Vodafone Egypt expects revenue growth slowdown in 2008

Mergers, Acquisitions and Financial Results

Wireless operator Vodafone Egypt expects revenue growth to slow to between 18%-20% in 2008, Reuters is reporting, with the cellco claiming that the increased competition and market penetration in the country will play a role in the slowdown. Richard Daly, Vodafone Egypt’s CEO, said, ‘Last year growth was well over 30%. There is a natural curve in our growth and we are in a three-player market.’

According to TeleGeography’s GlobalComms database, Etisalat Misr was awarded Egypt’s third mobile licence in July 2006, launching commercial services in May 2007. Vodafone Egypt is currently the second largest cellco by subscribers in Egypt, with MobiNil currently the market leader. However, both operators have lost market share since Etisalat launched, with MobiNil dropping from 52.5% in March 2007 to 46.6% at the end of June 2008, while Vodafone’s share fell from 47.5% to 40.4% during the same period.

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