The Egyptian Company for Mobile Services (ECMS), operating under the name MobiNil, reported 2.441 million active subscribers on March 31, 2003, compared to 1.954 million to the same time in 2002, representing an increase of 24.9 percent. Quarter to quarter this figure represents a seven percent rise.
Consolidated revenues recorded EP736 million versus EP570 million for the same period last year, an increase of 29.1 percent from the same period last year. On a quarter to quarter comparison this represents a 17 percent increase.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reached EP392 million, representing an EBITDA margin of 53.2 percent compared to EP282 million and 49.5 percent in Q1 2002. This EBITDA growth represents an annual improvement of 39.0 percent and an 18 percent quarter to quarter rise.
Consolidated net income for the quarter reached EP154 million (EP1.54 per share), compared to EP83 million for Q1 2002, an increase of 84.1 percent. Quarter to Quarter Mobinil reported a 198 percent rise.
Osman Sultan, president and CEO, commented on the results: “Subscriber growth this quarter ascertains MobiNils ability to segment and tailor its offerings to meet market needs. Sustainable and recurring revenue streams are the building blocks of the year on year total revenue increase of 29.1 percent.”
“The implementation of improved processes and the introduction of better controls have resulted in efficiency gains as evidenced by the 39 percent increase over last year in EBITDA. Our EBITDA margin of 53.2 percent confirms MobiNil managements ability to deliver best in class value,” he added.
“Our net income of EP154 million is coherent with out goal of maximizing shareholder value,” Sultan continued, “During this quarter, the Telecommunications Regulatory Authority approved tariff adjustments. Postpaid mobile to mobile per minute tariffs increased slightly and are still among the lowest tariffs in the industry. The bulk of the adjustments were reductions in monthly connection fees, scratch cards administrative fees, and prepaid per minute tariffs providing better value for money for 80 percent of our subscriber base.”
Operating since May 1998, MobiNil is currently the largest wireless service provider in the Middle East. The company’s network covers over 93 percent of Egypt’s populated areas with roaming agreements signed with over 75 international carriers. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
