4Q15 results highlights: Revenue – OMR131 mn (+6% Y-o-Y, 4% Q-o-Q), +3% vs. EFGe; EBITDA margin – 41.0% (-1.2pp Y-o-Y, -4.3pp Q-o-Q) -1.1pp vs. EFGe. Net income – loss of OMR40 mn, versus income of OMR26 million last year and OMR29 million last quarter and our estimate of OMR30 mn.   Omantel released its preliminary 4Q2015 headline results with earnings missing our estimate of OMR30 million as it reported a net loss of OMR40 million versus a net profit of OMR26 million in 4Q2014 and OMR29 million in 3Q2015. Despite results being in line with our expectations at the operating level, earnings missed due to a number of one-offs which we did not account for including: i) full impairment of WorldCall Telecom (WTL) resulting in a OMR75 million non-cash impairment expense; ii) a OMR19.4 million FX loss arising from the impairment of WTL; and iii) a OMR12.6 million expense for voluntary end of service. Excluding these one-off expenses, net profit for the quarter would have reached OMR28 million, only 9% below our estimate. We had previously warned about a potential impairment of WTL in 4Q2015 (please see page 13 of this note).   According to the release, this will not impact dividend distribution, a view we agree with. Management proposed the distribution of OMR0.065/share in 2H2015 which brings the total dividend for the year to OMR0.115. This is exactly in line with our estimate and implies a dividend yield of 7.7% based on yesterday’s closing price and a pay-out-ratio of 171%. We reiterate our Buy rating on Omantel. (Omar Maher, Company)