Egypt’s Mobinil posts 96% net profit loss

Mergers, Acquisitions and Financial Results

Egyptian telecommunications mobile operator, Mobinil has posted a 96% drop in third quarter net profits.

Mobinil received only 10 million Egyptian pounds (about US $1.6 million) in profits in the previous quarter, the company stated in a press release today, 26 October 2011.
The result is a net loss of nearly 110 million Egyptian pounds from the previous quarter. The reason is the continued economic and political turmoil facing the country after former President Hosni Mubarak was ousted in February.The company also said that it was hit hard by deferred taxes.

“The impact of the new tax regime is limited to current period profits as the hit related to deferred taxes was registered during the second quarter of 2011,” Mobinil said in a statement, but did not give further details.

Mobinil said in the statement that its total subscribers in the quarter increased 3.4 percent quarter-on-quarter to a total of 31.576 million subscribers. It was also hit by a large number of subscribers who left the company after former CEO Naguib Sawiris posted what many Muslims felt was a blasphemous cartoon depicting Mickey Mouse and Minnie Mouse as conservative Muslims.