On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Telecom Egypt has released financial results for the twelve months ended 31 December 2008, revealing a 10% rise in net profits against the same period a year earlier to EGP2.79 billion (USD492.2 million). Revenue for the company also increased, rising 1.2% year-on-year to EGP10.12 billion. Revenue from internet and data services rose 26% y-o-y to EGP575 million, helping to offset a 5% annual decline in fixed line voice revenues. Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) meanwhile saw a 4% decline against fiscal 2007, with Telecom Egypt attributing the fall to an increase in employee costs in 2008. Despite the fall in fixed line voice income, by the end of 2008 Telecom Egypt had 11.7 million fixed line subscribers, 4% more than at the end of 2007. Customers taking the operator’s ADSL services surged 91% to reach 424,000.