TELECOM EGYPT FIRST HALF YEAR RESULTS

Mergers, Acquisitions and Financial Results

Telecom Egypt, the largest fixed- line telco in the Middle East and North Africa, has announced that first-half profit rose 7% on subscriber growth. Net income grew to Egyptian Pounds (EGP) 1.1 billion (US$191.5 million), from EGP1 billion pounds a year earlier.

The number of fixed-line subscribers rose 9% to 10.6 million in the first six months from 9.8 million a year earlier, while sales rose 9% to EP4.4 billion pounds from EP4 billion.

"The emphasis of our activities will now begin to shift to subscriber segments where demand for additional telecommunications services is intensifying," commented Telecom Egypt's chairman, Akil Beshir.

Fixed line penetration reached 14.8% in Egypt at the end of June, with Telecom Egypt also reporting a substantial growth in number of ADSL subscribers – from 16,000 in June 2005 to 48,000 in June 2006.

Half year EBITDA increased by 6% year-on-year to reach EGP 2.5 billion, with a 56% EBITDA margin that remains one of the industry’s highest.

ITP