Mergers, Acquisitions and Financial Results

Orascom Telecom Holding (OTH) has announced its consolidated results for the third quarter 2006. It has posted a 37% increase in third quarter EBITDA as its group mobile subscriber base leapt 83% year-on-year to more than 46 million.

Revenues in the three months ended 30 September rose 35% to EGP18.52 billion (USD3.216 billion), pushing EBITDA up to EGP8.295 billion and net income up 12% to EGP3.203 million.

At the end of September its total subscriber base across all operations reached 46.52 million, up from 25.49 million a year earlier. Orascom has stakes in mobile operators in Algeria, Pakistan, Egypt, Iraq, Tunisia, Bangladesh, Africa and the Republic of the Congo (Brazzaville).

Orascom Algeria subscribers base (service brand name Djezzy) grew by  62% from 6.1 million to 10 millions (September 05 – September 06). The company also said that it has acquired an additional 7.91% stake in its Algerian subsidiary from minority shareholders for USD399 million. The deal raises OT’s total stake, directly and indirectly, in Orascom Telecom Algeria to 95.6%.

In Egypt the subscribers base (service branded Mobinil) grew by 35% from 5.9 million to 8.1 million over the same period while in Tunisia, the subscribers base (service branded Tunisiana) grew by 42% from 1.9 million to 2.8 million.

In sub-Sahara Africa, Orascom’s overall mobile operations have declined because the company sold Libertis Telecom in Congo-Brazaville at the end of 2005. It also divested in its Congo DRC subsidiary branded Oasis Telecom.  The remaining activity of Orascom in sub-Sahara Africa is in Zimbabwe where it partly owns Telecel and recorded a growth of 11% from 129,809 to 143,829 subscribers.