MobiNil records disappointing net profit results for 2Q 2002
The Egyptian Company for Mobile Services (MobiNil) recorded net profits of 70 million Egyptian pounds ($15 million) in the second quarter of 2002, a 16 percent decrease compared to the previous quarter, and a 36 percent decrease compared to the same period last year, stated a press release.
Revenue grew to a record EP 609 million, up seven percent from the first quarter of the year. Earnings before interest, taxes, depreciation and amortization also registered records both as an absolute amount of EP 312 million, up 11 percent from the previous quarter and as a margin of 51.3 percent compared to 50 percent in the first three months of 2002.
The margin improvements were mainly a result of improved cost controls, as well as an increase in the number of subscribers that reached 2.108 million, coupled with a change in the subscribers mix that increased the postpaid percentage to 20 percent from 18 percent at the beginning of the year.
However, the strong operational performance was offset by non-operating charges of EP 45 million, probably related to foreign exchange provisioning that will be clarified in the near future. Foreign exchange provisioning reached EP 11 million last quarter, and EP 19 million during the same period last year. — (menareport.com)
© 2002 Mena Report (www.menareport.com)