Telecom Egypt says Q2 net profit drops 25 pct

Reuters, Wednesday 8 Aug 2012

Country's landline monopoly blames profit-fall on increased wage bill and weaker revenues

Landline monopoly Telecom Egypt reported a 25 per cent drop in second-quarter net income on Wednesday, pushed lower by weaker revenue and employee demands for higher pay since the country's president was overthrown in a popular uprising.

Net income was LE613 million ($100.87 million), down from LE813 million in the second quarter of 2011, the company said in a statement. Revenue fell 7.9 per cent.

Egypt's economy has been hit by political turmoil since Hosni Mubarak was ousted in February 2011. A new president took office in June but the transition has been marred by violence and rows between political groups and the ruling army.

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