The Egyptian Company for Mobile Services, ECMS-Mobinil, released its financial year 2000 unedited results ending December 31, 2000. Net income surged 105 percent to 289.1 million Egyptian pounds, compared to LE 141 million in FY99. Revenues edged up 41 percent to LE 2,117 million, compared to LE 1,501 million.
Lower cost of service and operating expenses to revenue were the most influential items that made ECMS surpass expectations of LE 27.2 million.
Cost of service/revenues steeped down to 17 percent compared to 22.5 percent in FY99. Moreover, operating expenses to revenues dropped to 39.5 percent from 41.7 percent in the previous fiscal year. Consequently, earnings before income tax, depreciation, and amortization (EBITDA) margin increased to 44 percent in FY2000 from 36 percent in FY99.
ƒnInterest expense was lower than expected. Until third quarter FY2000, the amount of interest calculated was LE 195 million, while interest income was LE 25.5 million. However, by the end of the year, interest was just LE 112 million. The reason behind the lower interest expense was the capitalization of a tranche of its interest to be amortized in the following years when tax benefits can be derived.
ECMS subscriber base grew in the 4th quarter FY2000 by approximately 188,000 subscriptions ،X an 18.4 percent growth bringing the total to around 1,210,000 subs from 1,022,000 at the end of September 2000. Over the entire year, subscribers grew more than 135 percent.
Accordingly, Average Revenue per User (ARPU) has dropped from LE 373 in FY99 to LE 204.7 in FY2000, translated to $51.2. On a more positive note, ECMS has provisioned against currency losses on the basis of LE 3.95 per dollar. This move will lower any concerns of forwarded losses.
Quarter-on-quarter, net income for 4Q FY2000 amounted to LE 114.7 million, 45.2 percent higher than 3Q2000،¦s net income of LE 78.99 million. Revenues edged up 5.5 percent to LE 580.1 million compared to LE 549.8 million of 3Q 2000.
The 4Q increase in revenues was backed by the diverse services ECMS provides such as ALO ,ALO Taksit (instalments) and ALO Wasahlan, which is a limited duration prepaid card. Moreover, higher SMS and data transmission via mobile phones supported the growth. Other services ECMS provided during the quarter included its Moga Visa card.
ECMS is expected to see further growth in FY2001, backed by higher penetration rates, expected lower FOREX provisions and more favorable terms for interconnection fees with Telecom Egypt. ،X (Prime Securities S.A.E.)
The Mobinil GSM 900 cellular network in Egypt is operated by the Egyptian company for Mobile services (ECMS) ،X an Egyptian public company. Mobinil is the consortium, which has acquired the majority shareholding in ECMS. It is also the new brand name of the Egyptian national mobile telephone network to give a coherent identity to the services being offered by ECMS. The partners in Mobinil are France Telecom, Motorola, Orascom Technologies, Al-Ahram investments, Systel and the agent of Alcatel in Egypt. The Mobinil consortium holds 68percent of the issued shares in ECMS.
© 2001 Mena Report (www.menareport.com)
