Telecom Egypt loses LE85.56 million during political unrest

Ahram Online, Sunday 3 Jul 2011

Damages, thefts and fires took their toll on Egypt's sole landline provider over the first few months of the year

Telecom Egypt (TE) has announced total losses of LE85.56 million from network related damages and thefts in the period from 1 January to 31 May 2011. 

In a statement, TE said that losses relating to fixed assets were LE62.76 million in 1Q2011, representing 0.45 per cent of total net fixed assets at the end of March 2011. This included LE30 million in damages, thefts and fires, as well as LE32.78 million due to replacement of copper and fibre cables in the network, the company said.
 
From 1 April to 31 May, copper and fibre cables losses in the company’s network, due to thefts or damages, totalled LE22.81 million. 
 
Analysts played down the impact of the losses, saying there were unlikely to pose a threat to the operator's network operations.
 
Beltone Financial, in a statement, said it was still unclear how the losses would be accounted for on company income statements, and whether they would be booked as a single entry at the end of 2011 or smoothed over different quarters of the year.
 
On Friday, Telecom Egypt employees staged a demonstration outside company headquarters at Ramses Central in Cairo, protesting alleged management corruption.
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