Mubasher: Oman Telecommunications Company (Omantel) on Sunday reported a 31.6% decline in its net profits for the first quarter of 2017, compared to the same period of 2016.

Net profits amounted to OMR 23.8 million ($61.65 million) in Q1-17, compared to OMR 34.8 million ($90.15 million) in the corresponding period of 2016, according to the company’s financial statements.

The net profit drop was due to the increase in royalty expenses starting from 1 January 2017, which stood at OMR 6.4 million compared to Q1-16, Omantel said in a statement to Muscat Securities Market (MSM).

The company’s total revenues amounted to OMR 132.6 million for Q1-17, compared to OMR 133.9 million in Q1-16, registering a decline of 1%.

Operating expenses rose 3.4% reaching OMR 63.8 million in Q1-17, compared to OMR 61.7 million in the same period in the year before.

Omantel had previously reported a 140.6% surge in its annual net profits reaching OMR 116.7 million in 2016, compared to OMR 48.5 million in 2015.