Telecom Egypt expects higher dividend for shareholders

Ahram Online, Reuters, Monday 14 Nov 2011

The company has been suffering falling revenues since the January 25 Revolution

Telecom Egypt expects to propose a higher dividend pay-out ratio to shareholders at their next annual meeting despite the third quarter dip, Chief Financial Officer Hassan Helmy said.

The company no longer hopes to secure a mobile virtual network licence towards the end of the year - a key goal of the company as it seeks to push further into mobile services.

"We are in continuous conversation with the regulator," CFO Helmy told Reuters. "We don't expect it to happen in 2011 of course... It is not happening as quickly as we wanted."

Land-line monopoly Telecom Egypt posted a 21 per cent drop in third-quarter net profit on Monday as it continues to suffer the economic fallout of a popular uprising.

The company, which is banking on data services to offset lower fixed-line income, said its net income fell to LE 622.7 million from LE 789.8 million in the same period a year earlier.

Consolidated operating revenues fell 10 per cent to LE 2.35 billion amid continued disruption to Egypt's business environment and seasonal effects of the Muslim holy month of Ramadan, it said.

On the other hand the company's financial results for nine months showed that it achieved a net profit of LE 2.3 billion.

Search Keywords:
Short link: