapEx outlook for 2026?

So CapEx, yes, you're right. Probably the previous years when you see usually the CapEx for the first quarter is a bit low, but it sometimes depends upon the projects which will take up in the previous years also. Like even last year also, 2024, prior to that, the last quarter of 2023 also, we have taken up significant projects, particularly on the network side and upgrading our 4G sites, and at the same time, rolling out 5G sites. Now that has happened this year also, particularly where in Q4, we have started work on network-related areas in Q4 2024. So you see that a lot of capitalization has happened in the first quarter. Besides this, we have also been investing heavily on the digital side. On the digital side, primarily on our marketplace platform, we expect to launch our marketplace platform soon. So that's one area where CapEx investment has gone up. In addition to that, we are also ensuring that our app is enhanced significantly to ensure that we provide additional services, which will help us in diversifying our revenue streams also. So we have invested a lot in our mobile app platform also to ensure that we have additional streams of revenue. So those are some things to watch out for in the coming quarters, where the CapEx spent in this Q1 will start bringing in revenues.

Okay. So what would be the run rate for '25 and '26?

So for 2025, we expect that we should end up with a CapEx to revenue ratio of close to 15%. 2026, probably I will not be able to give an outlook at this stage.

Thank you, Sudhakar. Any further questions? Neetika, please go ahead.

Just a quick one from my side. On the CapEx requirement, would you be able to give some guidance on, particularly, growth CapEx? And are there any plans to tap the bond market anytime soon? Also, if you can give us an update on what discussions you are having with the rating agencies since both have placed you on a positive outlook.

Thank you very much. I think this is a mixed question for Sudhakar and Wahbi. Sudhakar, you may answer, and then, Wahbi, please, you may support us on the financing front.

So Neetika, I think when I was explaining the previous question on CapEx, see, a major portion of our CapEx actually goes into growth CapEx. See, the key areas on the network side where we invest is primarily, one, in extending our 5G coverage in terms of rolling out new sites. And in addition to that, we also build further capacities, right, to serve the huge bandwidth requirement coming from our customers. So to sustain and ensure that our revenues are retained as telcos, we need to continuously invest in not only building the coverage, but also at the same time, building the capacity also. So I would say that this is required to maintain the current momentum in the revenue. And as such, the CapEx is categorized as growth CapEx. In addition to 5G, to support 5G, at the same time, we also need to invest in the upgrade of our 4G sites. So this is also required to sustain our current revenue. So I'd say a big chunk of our revenue, a big chunk of our CapEx, is concentrated as growth CapEx. See, while we build our 5G sites, we also need to invest in our backbone in building the transmission, which is where the primary medium is fiber, right, so that we can provide these increased speeds to the customer. So most of it is categorized as growth CapEx. And I also explained to you about our investment in digital technologies, where we are trying to enhance our app. We are trying to build a new marketplace platform. All this is geared towards growth CapEx, which will help us in ensuring that in the future, we get additional revenues, and that's part of our techco strategy. So maintenance CapEx, while it is there, it's a smaller portion of our total CapEx.

Neetika, so with regards to your question on the bond and if we are having any plans to visit the market soon, obviously, we had issuance back in January 2024. And as you're aware, we only got the market as required in terms of availability for investments or maturing bonds to be refinanced. So the current maturing one is going to be in 2028 so there is time for that. As with regards to major investments on acquisitions, we have, right now, nothing major to announce. And therefore, the short answer would be no, we won't be visiting the market anytime soon. However, having said that, we do have regular dialogues with the banks, the capital market as well. We attend conferences. I was there recently as well as of yesterday. So we do have open conversations for whatever opportunities are available, whether it be in conventional or sukuk or even sustainability or green bond-associated funding. And in terms of credit rating, we have a lot of discussions with the credit rating companies. Very closely aligned with them. We have reviews. We have one, I think, end of this month with Moody's as well. So we do have regular conversations with the credit rating companies, Fitch and Moody's specifically.

Have they discussed any potential timeline on the upgrade because typically, they do make a decision post, I believe, 6 to 18 months?

Yes. So the outlook was positive from the feedback that I got, not only Omantel but the government in particular as well. So all the developing plans, the initiatives that were put in place to improve the deficit, indications are that Inshallah, such would ensure there will be some sort of an upgrade.

Thank you very much, Wahbi. Neetika, please -- Jocelyn, you may unmute to ask your questions.

I just have a very quick question regarding your financial disclosure because this is with regards to your standalone financials of the Oman operation. I think in last year, you used to provide it for the first quarter and the second quarter of 2024, but I'm not seeing it at the moment. Maybe just to understand the reason behind it, and are you going to give this disclosure going forward?

Jocelyn, I believe we have been sharing it through the distribution list, but I think it would be more helpful to put it on the slide as well. We do disclose the Omantel domestic financials, excluding Zain, every quarter, and we will put it as well in the presentation. And straightforward after this call, we will share with you the missing financial statements. Any further questions? If there is no any further questions, I would like to thank all the analysts who attended the meeting and the management team also for supporting with the Q&A. You're welcome to ask any questions. You have our contact details. And we would just like to also invite you to read our recent published annual report of 2024. And we also look forward to having you in the next quarter's call. Thank you very much for attending the call.