Orascom Telecom returns to profit in Q2

Strong subscriber growth propels operator back in to the black
Ahmed Abou Doma said the results reflected strong initiatives across the group's operations.
Ahmed Abou Doma said the results reflected strong initiatives across the group's operations.

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Orascom Telecom has returned to profitability in Q2 with a net profit of $27 million, compared to a loss of $58 million in the same period last year.

The operator, which is owned by Russian telecom group, VimpelCom, posted revenues of $934 million in Q2, up 9% year-on-year.

Across its operations in Africa, Asia and North America, Orascom’s subscriber base reached some 83 million customers, a rise of 15% on the same period in 2011.

Ahmed Abou Doma, CEO, Orascom Telecom, said: “Group EBITDA growth once again surpassed consolidated revenue growth, another testimony to strong operational excellence initiatives across all of our operations, leading to profitable growth for yet another quarter.

“EBITDA exhibited an organic growth of 14%, as a result of cost savings in our major subsidiaries, mainly driven by Pakistan. Our operations witnessed solid performance in local currency terms. Nevertheless, the fluctuation of local currencies against the US dollar continued to adversely affect our IFRS consolidated results,” he added.

In Bangladesh, banglalink exceeded the 25 million subscriber mark, a 26% growth year-on-year.

In Algeria, Djezzy grew its subscriber base by 11% year on year, driven by strong subscriber acquisition coupled with a loyalty program aimed at customer retention. In Pakistan, Mobilink increased its subscriber base by approximately 8%, despite intense competition in the market.

Telecel Globe subscribers increased by 34% in Q2, driven by additions to Zimbabwe’s subscriber base and supported by market leadership positions in Burundi and the Central African Republic (CAR).

In Canada, subscribers of Wind Mobile increased by 44%.
 

 

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