OT announces FY2000 results
Orascom Telecom –OT (ORTE.CA /ORTEq.L) announced FY2000 results ending December, in which consolidated net income inched down 1.8 percent to LE37.3 million compared to LE38.0 million in FY99.
Meanwhile, consolidated turnover nearly doubled to LE2,172 million compared to LE1,051 million in FY99. The Egyptian Company for Mobile Services –ECMS (EMOB.CA) was the largest contributor, accounting for 34.3 percent of attained revenues. Main contributors to turnover by business segment were cellular operations, which constituted 86 percent and telecommunication services, which constituted 7.4 percent.
Cost of Services to Revenue was significantly lowered to 27.2 percent compared to 40.0 percent in FY99. Cellular operation costs made up the bulk, representing 71.9 percent of Cost of Services. All costs of services categories rose except telecommunications services, which fell 25.7 percent to LE80.2 million.
OT managed to double its EBITDA to LE659.6 million with help from ECMS and FastLink, each contributing 46.3 percent and 29.7 percent, respectively. Meanwhile, EBITDA margin slightly edged up to 30.3 percent versus 29 percent in FY99.Its worth noting that the latter does not show the full potential of the 19 networks, as 9 were put on air in 3Q and 4Q FY2000.
With OT’s expansion plans and development of existing operations in Africa, the Middle East and recent start-ups in Yemen (SabaFon) and Syria (SyriaTel), SG&A expenses increased 16x to LE384.7 million up from a modest LE24.1 million, whereas other operating expenses increased 60 percent to LE446.0 million compared to LE279.2 million in FY99.
As the company is acquiring new licenses and new networks are going into operation, with Yemen and Syria being the latest, depreciation and amortization surged to LE472.7 million compared to LE141.8 million in FY99.
Interest income and other revenues rose to LE166.2 million (including a LE108 million capital gain from the sale of OT’s holdings in ECMS in 1Q FY2000). Forex gains scored LE52.1 million compared to a negative LE6.6 million. These gains helped moderate the effect of interest expense which increased to LE229.6 million, pushing EBT 36.1 percent higher to LE150.7 million from LE110.7 million in FY99.
Prime Securities S.A.E.
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