Telecom Egypt Q1 net profit dips 10pc
Cairo, June 1, 2011
Landline monopoly Telecom Egypt posted a 10 percent drop in first-quarter net income on Wednesday after anti-government protests hit the economy.
The company made net income of 892 million Egyptian pounds ($150.1 million), down from 992 million pounds in the same period a year earlier, and compared with an average forecast of 689 million from three analysts.
Earnings before interest, tax, depreciation and amortisation were 1.284 billion pounds, down from 1.364 billion, and revenue fell 4 percent to 2.4 billion pounds, it said in a statement.
Telecom companies including Vodafone Egypt were forced to cut their lines during the height of the protests that toppled President Hosni Mubarak on February 11. Telecom Egypt owns a 45 percent stake in British operator Vodafone's local unit.
An administrative court fined Mubarak and two former officials 540 million Egyptian pounds ($90.77 million) on Saturday over the service cuts.
"I firmly believe that the biggest impact (of Egypt's political turmoil) is behind us. We look forward to the future with confidence," said chairman Akil Bashir.
Telecom Egypt said on March 7 that the unrest cost it 17.57 million pounds. Its shares are down 12 percent this year, outperforming a 22 percent drop by the benchmark Egyptian EGX30 index.
The company said the number of fixed-line subscribers was flat year-on-year at 9.3 million and it expanded its share of the ADSL market to 63 percent from 61 percent, helping expand its internet and data revenues by 33 percent. - Reuters