Orascom Telecom posts $975,000 loss for Q3

Appreciation of Egyptian pound against the Canadian dollar tips telco into the red
Orascom Telecom's profit declined in Q3, despite a rise in revenues.
Orascom Telecom's profit declined in Q3, despite a rise in revenues.

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Egypt’s Orascom Telecom posted a net loss of $975,000 for the third quarter of the year.

The telco said that its net income before minority interests reached $10 million for the quarter, compared to $934 million in Q3 2010. The decline was due to a one-off $822 million gain in Q3 2010, combined with the appreciation of the Egyptian pound against the Canadian dollar, the telco said.

The telco increased its revenues by 3.5% to reach $1.01 billion in the third quarter, while subscriber numbers increased by 12%, giving a total subscriber base of 109 million.

Djezzy, Orascom’s operation in Algeria, increased its subscriber base by 9.2% to reach 16.3 million customers, while Mobilink in Pakistan increased its subscriber base by 6.3% to 33.4 million customers. Orascom’s operation in Bangladesh, Banglalink, increased its subscriber base to 22.1 million, a 22.3% rise on the same period last year.

Khaled Bichara, executive chairman, Orascom Telecom, said that the telco was starting to “leverage” the benefits of being part of a larger group, since its parent company, Wind Telecom, was acquired by Russian telco VimpelCom in April.

“In light of the newly combined VimpelCom Ltd, we are successfully beginning to leverage the size of the Group in order to realize CAPEX synergies and operational efficiencies, within our cost-optimisation strategy," he said.

"OTH [Orascom Telecom Holding] will be in a position to further focus on providing innovative solutions and services to its customers, by benefitting from newly gained advantages in technology deployment and commercial development.”
 

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