1Q16 Results Highlights: Revenue – OMR136 mn, +5% Y-o-Y, +3% Q-o-Q, +4% vs. EFGe. EBITDA margin – 52.0%, +1.6pp Y-o-Y, +8.0pp Q-o-Q, +1.8pp vs. EFGe. Net income – OMR35 mn, +0% Y-o-Y, versus a loss of OMR39 million in 4Q2015, +24% vs. EFGe   Omantel released its preliminary 1Q2016 headline results with earnings beating our estimate of OMR28 million by 24%, driven by stronger-than-expected revenue as the company booked submarine capacity sales (wholesale revenue) which we did not account for. This has trickled down to the EBITDA line (before royalty), which reached OMR70 million (+8% Y-o-Y ; +22% Q-o-Q) and implies an EBITDA margin of 52.0% versus 50.3% last year and 44.0% last quarter. We suspect the margin expansion was driven by: i) the submarine capacity sale, a segment that is typically associated with high margins; and ii) strong contribution from high-margin broadband revenue in both the fixed and mobile segments. Additionally, 4Q2015 figures were negatively impacted by one-off costs associated with the impairment of WorldCall Telecom. (Company, Karim Riad, Omar Maher)