Egypt’s MobiNil reveals 8% net profit drop for 3Q 2009
Egypt’s largest mobile operator by subscribers, Egyptian Company for Mobile Services (MobiNil), has revealed an 8% year-on-year decline in net profit for the three months ended 30 September 2009. The cellco posted a net profit of EGP497 million (USD90.8 million) for the three-month period, although it revealed that revenue had grown 5% y-o-y to EGP2.79 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) remained almost unchanged at EGP1.27 billion.
Commenting on the results, Alex Shalaby, MobiNil’s chairman, said: ‘The Egyptian market witnessed very aggressive competitive price moves during the third quarter, but MobiNil still maintained its leadership position through providing a unique and diversified portfolio of products to serve its customers in the Egyptian market. I am also delighted to see MobiNil achieving healthy growth despite the global economic turmoil and the aggressive competitive environment that has been obvious throughout the whole summer.’
The cellco also reported that at the end of its third fiscal quarter its wireless subscriber base had risen to 24.6 million, up 30% against the same date a year earlier. Despite the increase in customer numbers, MobiNil did report that blended average revenue per user (ARPU) had fallen 19% y-o-y to EGP38, a decline that the company said was predominantly driven by the change in subscriber mix as it looked to increase penetration in the lower income sector.