Egypt landline monopoly sees profits up 3 pct

Reuters, Monday 12 Nov 2012

Telecom Egypt reports a 3 per cent increase in third quarter net profit as increased revenues from data services offsets lower revenues from lanlines

TE Data
TE Data is Telecom Egypt's most profitable business

Landline monopoly Telecom Egypt has reported a three per cent rise in quarterly net profit, at the top end of expectations.

The company, looking to data services to offset lower fixed-line income, said on Monday third-quarter net profit rose to LE633 million ($104 million), compared with a forecast for 625 million and a restated 615 million in the 2011 period.

The government has an 80 per cent stake in the firm.

Revenue rose six per cent to 2.48 billion pounds, against a forecast for 2.38 billion. Its EBITDA margin of 36.8 per cent was below a forecast for 41 per cent.

"With a healthy balance sheet and strong cash generation profile, we are well positioned and well financed to move forward against our objective of becoming a total telecoms operator as and when government licensing begins," chief executive Mohamed El-Nawawy said.

Telecom Egypt, which has a 45 percent stake in Vodafone Egypt - one of three mobile providers in the country, has been seeking a licence of its own to enter the mobile market directly.

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