Orascom reports 76% slide in net profit in 2008, attributes drop to one-off gains in 2007

17 Mar 2009

Egyptian telecoms group Orascom Telecom has revealed a 76% slump in net profit for the twelve-month period to 31 December 2008 to EGP2.46 billion (USD431 million). The company attributed the fall to exceptional one-off gains made in the 2007 fiscal year. In 2007 Orascom generated USD761 million from the sale of its Indian operations, as well as USD920 million after divesting its interest in Iraqi cellco Iraqna. Revenue for the group however rose 13% year-on-year to EGP29.2 billion, whilst earnings before interest, tax, depreciation and amortisation (EBITDA) were up 15% against the same period last year at EGP13.1 billion. Whilst the majority of Orascom’s subsidiaries reported revenue, EBITDA and subscriber growths Mobilink, the group’s Pakistan-based cellco, underperformed, reporting a 4.4% and 11.4% decline in revenue and EBITDA respectively as it lost more than two million subscribers over the year.

Overall subscriber figures for the group rose 11% year-on-year to reach approximately 78 million, led by its Egyptian cellco Mobinil, which added almost five million customers in the year, a 33% increase against end-December 2007. Banglalink, the company’s Bangladeshi arm reported a 46% increase in customer numbers, adding more than three million to surpass the ten million total.