Mubasher: Oman Telecommunications (Omantel) reported a 46.88% drop in profits in the second quarter of 2017 compared to figures from the corresponding period of 2016.

The telecommunications company achieved profits of about OMR 17 million ($43.97 million) in Q2-17, up from OMR 32 million ($82.76 million) in Q2-16, according to a bourse filing on Saturday.

In the first half of 2017, the Omani telecom operator’s profits declined 38.92% to OMR 40.8 million from OMR 66.8 million in H1-16.

“The fall in net profit is predominantly attributed to the increase in royalty rates effective from 1 January 2017,” Omantel revealed, noting that royalty expenses rose to OMR 12 million in 2017 compared to the year-ago period of 2016.

Omantel previously reported that its net profit dropped 31.6% to OMR 23.8 million in Q1-17, versus OMR 34.8 million in Q1-16.

By 12:42 pm Muscat time on Sunday, Omantel’s stock retreated 3.33% to OMR 1.16.