Telecom Egypt's (Photo: AO)
Telecom Egypt (TE), who has a monopoly on land lines, reports first quarter of 2013 (January-March) profits decrease by 6.2 percent compared to the same period of the previous year, maxing out at LE858 million ($123 million). Revenues, however, increased slightly over the same period to LE2.171 billion ($311 million).
Net operating profits decreased significantly to LE533 million ($76.1 million) from LE887.2 million ($126.7 million).
Quarter on quarter, profits registered a 90 percent increase, from LE452 million ($64.5 million) in the last quarter of 2012. Investment bank, Beltone financial said the quarterly surge in net profits came on the back of the increase in revenues as well as a foreign exchange gain of LE203.5 million ($29 million).
EBDITA margin slumped from 52 percent in the first quarter of 2012 to 35 percent, mainly on the back of an annual increase in salaries effective January, the backdating of interconnection costs due to the Mobinil agreement and the increase in promotional activities, according to Belone.
The public company revealed this week that it is ready to launch mobile services by July once the industry regulator awards it a mobile operating license.