MERGERS, ACQUISITIONS AND FINANCIAL RESULTS

EGYPTIAN COMPANY FOR MOBILE SERVICES’ SHOWS NET INCOME GROWTH

Egyptian Company for Mobile Services ­ ECMS (EMOB.CA) released 2Q FY03 results ending June, in which net income recorded an impressive 153% growth to come in at LE178 million (inline with Prime’s LE180 million estimate) up from LE70.2 million reported in the comparable period last year.

Meanwhile, on a q-o-q basis revenues grew 7.5%, on the back of 5% subscriber growth (122,000 new subs), while net income advanced 16% over the associated 3-month period. A significant 30% advance in annual revenues fueled the company’s bottom line, attributable to 22% y-o-y subscriber growth coupled with higher LE105.4 ARPU, versus LE100 as of 2Q FY02, following April 21 implementation of a more favorable tariff structure.

The EBITDA margin also witnessed a notable improvement to 53.6% up from a comparable 53.2% and 51.3% in 1Q FY03 and 2Q FY02, respectively. On the other hand, the company reported LE39 million in the form of non-operating expenses over the quarter, the majority of which represent FX losses stemming from ECMS.

(Prime Securities via LiquidAfrica)

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