MERGERS, ACQUISITIONS AND FINANCIAL RESULTS

Telecom Egypt reports 41.3% increase in first half net profit

Egyptian incumbent Telecom Egypt (TE) has released its financial results for the six months ended 30 June 2009, posting a consolidated net profit of EGP1.75 billion (USD315 million), a 41.3% year-on-year rise. The telco also reported that consolidated revenue rose 8.3% to EGP5.2 billion. Revenue from internet and data services led the way, rising to EGP316 million, a 24% increase on the same period a year earlier, while wholesale revenue was EGP2.18 billion compared to EGP1.89 billion in 1H 2008. Retail voice revenue, however, declined to EGP1.41 billion in the six-month period, a 3% y-o-y drop. Earnings before interest, tax, depreciation and amortisation (EBITDA) before provisions was EGP2.8 billion, a 16.1% annual increase.

At the end of June 2009 TE’s fixed line voice subscribers had fallen to 9.84 million, down more than 12% against the same date a year earlier. Sign-ups to the telco’s ADSL services, however, have continued to climb, with the operator reporting a 67.3% annual increase, bringing its broadband customer numbers to 502,157, which it estimated gave it a 59.8% market share.

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