Orascom Telecom incurs EP93 million net losses in third quarter
Cellular conglomerate Orascom Telecom Holding (OT) recently released its consolidated results for the third quarter of the financial year 2001, in which net income recorded a 93 million Egyptian pounds ($20.3) loss, as compared to EP37.2 million losses posted in the previous quarter. The company’s net consolidated loss for the first nine-months period of FY01 thus totals EP162.9 million, compared to a loss of EP15.76 million in the corresponding period in FY00.
Nonetheless, the company’s total revenues recorded an impressive 30 percent growth, reaching EP1.072 billion in 3Q FY01 compared to EP824 million in 2Q FY01. A total of EP2.65 billion in revenue was reported between January and September 2001, reflecting a 79 percent rise over last year’s nine-months results. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose 17.3 percent to EP319.4 million from the previous quarter.
OT’s total subscriber base grew to 3.66 million, up 73 percent from the beginning of the year, with 457,400 subscribers joining in the 3Q alone. Proportionate subscribers totaled 1.78 million in the third quarter, ending September 30, a 16 percent increase from 1.53 million in the second quarter.
As much as 89 percent of the company’s revenues in 3Q FY01 were derived from OT’s cellular operations segment. FastLink recorded EP297 million revenues, a 46 percent hike over 2Q FY01. The TelCel subsidiary generated EP310 million, while MobiLink’s revenues reached LE95 million and ECMS’s recorded EP267 million.
OT’s deteriorating bottom line in the third quarter is attributed to interest expenses, reaching EP288 million, and Foreign exchange (FOREX) losses, totaling EP67 million, following recent currency devaluations. "While there is a negative net income, due in a major part to foreign exchange, subscribers, turnover, EBITDA and EBIT continue to grow at a steady pace," the company said in a statement.
Positive news on the sale of OT’s sub-Saharan African subsidiary Telecel, are reportedly expected later this month. Acquired in late 2000, the loss-generating Telecel continues to burden OT, which is seeking means of finance for its recently acquired Algerian GSM license for $737 million.
Algeria's second mobile phone network, Djezzy, is soon scheduled to commence services. OT plans to invest $300 million in the one million-user network. Over the past two years, the Cairo-based OT has acquired licenses and joint ventures spanning 20 countries in the Middle East, Southwest Asia and Africa. — (menareport.com)
© 2002 Mena Report (www.menareport.com)